Cavendish Financial Share Discussion Threads

[disc0dave46] 11/11/2024 11:46

QPCompletely false, Graham Neary has not reported anything of the sort. He's reported positively on CAV but also flagged some bear points.The quote you posted up here is from a comment by a subscriber NOT Graham.Looks like you could do a marvellous PR job for CAV!.From now on I don't believe a word you post.Folks DYOR

[fenners66] 11/11/2024 11:24

"Cash (used in) / generated from operations (4074 ) k

That's with the ongoing level of business to continue in the second half....

[fenners66] 11/11/2024 11:20

Have they messed up note 7 ?

Dividends proposed and paid - ie nil proposed ?

[fenners66] 11/11/2024 11:18

kenmitch - then you have missed this line ...

""Cavendish has started the second half well, with the H2'25 revenue run rate continuing in-line with H1'25 "

Which means that at that rate H2 will be 20.2% down on H2 24
H1 being 20.2% down on H2 24 already

[kenmitch] 11/11/2024 11:16

Though agreeing about the window dressing, isn’t the key thing to look at now the strong likelihood of a lot more fund raisings and profitable IPOs coming their way? That would rake in the cash and see profits and dividends soar too as they did for Cenkos in the good years. I see the improved prospects for AIM at long last after so many years of AIM being a diabolical area, as a huge potential for Cavendish that is not remotely priced in. I.e a risk if focusing too much on the window dressing and devious bits in their update today of missing out on a potential multi bagger?

Que Passa. I share your positivity about Cavendish but that doesn’t extend to ignoring the bear case.

[fenners66] 11/11/2024 11:05

disco - "taking on more talent"

I had to look twice at my spreadsheet as the "average employee numbers" are unchanged - but that is unchanged from the H2/24 as I had calculated it extracting the second half average out of the full year numbers , they gave us the first half numbers separately.

And that is more of the spin. Telling us the "average employee numbers" for the whole of the last year hid that they had already increased them in the second half..

[fenners66] 11/11/2024 10:56

I also question do they pay Xmas or end of year bonuses ?
If so what happens to that 7th Nov cash then ?

[fenners66] 11/11/2024 10:54

If they had really good news to tell , it would come through without all the window dressing of the numbers.

If we had not broken the previous half year out of the numbers .... but its so obvious to do so.
The market they are in analysts are going to split the last half year out and see the comparison.

As I said previously they have to slash costs or massively hike the revenue again vs H2 /24 not vs H1/24 in order to get to a meaningful profit - but they have not done so. Its gone backwards and they are expecting the same for the current period.

The directors and employees are doing very nicely from this.

Even some of the worst , no revenue , no chance of a profit companies on the stock exchange that have to make share based payments because they have no cash - DON'T try to mask that by adding in adjusted figures that ignore them....

[fenners66] 11/11/2024 10:47

Only just !

[disc0dave46] 11/11/2024 10:47

FennersYou beat me to it on certain points!.

[disc0dave46] 11/11/2024 10:45

They certainly do know how to cherry pick the headline numbers.Adjusted pbt £1.8m, share based payments £1.6m. Breakeven virtually on a reported level.Taking on more staff since the merger too. Yes non employee savings when rounded up to 12% looks great, but it's actually 11.7% with employee costs increasing 11.6% with overall admin costs increasing by 3.9%. The merger synergies / efficiencies being wiped out by employee costs.....which will continue to increase as they take on more high level "talent" and the NIC hike. Doesn't stop them dishing out a decent wedge of share based payments though.Will keep an eye on this but thanks to fenners previous points I'm not as keen as I was.

[fenners66] 11/11/2024 10:45

"Cavendish has started the second half well, with the H2'25 revenue run rate continuing in-line with H1'25 "

Which means that at that rate H2 will be 20.2% down on H2 24
H1 being 20.2% down on H2 24 already

They have cut their admin costs - but only enough to make just over break even
As for ignoring - "share-based payments, non-recurring items (of which there were zero in the period), share of associate profits and fair value gains on long term investments."

That's disingenuous - if you don't want share based payments in the numbers - DONT make them.
Incidently the cost is £1.579m which is 111% more than the same time last year - no wonder they want the market to ignore it.



Saying they are ignoring "share of associates profits " how could they do that ?

The figures show "Share of joint venture and associate LOSSES (135)"

Employee cost has fallen H2/24 to H1/25 (it needed to ) but is still average £100k each.

But although non-employee costs have fallen compared to H2/24 their percentage of revenue has actually increased from 26.7 % to 27.9%

Making 1p EPS and paying 3p dividend is unsustainable - but they bought a load of cash for shares in the merger so have the cash to do so.
As for producing a cash number as of 7th November that comes with no comparison for the same date and who knows how the timing of invoice and monthly payment cash flows vary from week to week....

[fenners66] 11/11/2024 08:07

So they have confirmed what was already known - to some extent

This half vs last

Revenue down £7m
Operating profit down £358k
Non recurring charges down £2277k
A small PBT of £52k

Cash down £3.5m

[tanneg] 25/10/2024 14:06

£25M raised for ELIXIRR INTERNATIONAL PLC yesterday

[its the oxman] 21/10/2024 12:24

Likely to stay under pressure until we get a clearer picture.

[missdelta] 08/10/2024 14:03

Cash is down because they paid out bonuses in H1 I suspect - If they have a bad budget and a £20m H2 they will be right up against their reg capital requirements. Needs to get its cost base down asap and stop spending so much on its board