Conviviality Share Discussion Threads

[typo56] 14/3/2018 13:42

Today's statement says:-

The covenant net debt at 29 April 2018 is expected to be approximately GBP113.0 million (which excludes any amount drawn down under the Company's invoice discounting facility).

The Company continues to expect net debt to be approximately GBP150.0 million for the period ending 29 April 2018 including the invoice discounting facility.

Does that mean they expect to be drawing just £37m on the invoice discounting facility?

Surely they could be drawing more, a lot more? Enough to cover a £30m VAT bill.

[rocka999] 14/3/2018 13:41

I like VRS Killer Bee but dyor as ever

[killer bee] 14/3/2018 13:37

Hi Russell

Thank you for your opinions.

KB

[lucicavi] 14/3/2018 13:25

Worse than Accrol bog roll

[lucicavi] 14/3/2018 13:23

40p next

surprised Zeus didnt float this crock

[kemche] 14/3/2018 13:12

What are the odds that a new broom that is appointed will find a litany of other problems festering in a company that "forgets" to account for a tax bill and suffers from other "arithmetic errors"? Kitchen sink and rescue rights in short order I should think.

[killer bee] 14/3/2018 13:11

Hi WJ

I want to go large. I do not want to throw the doormat, the house sale monies will thrown on the aim.

Thank you for the heads up. I will scan IMM.


KB

[russell250] 14/3/2018 13:10

killer bee

I would not like to give advice considering your run of events

personally i would spread your money

most of my money remain in funds predominantly in emerging mkts, china and other far east investments - events like today are more protected through funds and wider portfolio`s

i will be retaining my shares in immediate future if confidence in forthcoming events match recovery plan

[dagsteeth] 14/3/2018 13:10

They have 48 hours to save this. Major customers will be moving their distribution contracts to ensure continuity of supply. There won’t be any Ebitda to finance

[bignads] 14/3/2018 13:08

This is interesting - states that declaring an interim dividend generally doesn't create a right for the shareholder...

hxxps://www.elementalcosec.com/guides/declaring-dividends/

[w1ndjammer] 14/3/2018 13:08

killer bee

take a look at IMM if you fancy a punt.


WJ.

[bignads] 14/3/2018 13:04

What a mess. how legal would it be to cancel the dividend payment due on Friday and use the cash for tax payments - presumably a breach of contract with those holding shares at the registration date. However, might need to happen.

[killer bee] 14/3/2018 13:03

Hi Russell

I was wondering if you think this will be a buy at some point. My dad been in prison and not coming out for a long time.

I am now the custodian of his house and am thinking of selling it to buy an Aim multi bagger share. It does not matter if I lose all as by the time he gets out in 2030 I will be long gone if I lost his monies.

He ruined the family holiday to Orlando Disneyland. He went to get lunch us at "Wendy's" but never came back. He actually went to rob a US Postal office, which is a federal offence (min sentence is 25 years). Someone got sent down for 40 years for robbing $10 from a USPS branch.

Do you think I should do it here when it opens? I have a cash buyer for the house.

KB

[d1nga] 14/3/2018 12:58

pay it back Rocka

they need every penny now

[rhomboid] 14/3/2018 12:58

It won’t be business as usual as potentially all suppliers will be putting them on stop ..and some customers will ‘forget’ to put CVR on the weekly BACS run

[typo56] 14/3/2018 12:58

kcr69, appreciate you coming and posting your thoughts on here. Whilst I think there were perhaps quite a few amber if not red flags (which are always a lot clearer to see with hindsight), I never expected this sort of mess so soon.

I note that at 30 April 2017 the company were undrawn on their £30 revolving credit facility and £15m 'Accordion option'. They say they're now fully drawn down under their term loans and revolving credit facility, so they've racked it up a bit in the past 10 months!

I may have missed it but I don't think there's mention of how drawn they are currently on the invoice discounting facility. I assume they must be close to fully drawn, otherwise a £30m VAT bill wouldn't be such an embarrassment. At y/e 30 Apr 2017 it appears the draw down was only £10.7m, is this correct? As you know, I'm thick when it comes to accounts, but is the liquidity covenant tested on debt or net debt minus the draw down? If it's net debt then I think their H1 statement implies the draw down had increased to over £98m at 29 Oct 2017, so may well now be maxed out at £130m.

It begs the question, for a cash generating company, why has it been necessary to draw approximately £164m on the credit facilities within the space of a year?

Please correct me if I've got my figures all wrong.

[s1zematters] 14/3/2018 12:58

does it get more hilarious and farcical than this, the Chief Financial officer spends £100k on shares days before it comes to light that he is not aware of a £36 mill tax bill that the company do not have the cash to pay??

Monty python esc board at CVR

Zero headroom fully drawn down debt-This looks like it could actually be heading for administration.

Will Anheuser-Busch InBev, SABMiller, Heineken International, and Carlsberg Group supply CVR now? Doubtful!!!

[rocka999] 14/3/2018 12:56

I can recall a subsidiary of CVR 3 years ago paying an invoice on our behalf accidentally, they never did claim it back which surprised me, looking now it all starts to make sense !!

[w1ndjammer] 14/3/2018 12:54

It will be business as usual on the shop floor....

WJ.

[r ball] 14/3/2018 12:45

I meant that CVR are a big supplier to Wetherspoons.

[w1ndjammer] 14/3/2018 12:40

notice the CEO and CFO names are missing off the last RNS but are still
on the website !

WJ.

[twixy] 14/3/2018 12:39

Conviviality Plc (AIM: CVR), the UK's leading independent wholesaler and distributor of alcohol and impulse serving consumers through its Franchised retail outlets and through hospitality and food service, announces that Mark Moran, CFO of the Company, has today purchased 120,000 ordinary shares of GBP0.0002 each in the capital of the Company ("Ordinary Shares") at a price of 109 pence per Ordinary Share
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I wonder what his wife will say to him when he gets home?

[kemche] 14/3/2018 12:35

The entire BOD need looking at themselves. The CEO and CFO should be walking out of the door. It has been a calamity and a show of sheer incompetence. Uninvestable with the current board.