Conviviality Share Discussion Threads

[typo56] 21/3/2018 18:02

£125m gross placing
Token open offer

Net debt was expected to be GBP150.0 million as at 29 April 2018.

Now after placing of £125m (gross) net debt will be "below GBP100.0 million."

How below? I make that it could be some £70m -£80m adrift (because the £150m was pre the divi saving)!

[turbotrader2] 21/3/2018 17:54

And these birds have the cheek to complain about pay gap


Look at the state she’s left this in

More strategy = less nail appointments

Lol

[w1ndjammer] 21/3/2018 17:47

not that old cherry again, i suppose the average £32 mill per week
turnover has dried up as well.

WJ.

[tinker49] 21/3/2018 16:56

Cash required to pay suppliers who are now cash with order

[w1ndjammer] 21/3/2018 13:59

well her picture has been taken down from the board of directors
section on the website...

the CFO is still there with a grin like a cheshire cat,reminds me of one
of my tenants, he owes me money as well..

WJ.

[york investor] 21/3/2018 13:08

I do hope Adams gets a deal done soon, every day that goes by leaves suppliers, customers and employees losing confidence. LWC (smaller independent distributor) reporting strong sales. They make 10mill net on 250mill sales, so with right management we should be making 60mill!

[tradejunkie2] 21/3/2018 10:53

russell250, company management don't have any clues

[kemche] 21/3/2018 10:36

Russ, read between the lines.

[russell250] 21/3/2018 10:30

why equity raise so high ??

only month ago none mentioned

even 5.2 million and 30 million doesn't require £100m even with free cash flow protection

still to hold final divi and save over 10 million

any thoughts

reduce debt??

[spooky] 21/3/2018 10:21

One point i would make is that if these announcements had all been made in one go when the share price was £3.00, i don't think any one would be talking about anything like 10p.As an aside,10p would only make sense to current shareholders if they could maintain their share of the equity.

[typo56] 21/3/2018 09:42

I agree 10p would feel like taking advantage. But then if Diana Hunter were buying a distressed distributor that had gone into administration, you'd complain if she didn't work hard and get the best price.

If my sums are right, and if it's a placing and it's as high as £130m, then the difference between 10p and 20p is a grab of 88% of the equity, or 78%. Makes it seem rude to haggle!

[buoycat] 21/3/2018 08:21

Can't see a raise at much below suspension price in anyone's interest. Talk of 10p is just scaremongering and would only serve to dig the company into an even bigger hole.

[russell250] 21/3/2018 08:12

Carpetright has a small raise of £12.5million in new shares to a existing shareholder

company close to a CVA long leases on non profitable sites - in far worse position than Conviviality

the raise at 40.6p was at last nights close

if there was a raise by cvr anywhere near the suspended price would be a like first wish from rubbing golden lamp
Carpetright up this morning on news

The forthcoming raise in a share issue will be interesting as we do not know what other baggage pwc has uncovered - but at 10p would be taking advantage i feel

we see - hopefully a result like carpetright

[samdb] 20/3/2018 21:50

I'm going for £100m at 65p.

[bulltradept] 20/3/2018 21:11

Not quite sure I agree with that given what information is available to the retail investor for a lot less than 12k a year! I would also state as retail investors another large advantage you have is position sizing.

[r ball] 20/3/2018 20:25

As retail the only possible way to compete on equal terms is to have terminal. With subscriptions costing over £12k a year you need a portfolio north of £1m to justify. As retail your big advantage is that you can sit the market out.

[bulltradept] 20/3/2018 18:51

It's at times like these you get to realise that as retail investors we will always be the last to know. Hence why you've got to get that position size correct otherwise the market can be a very nasty place.

[r ball] 20/3/2018 18:35

Oh..they might be left with an anti embarrassment stake but that's about it.

[r ball] 20/3/2018 18:34

Whichever way you cut it this company is dependent on its lenders and the shareholders will be almost wiped out.

[typo56] 20/3/2018 18:27

russell250, the various documents are still on the HUR website. The placing only required approval as an ordinary resolution, which can I think be passed by a simple majority. Unsurprisingly, given the major holders were taking part in the placing, it got passed!

So perhaps take a look at the major holders in CVR and if they'd want to participate in a placing.

Unfortunately a lot of PIs tend to use nominee accounts and don't attempt to contact their brokers with voting instructions, so it's even easier to push stuff through.

[sharesoc] 20/3/2018 18:15

New blog post: Conviviality

[russell250] 20/3/2018 17:56

typo - shares fell massively as the institutional offer was far lower than what a rights issue could have attracted
raised so much money - diluted shares - price never recovered to date

[typo56] 20/3/2018 17:46

russell250, I've just had a glance at the HUR website and found it had a similar pre-emption resolution to CVR's. This last AGM letter covers it:-



From what I can see, that big placing that they dropped on shareholders in June last year (with a promise of a very token pre-emption for ordinary shareholders that never materialised) had to be passed at a General Meeting held on or around 21 July. I assume it got passed. So you could be right that a similar stunt could be pulled here.