Coral Products Share Discussion Threads

[clocktower] 12/11/2024 07:19

At least JG is cutting at top of the tree that outgrew its roots and place in the forest.

How quickly can he turn disaster into survival is yet to be determined.

Back down the ladder now that the pruning has been done.

[clocktower] 25/10/2024 09:26

Less transparency as well and although they like to say AIM and listed companies are regulated, in practice they clearly are not.
Still, small investors do with an honest Chairman like Joe do get more info than if it was de-listed.

[pugugly] 25/10/2024 07:37

Plenty of PE cash available and estimated annual cost of listing some £500,000 p/a
"BDO and the Quoted Companies Alliance estimate the true cost to be more in the region of £500,000 a year.” So cost of listing could be as much as 10% of market cap- QED.

[clocktower] 25/10/2024 07:10

Less access to funding if that was on the cards. No liquidity, shares collapse even more.

Better a raise at say 3p to pay off debt.

[pugugly] 25/10/2024 06:23

Market cap only £5.5M - Biggest potential cost saving would be to delist - Why not?

[clocktower] 25/10/2024 06:09

Well he didn’t last long, another one of JG’s appointment errors, though putting a spin on his resignation.

History repeats itself and things get worse before they get better, if they do this time.

Anyway he Lanced the boil, but did he have a golden handshake to go without a fuss and a good CV.

[clocktower] 23/10/2024 15:47

I suspect they gave a more upbeat talk today to those present and they have been the buyers today.

I agree with you EC.

Paying a dividend when you have had to sell off property to lower a huge debt that is still outstanding, with business confidence falling is crazy but Joe wanted his dividend. Along with a forecast loss for the year.

[effortless cool] 23/10/2024 15:40

A risky choice to pay that dividend with a very weak balance sheet that is only going to get worse over the course of 2025.

I would go so far as to say it is irresponsible.

[clocktower] 16/10/2024 14:51

So to date it seems (as expected) the CEO has not bought in, as I suggested, I reckon. there will be a raise to reduce the debt pile, and only then may he buy shares is my guess,

3p is my guess.

[clocktower] 15/10/2024 10:24

By the time the results for the year are out will this even be 3p I guess it could return to the levels JG first jumped in,when he saved the business, in light of yesterdays RNS about a loss this year. Will another white knight turn up.

How big will the loss be to add to that £9 million debt, no wonder the selling continues.

" the Company now anticipates a YoY margin shortfall of up to 500 basis points and as a result Group trading for FY25 is now expected to record a loss."

[clocktower] 14/10/2024 13:53

base7 why would they buy now, there is no upside until next year at the soonest if at all.

Not only that they would wait until they raised funds.

Joe might not be keen, due to his age.
After all he said he wanted a dividend in one of the presentations, which was another mistake paying it out.

That will be cut out again I expect.

[base7] 14/10/2024 11:50

Massive volume today ,relatively ,& an ideal opportunity for Directors to demonstrate their support ,or otherwise ,for CRU

[clocktower] 14/10/2024 10:51

Will any of the institutions be selling now, to cut their losses?

Remember the last time that large amounts were being traded and some of us were buying under 5p because an institution decided to unload, and PG bought over a million I seem to recall at around 4.36p I think it was.

Now there are a lot more shares in issue and they have over a million in treasury, some of which they pasid 15p for, so that was pretty poor jusgement.

[clocktower] 14/10/2024 08:39

If they were to do a raise, then they would not want the share price to be high, and be forced to show a huge discount to obtain support.

I suggest they would like the share price to slide to closer to the level of the raise.

So if it was at 3p I guess they would like the share to trade at no more than 5p as it would destroy confidence even further if the discount was larger impo.

[clocktower] 14/10/2024 08:39

double post error

[clocktower] 14/10/2024 07:49

Lance would wait for the raise to show support if he truely believes he is up to the job, which on current performance he is not.

No good blaming everything else, you go out and bring new business in.

[baner] 14/10/2024 07:36

Kemche

Spot on. And soon too. Shall we guess at 3p +/- ?

[base7] 14/10/2024 07:36

At what point will Lance,Joe or anyone else consider that our shares are worth buying ?

[clocktower] 14/10/2024 07:35

If there was kemche, it would be very painful for shareholders I expect, with money being so tight and this slowly becoming a basket case.

3p maybe?

[kemche] 14/10/2024 07:32

Fundraising?

[clocktower] 14/10/2024 07:21

17 September 2024

"Underlying operating profit of £1.9m (2023: £2.7m) and underlying EBITDA of £3.2m (2023: £3.9m) in line with market expectations. Gross margins on existing operations showed a material increase, from 29.7% to 34.4% a result of the Group's divestment strategy.

· The Group has invested further in new machinery, re-tooling for future projects and re-configuring warehouse space to expand manufacturing capacity but remains in a strong cash position, with cash and cash equivalents of £2.0 million at the end of the period (2023: £4.8m). Net debt was £9.4m (2023: £7.0m)"


Lance and his colleagues have reacted swiftly to the more challenging macro-economic environment, and it is testimony to their decisive actions that gross margin improvements at half year from 29.7% to 34.4% maintained through to year end."


Lesss than one month later Lance says this:
14.10.2024

"However, with the change in revenue mix from higher to lower margin channels and no recovery in core markets or visible improvement in consumer confidence, the Company now anticipates a YoY margin shortfall of up to 500 basis points and as a result Group trading for FY25 is now expected to record a loss."


So much for improving margins, and now turning in a expected loss, how big it will be is anyones guess.

Net Debt over £9 million already, so what will it be at year end, if it can survive that is.

[charo] 14/10/2024 07:21

JG reported improved results 2021,2022,2023,and interim 2024.With dividends paid in each year.The new CEO came with stellar reputation and with board support.The chairman adopting a non exec role and presumably had no operational input.

[clocktower] 14/10/2024 06:14

Another mistake by Joe I regret to say but it seems he doesn’t learn from past mistakes.

Since this guy has arrived the share price has plummeted, sales have fallen short, and losses are coming, as per RNS.

£3 million invested and he has got to wait until the economy improves he says.

Placing the blame everywhere except on himself.

Debt is bound to rise and unless there is new management quickly, I envisage that the end of CRU is in sight within a couple of years at most.

DYOR

[valuschmalu] 03/10/2024 19:50

New CEO shouldn't be given unfettered power but he should act quickly if he spots issues with the newly acquired companies even if that means moving them on.

It is surprising that there have been no director buys. Hopefully that's not an ominous sign