Share Name Share Symbol Market Type Share ISIN Share Description
Conviviality LSE:CVR London Ordinary Share GB00BC7H5F74 ORD 0.02P
  Price Change % Change Share Price Shares Traded Last Trade
  -0.6793p -0.67% 101.20p 750 07:18:01
Bid Price Offer Price High Price Low Price Open Price
101.20p 102.00p - - -
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
General Retailers 1,560.1 22.5 10.8 9.4 185.48

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Conviviality (CVR) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2018-03-20 07:18:01101.20750759.00O
2018-03-20 07:18:01101.20750759.00O
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Conviviality Daily Update: Conviviality is listed in the General Retailers sector of the London Stock Exchange with ticker CVR. The last closing price for Conviviality was 101.88p.
Conviviality has a 4 week average price of 96.70p and a 12 week average price of 96.70p.
The 1 year high share price is 431.75p while the 1 year low share price is currently 96.70p.
There are currently 183,282,353 shares in issue and the average daily traded volume is 3,797,926 shares. The market capitalisation of Conviviality is £185,481,741.24.
russell250: well Diana Hunter gone - rns I hope her bonuses are reclaimed plus any wrong doing followed up with criminal proceedings criminal activity eg fraud if ceo is found negligent in role hence complicit to share price crash - can her assets be sought in court ??
russell250: 100m at 10p does seem upper value at 1/10th but better than admin the headroom should eliminate the current trading concerns - which hopefully a new ceo can take the company forward and rebuild confidence. The new share price should bottom out at 20-30p - but hopefully recover overtime with decent operational management -- costs and margin focus a loss of 70%plus is awful but better than 100%
typo56: russell250, I took a look at what happened at HUR. By 'earlier this year' do you mean financial year? If you mean the fund raising last July, it looks like they were able to get out of the pre-emptive offer to all shareholders because the share price in the open market had fallen below the 32p offer price. I'm not sure that's unreasonable as it wouldn't have been a productive use of time or money. Have you read Resolutions 14 and 15 from the CVR 2017 AGM that I posted earlier? I've been told that my comprehension skills are poor, but it reads to me like CVR would have to make a pre-emptive offer to all shareholders. Given the urgency they might try and do it the same way as HUR, doing the placing first and promising to look after the other shareholders later. As with HUR, it might not happen if the price in the open market ends up lower than the placing price, but if that happens the placees have been stuffed haven't they, rather than the ordinary PIs?
mbdx7em21: this is pukka proper analysis. There is more disastrous news today for shareholders in this distributor of mainly alcoholic drinks. I bought some yesterday, unfortunately, after being reassured by a broker note saying that the situation re bank covenants was alright. In fairness, the broker can only report what the company tells him. So if the company doesn't know what's going on, then nor will the broker's analyst. Director buys - the Directors genuinely didn't seem to know that trouble was brewing. This is evidenced by 5 Directors collectively spending about £583k buying shares at around 300p on 5 Feb 2018 - that's only just over 5 weeks ago. Since then the share price has dropped by two-thirds, and will probably drop considerably more when it returns from suspension. The share has been "temporarily" suspended. An announcement came out at 09:55 today; Further Update 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 30.0 million which falls due for payment on 29 March 2018 and which has not been accrued for within its short term cash flow projections. This has created a short term funding requirement. What can I say? It's total incompetence. The finance department at CVR seems to have lost control of the budgeting process, and now cashflow management as well. Heads will need to roll - I think the CEO has to go, once this funding crisis has been resolved. The FD is relatively new, having joined CVR on 30 Oct 2017. In my view that is plenty of time to have got the budgeting & cashflow processes under proper control. So in my view, serious question marks hang over the new FD's competence too. Trading could be adversely affected by this funding crisis; The Company's announcement on 13 March 2018 confirmed an expected range of adjusted EBITDA of between 55.3 million and 56.4 million. To the extent that the current situation creates operational difficulties, this may negatively impact the adjusted EBITDA range. So clearly this funding crisis needs to be resolved quickly, before it does serious damage to the business. Obviously, customers will carry on buying product, because in the short term it doesn't matter to a customer if the vendor is in financial difficulties. The problem lies with suppliers. If trade credit insurance is withdrawn, then they may decide not to take on the credit risk themselves, and could refuse to send in any more goods to CVR. If that can't be resolved quickly, then CVR would run out of inventories, and that's it, the business is gone. So time is very much of the essence, in this type of situation. Banking covenants - the company is currently in compliance with its banking covenants; The Company is currently in compliance with its banking covenants. The next covenant test date is 29 April 2018. What are the bank covenants? The Company is subject to two banking covenants (i) for covenant debt (which excludes any amount drawn down under the Company's invoice discounting facility) to be less than 2.5 times the last 12 months adjusted EBITDA, and (ii) adjusted EBITDA to be at least 4 times the net financial charge. Current position - fully drawn The Company is fully drawn under its term loans and revolving credit facility The last Annual Report shows facilities (provided by a consortium of RBS, HSBC, and Barclays) as at 30 April 2017, as follows; Term loan of £95.8m Revolving credit facility (i.e. an overdraft) of £30m + £15m accordion facility There is also a £130m receivables facility (i.e. invoice discounting) - let's ignore this for the moment, as it's outside the scope of the bank covenants (since it is secured on CVR's sales invoices) The term loan will have had repayments made by CVR since 30 April 2017, of £1.25m on 31 May 2017, £6,361k on 29 Oct 2017, which will have reduced the term loan to £88.2m. There will also be interest charges of about 10.5 months to add to that, which is charged at LIBOR + 2.5%, so I make that roughly £2.4m, so by my rough calculations, the term loan probably currently stands at c.£90.6m. The next repayment is £6,631k, due on 29 April 2018, assuming that the banking arrangements are unchanged from the last Annual Report, where I got the above info. Forecast debt - the company says this today; ... covenant net debt at 29 April 2018 is expected to be approximately 113.0 million (which excludes any amount drawn down under the Company's invoice discounting facility). This seems to tie in with my estimates above of £45m RCF facility (including the accordion) + c. £90.6m term loan = £135.6m, less say 3 days receivables cash in transit of £23.1m, which I've estimated at about £7.7m per day - based on £2bn VAT-inclusive sales p.a., divided by 260 working days p.a.) = £112.5m - which is only £0.5m away from what the RNS says. So I've therefore sense-checked the company's £113m estimate of covenant debt as at 29 April 2018 as being correct. Actually, thinking about it, since those calculations are based on the group having already maxed out its covenant facilities, covenant debt can't go any higher! (unless they exceed their overdraft limit, which the bank would probably prevent, by rejecting BACS runs that would breach the limit. Working backwards from the 2.5 times Net Debt: EBITDA covenant, and the maximum facilities less cash of £113m, this means that EBITDA would have to drop to below £45.2m to breach this covenant. The current estimate is about £56m, but if serious disruption to trade occurs due to the current funding crisis, then EBITDA could plunge, and trigger a breach of bank covenants later this year. So again, time is very much of the essence, they need to get the short-term funding crisis resolved in days, rather than weeks, in my view. Invoice discounting facility - historically, CVR seems to have drawn down relatively little of this facility, which is perplexing. With a large trade receivables book (of £184.2m in last Annual Report - as at 30 April 2017), then surely CVR could relieve the pressure on its maxed-out, and relatively small overdraft, by drawing down more heavily on its £130m invoice discounting facility - which, crucially, lies outside the scope of the bank covenants, so is better (i.e. safer) debt to incur. Unfortunately, today's announcement does not state how much headroom the company has on that particular facility. What happens next? The Company has engaged PwC to assist it in its forthcoming discussions with HM Revenue & Customs and its key stakeholders including its lending banks, credit insurers, suppliers and other creditors, as well as to determine the potential impact of any resulting funding requirement on the Company's adjusted EBITDA expectation and compliance with its banking covenants. Following preliminary advice received from PwC, whilst there can be no guarantee, the Board believes this short term funding requirement will be satisfactorily resolved. To me this seems nonsensical - it's a sledgehammer to crack a nut. In this situation, what the CEO/Chairman should be doing, is ringing round its biggest Institutional shareholders, and do a quick discounted placing for £30m, to get them out of trouble. If they were to offer say 60m new shares at 50p each, I'm sure there would be plenty of takers. Better still, do an accelerated book build, and get the whole thing sorted in a couple of days. If they do that, there wouldn't be any need to have further discussions with various stakeholders, the situation would have been quickly fixed. My opinion - it's quite clear that this business has incompetent management, who need to be cleared out, once the current funding crisis is sorted. The fundamental problem here is not the bank covenants. It's rather that the overdraft facility is too small for what the company needs in the short term, to make this £30m payment to HMRC. Therefore the quickest solution would be to persuade the bank to extend the overdraft by £30m, to give the company breathing space to raise some fresh equity, and to relax the covenants until the fundraising is done. Of course, PwC will love to string out the whole process, as it means lucrative fees for them. It would be much better to send PwC packing, and instead get the house broker to do a very fast, underwritten discounted placing. Then once the financial position has been stabilised, the company could do another equity fundraising, with pre-emption rights, a Rights Issue, so that existing shareholders could also participate, and the balance sheet completely secured. (by the way, I don't charge for my advice to the company, unlike PwC). EDIT: a friend has just messaged me, to make the excellent point that the bank (and potential equity investors) probably insisted on sending in PwC to review the books, before agreeing to extend further credit or new shares. I should have thought about that before criticising management for bringing in PwC. That was a rather daft oversight, since I've personally been in a situation where the bank insisted on the company calling in a firm of accountants to review the books. Banks also can use these reports as justification for withdrawing credit, if the investigating accountants paint a negative picture. End of edit These are fundamentally sound businesses, in my opinion, and the amounts involved here are not huge. So this financial crisis really should be fairly straightforward to solve - if the company had competent management. The trouble is, they clearly don't have competent management. Anyway, I hope they manage to resolve matters quickly. Being a holder of the shares, since yesterday afternoon, I'm braced for a loss of at least 50% on the price I paid. Thankfully my position sizing rules mean that I never take large positions in companies with a lot of debt. So the likely losses here for me, even if it goes bust, which I think is unlikely, won't be disastrous. Another solution to short term funding issues, is to get your credit controller on the phone to the biggest customers, and offer them a 1% discount early payment discount, to settle everything on the account early. So if say £50m in customer invoices could be paid more quickly, then that would buy some breathing space, at a relatively small cost of £0.5m. - paul scott.
dagsteeth: It’s not in the interest of shareholders, creditors ir HRMC to let this go. Expect a very rapid capital raise at 50p/share to raise £50m accompanied by complete management change. Expect lawsuits galore. Directors, NEDs, auditors, Nomad etc. The placing agreement in December will see shareholders have rights. How far back does it go. Was the sale of Matthew Clark fraudulent. Can the company sue the vendors? Following a brief bounce back, company will then be bid for by another distributor. At least by not being suspended the hedge funds can’t drive the price to where a placing can’t be effected in adequate terms. For pi’s it ain’t c&&p but I’d buy the rights when they come to average down and look to trade out thereafter. If the company goes for a placing rather than a rights issue will be harder since the share price will bounce back very sharply. Mind you to raise £50m don’t think they can disapply preemption rights. Ps the dividend is due to be paid on Friday. Clearly not now!
bulltradept: IC View: "One must wonder how this error was missed by management. At the time of the results in January chief executive Diana Hunter told Investors Chronicle margins “were the last thing investors had to worry about”. Even broker Shore Capital, which reissued its buy position on Conviviality two weeks ago, says it’s “hugely disappointing”. In other circumstances, we might be trying to find a way in which a share price drop would offer a cheaper entry point for would-be investors. But frankly, our faith in management is shattered and if margin weakness persists, our confidence in a near-term re-rating is low. Sell at 103p." Last IC view: Buy, 305p, 8 March 2018 Better late than never eh...
chopp1: I think the answer lies in the appointment of mike Moran in Oct 2017.As an ex cfo of a large company, I am guessing he discovered some financial misdeeds in the accounts which he is now throwing into the kitchen sink. This could have been as suggested a failure to recognise the full cost of discounting or potentially an error in assumptions of realised margins in the wholesale arm which proved optimistic. It was however extremely naive of the directors to issue such a vague statement yesterday which would only punish the share price heavily. Shareholders rightfully expect to be told the nature of this “error” and its impact on future forecasts of profitability. Anything less is treating shareholders with contempt. The only saving grace is that both the cfo and ceo bought heavily today. I suspect we are seeing a new broom sweeping out the bad news before he can be blamed for it, but I may be wrong......
masurenguy: Graham Neary's view. "I'll stick to my guns and continue to suggest caution here, even though I have usually been wrong by doing this in the past. The profit figures are said to reflect "the phasing of cost synergies into the second half of the year". I think today's share price move reflects simple disappointment in the profit miss, and also maybe some fear that the cost over-runs and reduced margins won't be entirely offset by the cost synergies anticipated in H2 and beyond. My major concerns are the low-margin nature of the work it does and its partially debt-fuelled expansion. The constant use of "exceptional items" and the focus on adjusted numbers also leave me cold. Additionally, I have a concern about its possibly excessive use of share-based payments. In the twelve months to October 2017, it generated nearly £18m in profits, and spent £3m of this on share-based bonus payments to its managers. Finally, I think that today's H1 results were a profit miss, which is confirmed by the share price decline. But with respect to results versus expectations, today's statement has merely expressed confidence that results for the full year will be in line. It doesn't actually say whether or not the H1 results were in line with the company's prior expectations. Would it be much trouble for this to be included? Brokers are now forecasting that net debt will reach almost £150m by the end of the current financial year."
johnwise: Took a position on 18/7/2016 the day of Conviviality PLC Final Results Results morning it opened up 10 pence so had to pay £1.88p sold £2.28p.. I almost sold earlier as Market Makers really manipulated about with this one, repeatedly selling small amounts of shares 1, 3, 7, 14, 45, for several morning, consequently the price was down each time they performed
mrmark01: i have been into a few BB stores over the xmas break, trying to prop up the the Share price lol and I can't say that the prices on offer where any better than the big super market promotions.
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