Conviviality Share Discussion Threads

[adejuk] 16/3/2018 16:09

only have 5k so don't read but i expect this to double in 6 months

[typo56] 16/3/2018 16:05

No pre-emption rights then? I'm sure you guys understand all this better than me. From 2017 AGM...

Resolutions 14 and 15: Disapplication of pre-emption rights
Generally, if the Directors wish to allot new shares or other equity securities (within the meaning of Section 560 of the Companies Act 2006 (“Act”)) for cash, then under the Act they must first offer such shares or securities to shareholders in proportion to their existing holdings. These statutory pre-emption rights may be disapplied by shareholders.
Resolutions 14 and 15, which are proposed as special resolutions, renews similar powers given at last year’s AGM, and reflects the revised recommendations of the Pre-Emption Group’s Statement of Principles. If passed, these resolutions will enable the Directors to allot equity securities for cash without having to comply with statutory pre-emption rights, but this power will be limited to allotments:
a.
in connection with a rights issue, open offer or other pre-emptive offer to ordinary shareholders and to holders of other equity securities (if required by the rights of those securities or the Directors otherwise consider necessary), but (in accordance with normal practice) subject to such exclusions or other arrangements, such as for fractional entitlements and overseas shareholders, as the Directors consider necessary;
b.
up to an aggregate nominal amount of £1,728.9408 (which represents approximately 5% of the issued ordinary share capital of the Company as at 4 August 2017, being the last practicable date before the publication of this document); and
c.
in addition to the authority referred to in (b) above, up to an aggregate nominal amount of £1,728.9408 (which represents approximately 5% of the issued ordinary share capital of the Company as at 4 August 2017, being the last practicable date before the publication of this document) for use only for the purposes or financing or refinancing an acquisition or capital investment of the kind contemplated by the Statement of Principles on Disapplying Pre-Emption Rights published by the Pre-Emption Group in March 2015.
The Directors intend to follow the provisions in the Statement of Principles issued by The Pre-Emption Group (as updated in 2015) regarding cumulative usage of authorities within a rolling three-year period. These principles provide that a company should not issue shares representing more than 7.5% of its issued ordinary share capital for cash in any rolling three-year period without prior consultation with shareholders, other than on a pre-emptive basis or in connection with an acquisition or specified capital investment.
If given, this power will expire at the conclusion of the Company’s next AGM or on 7 December 2018 (whichever is the earlier). It is the Directors’ intention to renew this power each year.

[russell250] 16/3/2018 16:02

wj

you are correct the fund raise could be purely institutional

like when hurricane energy raised money earlier this year - that time it screwed pi

this time a save would be fine better than admin

still think 40p tops

The ceo still has to go

[w1ndjammer] 16/3/2018 15:42

Typo

the pi does not need to participate, the share price will drop to the funding price

as the greedy insties sell for profit....

so 20p or 110p only 110 will stop them from selling down


WJ.

[bullet ant] 16/3/2018 15:35

I have been shouting Rights Issue at 40p-50p.

£25m will not be enough, even with £8m div cancellation.


Institution Investors will not buy placement shs if they are not making an immediate profit on it. what kind of fools would they be otherwise? Parting with 50m and potential losing an immediate £20m in a stampede.


what planet is assJammer on?

R.I at 5% premium? Can someone call the NHS we have a loon on the loose.



This is a busted flush. I am even saying potentially accounts re-statement for last many years.


THIS IS BUST

AND YOU HEARD IT FROM THE ANT aka the "One".


My free advice, do not average then to see 0p. There are other aim dogs about, this is one wounded and will die.


BA
Stealing is good.

[york investor] 16/3/2018 15:29

do we know if the HMRC 30 mil is an additional charge or just an amount that needed paying earlier than expected in which case it would affect cashflow but not profits,
It would seem that with the increase in business and reduced margins CVR have just run out of working capital. Not sure if 25mil would be adequate not even 1 weeks turnover?
Id be very happy at a fund raising at 75p (i have 20k shares at about 120p) would be a hefty loss for me , but thought id lost the lot on weds.

[york investor] 16/3/2018 15:29

do we know if the HMRC 30 mil is an additional charge or just an amount that needed paying earlier than expected in which case it would affect cashflow but not profits,
It would seem that with the increase in business and reduced margins CVR have just run out of working capital. Not sure if 25mil would be adequate not even 1 weeks turnover?
Id be very happy at a fund raising at 75p (i have 20k shares at about 120p) would be a hefty loss for me , but thought id lost the lot on weds.

[russell250] 16/3/2018 15:27

the interim dividend has been stopped

still have final dividend to stop

recover any board performance bonuses


fund raise will be in 40p - 45p range if lucky

i would be chuffed with that - better than administration

[typo56] 16/3/2018 15:26

I'm also guessing £50m min @ who knows. 50p perhaps? That's an additional 100m shares on top of existing 183m.

Don't forget, they'd be advisor fees. They charged £1.5m when £30m was raised back in December.

[value viper] 16/3/2018 15:19

£8 million dividend saving, bank flexibility to assist but agree I'm guessing up to £50 million to keep the wolf from the door.

[typo56] 16/3/2018 15:16

Is that all? £25m would only be enough to pay HMRC.

I must admit my fear was they'd find something else in the accounts that would sink them. Today's statement is at least 'no news is good news' in that respect. Perhaps more on Monday.

[tsmith2] 16/3/2018 15:00

I think we may get a £25mn fund raise at say 75-85p.

[theobaldr] 16/3/2018 12:24

It would appear that the CFO is a Chartered Accountant so no excuses then.

[typo56] 16/3/2018 12:08

CC2014, if you want to dig a bit deeper, have a look at the y/e 2016 leveage covenant, as stated in the 2016 AR and then the 2017 AR. Then perform the calculation yourself.

[joe say] 16/3/2018 11:50

WJ - points taken

Per the accounts (can they be believed?) the duty on the year end stock would be some £39m (on £94m stock)so I'd agree that this is most probably the issue

However as one that does not know this sector its odd that duty isn't really referred to within the report (other than the proportion of a bottle it makes up) - why not in the COS analysis or cash flow given the likely scale of this?

[cc2014] 16/3/2018 11:28

I don't hold this stock but I had a few moments to look at this. I hope this post is of some use.

1. They weren't using all their lending facilities a year ago and now they are.
2. They can't pay the VAT bill.
3. The old FD left. Why?

So, forget the VAT bill for the moment. The fact that cash is disappearing suggests they are running at a loss. It can't be that the cash has been spent on stock else that would be input VAT and keep the VAT bill low.

suggest you try and find out why the old FD left. That's the key.

I wonder if they have problems counting their stock? Company decides to reduce stock levels which reduce input VAT but output VAT stays the same resulting in high VAT bill, but don't account for the reduction in stock appropriately? The sort of thing a dodgy accountant could easily do to try to keep things looking OK for a while.

[w1ndjammer] 16/3/2018 11:03

adding to that it wouldn`t be the first tine HMRC has demanded an overly inflated
sum of monies, it happened to me once over the difference between new build housing and old stock.........

had they been correct i would have been sunk..

WJ.

[w1ndjammer] 16/3/2018 10:58

joe say

they were your words " a material VAT creditor? " i was merely pointing out
the number is too large to be VAT.


WJ.

[edmondj] 16/3/2018 10:04

The "finding requirements" have even found their way into latest journo piece:

Today, Conviviality provided an update to reassure shareholders, saying PwC was undertaking a review of the business and its future finding requirements, with that work "progressing well".

hxxp://www.cityam.com/282391/bargain-booze-owner-conviviality-mulls-equity-fundraise

[bullet ant] 16/3/2018 10:00

AssJammer rightly said it's not only VAT.

Import taxes, Custom & Excise could be more than VAT component.


6-7 figures salaries could have been paid with our Taxpayers tax money.

We want blood.

NHS is dying because of lack of funds.

We want Blood.


BA
Stealing is good

[joe say] 16/3/2018 09:55

Windjammer - you say you don't think it's VAT but the RNS said

Further to the announcements made by Conviviality Plc on 8 March 2018 and 13 March 2018, the Company yesterday identified a payment due to HM Revenue & Customs of approximately GBP30.0 million which falls due for payment on 29 March 2018 and which has not been accrued for within its short term cash flow projections.

Which suggests VAT, duties and/or Corp Tax

But you would seem to suggest that they've got the updated RNS wrong??? - Surely, they couldn't !!!!!

[fillipe] 16/3/2018 09:51

That typo in today's RNS - unbelievable, inexcusable and typically par for the course at CVR.

f

[bullet ant] 16/3/2018 09:40

So it looks the board getting paid indirectly from Taxpayers money VAT/Custom Excise Duty, 6 and 7 figures salary.

We taxpayers have an issue with that.

SFO should smash the doors to raid the premises, their homes and seize assets. Sounds like Nigerian scammers to me.


Any II putting money now could be complicit in a cover up !!! Oh no, replacing taxpayers funds after it's been uncovered to be missing is a big no no no. Mr Judge will not accept repayment without prosecution.

Hope this helps


BA
Stealing.

[theobaldr] 16/3/2018 09:27

Can't have been that easy!