Bonmarche Share Discussion Threads

[mammyoko] 21/9/2016 08:32

Hope so. In at 82.6 for a yield of 8.6%.

[blueball] 21/9/2016 08:27

I think they have reached their bottom today.

[boonkoh] 29/7/2016 00:48

Certainly a very sharp drop that other retailers are not seeing. I don't 100% believe the weather excuse. I think the new CEO will have to kitchen sink alot and so think the share price could head lower.

[she-ra] 28/7/2016 15:46

Quite a drop in sales. I've been told the quality of design is slipping. So makes me wonder whether the weather is just an excuse.

[jimmywilson612] 15/6/2016 18:00

Are them two Buys at the close real?

[isaready] 14/6/2016 15:40

All,

Been looking at these and trying to decide is this the bottom, are they worth buying.


I see they have a cash pile and with the share price falling, fallen, the question is, they have no debt and they have a pile of cash, will their lower turnover and so called gross profits cover their operations, i.e they won't deplete their cash pile? Will they still pay the dividend?

[qvg] 11/6/2016 11:11

thanks Ed, maybe see you there

[ed 123] 10/6/2016 09:45

Hi qvg.

Yes, Wakefield post code but it's actually half way between Wakefield and Huddersfield.

The AGM will be held at BonmarchéR17;s Head Office, Jubilee Way, Grange Moor, Wakefield, WF4 4SJ on Thursday 28 July 2016. The meeting will start at 12.00pm and registration will be available from 11.30am.

[qvg] 10/6/2016 09:37

Ed, is the AGM in Wakefield? i was thinking of attending too

[jojaken] 10/6/2016 09:32

Thank you Ed. I look forward to your update after the AGM.

[ed 123] 10/6/2016 09:29

jojaken.

Agree, cash position will worsen this year, as you say. There will also be larger than normal capex in FY 2018, due to further payments in respect of the replacement of the ERP system.

'Normal' capex? That depends on the number of new stores they open. Do they have a target? When the systems update is done and they have reached their target number of stores, the cash generation should look much better.

Dividend increase for FY 2017? The brokers have estimated an increase of about 5%. In the context of a flat underlying performance, I think a small increase would be given.

Of course, what they need is a good selling season. A good set of LFL figures later in the year would boost sentiment here - that's my hope.

I'll attend the agm (28 July) and ask a few questions.

[jojaken] 10/6/2016 09:03

I'd agree Ed, at present price I won't be increasing or selling. It's a firm hold until more is known about the spring/summer season.

One point Ed, while the cash flow was good this year, I am not so optimistic for FY17. Operating activities generated net cash of £10.5m FY16 (FY15: £11.1m).

However the cash balance only increased by £1.9m to £13.0m (FY15: £11.1m).

The cash generated was principally applied to make tax payments of £2.5m, dividend payments of £3.4m and capex payments of £5.0m.

So extrapolating approximately for FY16, tax payments of £2.5m, dividend payments of £3.5m, and (the killer) capex payments of £14.0m.There will also be stock increases, very conservatively, of £4.0m (No positive impact from the Chinese New year being earlier in 2017). This would leave cash of only about £2m!

Not sure that you can expect much of a dividend increase next year Ed.

Do Cantor Fitzgerald give any indication of expected cash flow and dividends in their figures for next year?

[ed 123] 10/6/2016 08:24

FWIW, Cantor Fitzgerald have moved from 'hold' to 'buy', price target from 230p to 160p.

[ed 123] 10/6/2016 08:13

So, it's opened up at 129-135p. MMs being cautious.

On current news, I'll continue holding. This may be a low point. In a year's time, if the stated headwinds have passed through and lfl sales are up too, then BON could trade in the market at a p/e of 10 again, giving a share price of 180p, rising to 200p for full year ending 2018. Dividends look very safe due to the cash position and good cash flow. (My own view - no advice intended)

[ed 123] 10/6/2016 07:56

Hmmmm .... Yes, that outlook statement is an early warning. The expectation for 2017 was a whisker under 20p eps. At 130p that would represent a p/e ratio of 6.5. The full year dividend 2016 is 7.14p, giving a yield of 5.5%. 5.8% for 2017? £12M of cash on a market cap of £65M.

At this early stage I'd expect them to miss the 20p eps, but rougly match 2016's earnings. So, eps for 2017 18p and at today's 130p, p/e ratio about 7.2.

Sun Capital have the majority of shares. Will they sell the remainder? Bonmarche could be a nice little cash earner for a bigger enterprise.

[jojaken] 10/6/2016 07:18

Numbers seem to be pretty much as expected on quick run thru. Nice increase in the dividend considering and slightly better cash flow than I would have thought. "approximately £4.0m of capital expenditure originally planned for late FY16 will now occur in FY17". Total capital expenditure for FY17 will now be approximately £14.0m, (FY16: £5.7m, FY15: £6.3m)

However, it will be interesting to see how the market reacts to the outlook statement "Trading during the early part of FY17 has continued to be tough due to poor weather, however our full year expectation is unchanged provided trading conditions normalise."

[cockerhoop] 26/5/2016 09:17

Tipped in Shares magazine apparently

[mammyoko] 26/5/2016 09:12

Support job in operation. Should go back to 150p

[gorse] 25/5/2016 15:55

Decided to have a couple of tranches this morning ... don't even have to use scarce wardrobe space ...

[newforestlad] 24/5/2016 11:12

Watching for the bottom. Can't be much further. Results in June.

[mammyoko] 23/5/2016 07:54

Ex-cash p/e based on latest forecast earnings on Morningstar of 5.5

[bradis] 21/5/2016 13:37

I bought in a couple of days ago at 130p. Can't see it going much lower. Solid balance sheet as well. Possible takeover target?

[jimmywilson612] 20/5/2016 16:19

How low can we go?