Coral Products Share Discussion Threads

[markth126] 03/3/2021 09:41

Ive had a look and to me having ran smaller businesses at this level I would think that based on £2.3m t/o that c£700-800k of trade debtors is reasonable based on 60-90 day customer payment terms. Seems pretty normal to me. May have a bit of slow moving stuff due to disputes in the total but pretty normal. This figure will include any kind of prepayments such as rent/rates/insurance etc which could spike at a year end too. IMO

[bishan bedi] 03/3/2021 09:38

I'd be interested in the views of those more au fait with small private company accounts on that point as it is a big number.

There is a director loan disclosed in 2019 that is zero by year end so it won't be one of them.

Does anyone know if there is a requirement to disclose loans to related parted separately in these types of accounts? I can't see them letting customers run up 100k a year of debts over seven years, so assume (until someone better than me tells me otherwise) it is a RP transaction. Am I wrong?

[clocktower] 03/3/2021 09:34

LOL Good Luck b.b I hope you can take a profit away anyway if you ship out and move on.

[bishan bedi] 03/3/2021 09:19

Back to 2013 before I lost the will :)

They are very simple accounts so it wasn't that arduous

[clocktower] 03/3/2021 09:13

December 2020 Mick Woods had just over 300k shares, I guess he will be parting with those today or very soon, now that he is in his new job.

A good point b.b but you are looking at the 2019 accounts I expect, so I expect JG will have had a very clear picture of the true companies finances before entering into this deal. What we also do not know is how much the directors drawings were either, and bearing in mind that they will not be drawing a cent now, their aim will be to beat the profit target by a mile.

[aleman] 03/3/2021 09:05

charo
3 Mar '21 - 08:19 - 2176 of 2179

More than JG ?

More than Mick Wood.

[bishan bedi] 03/3/2021 09:05

Sorry T_I_M i could probably have been clearer. There has been a consistent buildup of 'debtors' in the balance sheet of the acquired company over the last decade. I was musing as to the recoverability of this debt and the consequent effect on the NAV figure in the RNS.

There is no way to tell who this debt is from, but it struck me as strange.

I don't mean to put a downer on this as I am a holder myself, but suspect the reason these haven't shot to 20p is that the market doesn't trust our Joe to make a hiccup-free go of it. As has been oft mentioned on here recently the cash, property and remaining profitable businesses would be worth 15-25p if the company was wound up, so the market seems to be taking at least 4p off that to allow for Joe's ability to succeed with new venture, and/or the time value of money.

I remain invested, not sure for how long though

[markth126] 03/3/2021 08:48

Great news over the last couple of days in my view and well done to JG and the team. I wonder if the directors take this opportunity to add to their already decent size holdings. Not sure if in close period though?

[clocktower] 03/3/2021 08:36

Once the weak holders and doubters are out the way, were up and out of the blocks - Next on the cards, is selling Haydock - with a £300k income pa. the property will fetch ? Happy days CRU is not a property company but there are many that will want it I expect.

[this_is_me] 03/3/2021 08:20

From today's RNS:

"As per the unaudited management accounts, in the year ended 31 December 2020, CPL's sales were circa GBP2.3 million and the net asset value was GBP0.7 million."

[charo] 03/3/2021 08:19

More than JG ?

[aleman] 03/3/2021 08:09

Not what I was expecting. Does the new acquisition bring us an experienced CEO, perhaps?

[bishan bedi] 03/3/2021 08:05

See above re the NAV position T_I_M

[clocktower] 03/3/2021 08:04

JG not hanging around and has clearly seen a path to profit that will enhance earnings rapidly.

[bishan bedi] 03/3/2021 08:04

it would be interesting to see who the 'debtors' are, and how recoverable...

[this_is_me] 03/3/2021 08:03

So we are not selling everything and distributing the cash.

The initial acquisition cost is only about half a million above NAV. Hopefully the Earn Out will be triggered. The NAV includes modern equipment. Despite the virus sales were £2.3 million. At first glance it looks like aa good deal.

[baner] 03/3/2021 07:57

A bit of a surprise - i thought JG was going to put the company up for sale for 15p+. However, if he get the EPS to 2p+ in a debt free company, the shares should reach 20+ shortly.

[temelco] 02/3/2021 17:46

CT -He could do much worse....

[clocktower] 02/3/2021 17:39

Well done JG and Mr Woods.

Not that I want JG to do what I am about to suggest but if JG were to say, he was going to use the £8 million to mine Bitcoin out of renewable energy sources, I expect the share price would be 50p.

That is how crazy the market is with the likes of Bitcoin or masks and mentions it in the company RNS.

[clocktower] 02/3/2021 16:15

I did buy a few more today, even though I really have to many already but I am sure we might see some holders that will just take the small profits they might have made, rather than wait a little longer for the big uplift.

Crazy how undervalued it is now.

20p before long imo. DYOR.

[morkandmindy] 02/3/2021 15:29

Thanks Aleman.

[aleman] 02/3/2021 15:25

They've gained £7.9m cash and lost £2.5m in debts with sale so it has been a remarkable transformation. Ignore the lease liabilities and there was £8.833m cash and £1.798m debt remaining. Since the remaining companies were profitable, this should have improved, too, and now they're getting rent. This matches today's statement of £8m net cash. I'm no expert but they can probably pay out all of that £8m to shareholders and still have adequate for working capital needs.

[morkandmindy] 02/3/2021 15:09

Charo - thank you.

[charo] 02/3/2021 15:04

Circular suggests after all debt should have cash around £6million plus freehold unencumbered around €3 million
With rent income £300k pa and two subsidiaries generating profits around £1,2 million.Do the sums.

[morkandmindy] 02/3/2021 14:23

Does it still have circa £7mil of bank debt though? Does the sale not just cancel that with a bit left over?