Conviviality Share Discussion Threads

[opodio] 17/3/2018 22:07

sky 10p placing

[rich1980p] 17/3/2018 21:12

Sandy, auditors have no obligation at all to consider quality of financial infirmation they purely look backwards and see if what has been reported is correct

[typo56] 17/3/2018 20:33

£150m now!

The Telegraph:

Conviviality is preparing to beg shareholders for as much as £150m. PwC is advising the company and its banks have enlisted Deloitte. The cash call will help it meet an outstanding tax bill and provide much-needed funds to keep its shelves stocked with goods.

Management is confident investors will come to the rescue. However, insolvency experts cautioned that Conviviality’s troubles have erupted so quickly that backing may be hard to secure.

Failure to source further financing quickly would almost certainly force it into administration.

[tradejunkie2] 17/3/2018 19:57

Good luck folks.

[sandy133] 17/3/2018 19:42

If as seems quite likely this goes bottom up the legal actions will run for years.
I also think that there will be another very close look at Auditors and Auditing,one thing that Auditors have to report on is the quality of the financial information.
Clearly in this case the financial information that the directors had was of little or no use.

[tradejunkie2] 17/3/2018 18:34

Typo56, squeaky bottom times for investors here.

[my retirement fund] 17/3/2018 17:50

It was insolvent when it floated

[typo56] 17/3/2018 17:24

The Times:

"Investigators at PWC are working this weekend to find out what lies beneath the financial errors. The rights issue will go ahead if the problems are found to be the result of “human error” but not if they appear to be more systemic."

Oh!

[richj5000] 17/3/2018 16:37

A lot of people will have piled in after the director's buys, including me. I was lucky to get out before the suspension but a lot of people didn't.Just unbelievable really.

[buoycat] 17/3/2018 13:30

I'm not sure a severely discounted and dilutive placing would be in the interests of large shareholders, so don't see why they would back it. They get shares on the cheap but at a cost to their existing shareholding and sentiment is damaged enough already.

[buoycat] 17/3/2018 13:17

I'm not sure a severely discounted and dilutive placing would be in the interests of large shareholders, so don't see why they would back it. They get shares on the cheap but at a cost to their existing shareholding and sentiment is damaged enough already.

[r ball] 17/3/2018 13:04

I suspect the shareholders have been wiped out.

[tradejunkie2] 17/3/2018 12:36

Given the profit warning and subsequent tax bill it looks like staff don't know how bad it is given the accountants are on the case.

If it's £100m and 10p then all investors know already the accountants have discovered things are far worse than imagined.

If it's not as bad as it seems say £20-£30m offer at 50% discount wouldn't go down to badly.

Anything more then shareholders have been shafted.

Good old AIM.

[samdb] 17/3/2018 08:56

I would take up my full rights at 40p if that was an option.

[andyj] 17/3/2018 08:41

After being away for a week, as a previous holder, I read the RNS with utter disbelief. The incompetence is staggering. I recall reading through their website as a shareholder and being concerned by the proliferation of buzzwords. After several hours of reading I was less clear about the details of their business model than before I began. I always find such obfuscation a warning sign and sold my holding shortly afterwards. As I cautioned in my last post too many here rushed to declare them a bargain. Incompetent managers rarely make only one error and rarely learn from them and so it proved.Indeed the incompetence is so extreme one wonders whether it can be believed. I hinted with some irony in my previous post that the board buying between warnings may have been a smokescreen to deflect attention from much greater profits made from shorting. There must surely be a full investigation into their financial affairs. It really is hard to believe that management could be so incompetent. After the recent fall, buyers flooded back in search of a bargain, but the abyss was waiting and into that abyss long suffering holders now fall.I suspect there will be a deluge of sellers when they return given no one has yet been able to sell following the news and as unlikely as it sounds I also suspect that the rush to exit will leave the price finally, in bargain territory. Although of course that assumes the replacement of the management and that they remain solvent.

[richj5000] 17/3/2018 08:11

DH, Actually I'm just an average punter who decided to give his view. I've been burnt many times on POS companies like this and won't be buying if it ever returns to the market.Probably more to discover yet so the outcome will be interesting.

[value viper] 17/3/2018 07:03

Sorry Guardian posted earlier10p ? Surely not40p min ? Shareholders (backers) also need to try and attach the right type of message (if possible) for the future.

[value viper] 17/3/2018 06:57

https://www.theguardian.com/business/2018/mar/16/conviviality-uk-drinks-retailer-seeks-rights-issue-after-catastrophic-financial-errors