Conviviality Share Discussion Threads

[1he patriot] 30/3/2018 08:48

How do you they are top investors?

Do you know their rate of return for last 10 years?

[topvest] 29/3/2018 21:17

Unbelievable how fast this has all unravelled here. Quite a few top investors have been caught out.

[septimus quaid] 29/3/2018 18:15

The directors must have had a Captain Smith moment when he realised, irrespective of what he did next, the ship was going down.

...or maybe they had been living in denial for weeks, praying for a miracle.

[tradejunkie2] 29/3/2018 16:39

No wonder the big boys panic sell on profit warnings because of events like this!!

I now get it fund managers!!

Am l right or am l right?

[hpcg] 29/3/2018 16:37

Too much import is put by director and management purchases after profit warnings, poor results etc. Following people that have demonstrated their incompetence is irrational IMO. It is almost always a fraction of their remuneration, and in any case supporting the share price is to their benefit also.

Also, a reminder that most equity investors are completely and willfully ignorant about debt. This includes fund managers. A company without debt is often able to soldier on even in distress, and has the ability to raise new equity which it can use.

Companies will continue to go bankrupt, that is how business works. If that company is publicly listed then someone has to lose. Our only duty to ourselves as investors is to ensure that it is someone else that suffers the loss, and our duty to the community is not to reward companies which load up on unsupportable debt.

[tradejunkie2] 29/3/2018 16:36

That's half my net salary
Allot of dough.

[adejuk] 29/3/2018 16:35

i have only £5k in and i can afford to lose it
however, i haven't heard any singing yet and have not lost my sense that the phoenix may arise

[typo56] 29/3/2018 16:04

Forget it. It's over for shareholders.

[york investor] 29/3/2018 15:18

positive comments from MD of Hatch Mansfield , asking industry to rally round , think its a bit 11th hour but its not over until its over?

[andyj] 29/3/2018 13:46

21 days from warning to failure. Not sure what lessons can be learned from that except to not trust the management of small companies who try to be bigger ones by acquisitions. A disgrace beyond that of Carillion and although I have not lost, I hope management are not allowed to simply walk away without answering some serious questions.

[kingston78] 29/3/2018 12:54

Operation and Finance go hand in hand. Finance people are normally of the conservative type, and they are the ones who should advise senior directors who might become over ambitious or aggressive in their business plans. A Finance Director is only as good as his Financial Controller acting as his right hand man. The right hand man knows the details probably more than his superior. It is therefore important for companies (private or public) to have a very good accountant on board.

I don’t know how accountants and auditors are trained nowadays. I have not come across many accountants who I would say are bright and sharp. Computerisation actually makes them less sharp, and some of them appear to lack a grasp of basic accounting and business principles.

It is really a sad state of affairs that if the internal people don’t know about their business and financial affairs. How do you expect brokers and investors to make an investment decision? In the case of Conviviality, brokers were still recommending the shares when the price dropped from £4 to £3. More to the point, the Finance Directors bought more than £100,000 worth of shares a few days before the company’s share suspension. Now it is calling in the administrators.

No businesses collapse as rapidly as Conviviality. Worsening trading condition only plays its part to some extent, but the lack of financial discipline is the main culprit. How could they forget a £30 million tax bill that was due, and not included in their cash flow forecast? All the flowery words in its previous annual reports mean nothing. It is not the only company that is misleading the public.

Independent executives may have business experience but usually lack accounting and finance knowledge. They rely on the Finance Director. All hell breaks loose if he is not up to the job. I suppose personality plays a large part to determine who has more influence in the boardroom.

[castleford tiger] 29/3/2018 12:25

I agree York we were led to the slaughter

[york investor] 29/3/2018 11:37

reports circulating that a major brewer is set to save conviviality ! (retail express) but i suspect this will be pre pack admin paying just enough to pay out banks and suppliers. Written off my investment in CVR now, but still so angry with RNS meaning I bought more in last 2 days before suspension, doubling my loss now!

[theobaldr] 29/3/2018 11:20

I feel for all those people who piled in following the director's buy.I sold just before market close on 13th March but I know a lot of people didn't.Very upsetting to think that top management could be so incompetent.

[sandy133] 29/3/2018 09:48

What I do find shocking is the absence of announcements from the companies where the Chairman is a NED.The fact is that what has happened is totally unacceptable and the Chairman of the company has to carry the can.He should have resigned his other NED jobs last night.

[ellemaitch] 29/3/2018 09:11

BA , HMRC comes behind secured creditors and debenture holders . HMRC no longer have preferential status and are ranked in line with other unsecured creditors

[clocktower] 29/3/2018 08:38

Sadly the AIM regulators never take action against directors and just continue to hide and take no responsibility for their own lack of action pretending the market is regulated. The whole system is full of parasitic Lawyers, Financiers, Bankers and Accountants that all feed off the judicial criminal system.

Fortunately never traded these but my heartfelt commiserations to those that have lost
money.

[pre] 29/3/2018 08:31

shocking rns...can't believe directors were buying shortly before vat rns and now we are talking administration in a couple of weeks?? Doesn't stack up imo.

[phowdo] 29/3/2018 08:20

MRF, In a way it's a good job it was suspended otherwise they would have been averaging down into oblivion.

[tiltonboy] 29/3/2018 08:17

MRF,

IN this case there will be a huge amount of retail investors as it was widely bought for IHT relief. We sold ours at 396 when the valuation looked far too stretched, and with wafer thin margins, it didn't add up.