Conviviality Share Discussion Threads

[thepsychic] 19/9/2013 12:53

I wonder why this is dropping whilst all else is rising.

[rathlindri] 16/9/2013 10:56

wassup.....

[funkmasterp12] 11/9/2013 13:00

Delighted to see Robbie Burns tipping these - I have huge respect for him and its always nice to be in a share which he tips!All looks good here.

[battlebus2] 11/9/2013 09:05

Good to see you here saucepan, this imv is one of the safest long term holds with a more than decent dividend to compensate for any bumps in the road.

[saucepan] 11/9/2013 09:02

Hi folks. I went long here today; hopefully with a view to a long term hold, provided the price continues to move in the right direction.

Cheers :-)

[douglasallen] 10/9/2013 09:12

Difficult to comp this share to other listed shares. I think the nearest comparison is Majestic wine.

However, looking at yields in the retail sector the highest is about 3.4%...Conviviality looks very generous with yield of over 5pc and I would exoect the price to rise and yield to fall in line with retail shares.

3.4% yield for CVR would imply a price of 226p. Obviously a lot of other factors in the equation, but in the short term looks like there is a lot of upside in this share.

[ddav] 09/9/2013 17:12

Has to be bought even cheaper in the first instance,
Big profits through bulk buying discounts.

[douglasallen] 09/9/2013 17:10

@gsw

True, but the price increases will be across the board and affect convenience stores, supermarkets, pubs etc...so actual impact probably not huge. Some consumers will buy less, but others will down trade from pub to cheap stores. So net:net probably not a huge difference if it was enacted.

Additionally, the govt appears to have moved its focus elsewhere hxxp://www.express.co.uk/news/uk/383912/Government-accused-of-weak-leadership-as-crackdown-on-cheap-alcohol-is-dropped


But ultimately a risk nonetheless.

[gswredland] 09/9/2013 16:34

What about possible government cuts on cheap booze?

[douglasallen] 09/9/2013 16:09

I'v been building a position here over the course of the day.

Like the story, good company £100MM mcap lots of potential.

Circa 5% yield for a thriving business model unheard of. I feel this is one of those businesses that the market loves, its easy to scale up and grow profits. Acquisition of 22 stores in SE/ London is a big step as the company is on track to execute on its plans to expand in the South.

Bargain Booze consistently selling booze cheaper than the supermarkets - will continue to thrive imo.

I think this could end up being like a Majestic Wine with a £300MM mcap.

[battlebus2] 09/9/2013 15:44

Looks like those tips are taking us to new highs again :))

[ddav] 09/9/2013 09:11

ADVFN might have drunk some -- 'cause all buys this am are marked as sells!

[orb1] 06/9/2013 13:00

Further tips/buys this week from Robbie Burns (Naked Trader)and the impressive 'Cambridge News' blog are persuasive...

[fruitfly2] 06/9/2013 12:56

Robbie Burns likes it.



And the other recent buy is a recent issue Conviviality (CVR) which cost me 139p.

This is a clever company which sells bargain booze across the north and this week it's put in a bid to buy Wine Rack.

There's plenty of mark up even in knockdown booze - booming profits here should result in a higher share price unless the management knocks away a bit too much of its own product..

[nw99] 05/9/2013 10:49

Very nice write up

[funkmasterp12] 05/9/2013 09:27

Yeah just seen the Shares write up, lovely!

[battlebus2] 05/9/2013 08:59

Great thanks nw99.

[nw99] 05/9/2013 08:40

Tipped as a buy by shs mag his am

[thepsychic] 02/9/2013 10:34

Aren't the results due today?

[funkmasterp12] 02/9/2013 10:04

Yep - it's a great acquisition. Good brand/recognition, albeit localized. Moving into the South is key here and if they can issue a decent challenge to Majestic they'll be laughing.

[battlebus2] 02/9/2013 07:21

Yes Funkmaster and it looks a good deal to me, 22 stores mostly in greater London-

Conviviality Retail Plc (AIM: CVR), one of the UK's largest franchised off-licence chains which listed on AIM at the end of July, is pleased to announce that on 30 August 2013 it entered into an agreement to acquire the entire issued share capital of L. C. L. Enterprises Limited ("L.C.L") for a total consideration of GBP1.65 million in cash. Trading as Wine Rack, a retailer of wine, spirits, tobacco and related products, L.C.L operates 22 stores, predominantly in Greater London.

The Company's Admission Document set out Conviviality's ongoing strategy which included increasing its focus on its wine offering as well as penetrating further into the South of England from its heartland in the North West and considering acquisitions in complementary market segments to assist growth in mid-affluent catchment areas. The acquisition of Wine Rack is consistent with that strategy.

The Board believes that the purchase of Wine Rack will enable the Company to enhance its presence in the South of England, as well as further broadening its wine offering in many of its existing stores and gaining a further fascia with a strong brand and customer following.

Wine Rack

Wine Rack is a retailer of wine, spirits, tobacco and related products with 22 stores, predominantly in the Greater London area.

The current Wine Rack business was acquired by its management in November 2009 who have grown the existing stores, expanding the business from 13 outlets to its current portfolio of 22 stores and developed an e-commerce platform.

Wine Rack's extensive range of wines and spirits has won numerous awards and plaudits. The Directors are confident that the quality of both Wine Rack and Conviviality's ranges will develop further by leveraging the increased buying power of the enlarged group and the experience of Susan McCraith, Master of Wine (who is a consultant to Conviviality) to deliver value to Wine Rack and Conviviality's respective loyal customer bases.

The Board believes that there is an opportunity to roll out a greater number of Wine Rack sites, both in the South and in other parts of the country. Both new and existing stores will benefit from combining the Wine Rack brand with Conviviality's greater buying power, marketing expertise and logistics experience.

It is currently the intention that the Company will maintain ownership of the existing Wine Rack stores and that the existing store teams and Ron Booker, the Regional Operations Manager, will remain with the business. Conviviality expects to offer the opportunity to franchise the format in the future and it is also intended that additional franchised stores will open using the Wine Rack brand.

In its audited accounts for the year ended 31 March 2013, Wine Rack generated revenues of GBP11.28 million, EBITDA of GBP0.395 million and a profit before tax of GBP0.18 million. Net assets as at 31 March 2013 were GBP0.48 million. At completion Wine Rack had no bank or other forms of loan indebtedness.

Terms of the Acquisition

The consideration for the acquisition of Wine Rack is GBP1.65 million in cash and is being settled out of the cash resources of the Company.

Diana Hunter, Chief Executive Officer, Conviviality Retail Plc, commented:

"Wine Rack fits perfectly with our stated strategy, outlined when we floated on AIM.

"This acquisition accelerates our expansion into the wine market, provides the Company with additional expertise that will benefit our Franchisees and increases our footprint in the South of England, including adding scale in the important London market. We are looking forward to welcoming the current store teams and Ron Booker to Conviviality and we look forward to taking the Wine Rack brand from strength to strength with their involvement.

[funkmasterp12] 02/9/2013 07:04

Acquisition RNS out today (Wine Rack)

[battlebus2] 23/8/2013 22:16

Due a breather i think especially after the tips etc. It's a long termer with a high yield but when to invest is always hard to answer.

[scrabble1975] 23/8/2013 21:53

Seen some adverts appearing on TV for Bargain Booze...Bot invested here yet. Do we think we've reached the top for a while following the IPO?

[battlebus2] 19/8/2013 13:38

That might explain why they are bargain booze and undercut the supermarkets.