Coral Products Share Discussion Threads

[valuschmalu] 03/3/2021 17:04

Not loving the auto exposure given Coral's track record in this space but it's not a huge transaction so I can live with it. I agree with Bishan that potential investors might be put off by an aggressive acquisition strategy given the mixed track record which might keep a lid on share price appreciation.

[charo] 03/3/2021 16:17

FFS.JG knows what its about.

[clocktower] 03/3/2021 15:20

Interesting that CPL are into recycling, which was something that Coral focused upon in recent times.

[clocktower] 03/3/2021 14:19

Unlike CRU's previous flirt with the motor industry, which was a disaster, it is hugely different this time, as it seems the industry are only being supplied with a narrow range of products that are not related to the number of cars sold, and certainly not products that require very strict quality control and precision tolerance.

The company also supply a number of leading companies in other sectors, including retail.

With this acquisition one might also see some former customer transferring some of there business to Coral`s new portfolio within a reasonable time, for new products that CPL are able to supply.

Hopefully, JG will get a new website sorted before to long that is an improvement on the former company site.

[clocktower] 03/3/2021 13:20

It seems that the share price has gone into the parking mode at 11/12p until such time as the research analysis have put the slide rules over the two deals that have been completed in the last couple of days.

[clocktower] 03/3/2021 10:32

Seeing JG has more cash yet to play with, has he been on other shopping trips that are earnings enhancing?

Take a look at CPL.



Impressive list of customers.

[clocktower] 03/3/2021 10:05

With CRU only parting with cash of under £900k and issuing 3,327,669 new ordinary shares to the vendors of CPL - you can bet your bottom dollar that they will be working their butts off to get the profits up and the share price up, as they will not be wanting to part with all those shares cheaply.

Great deal.

Sorry first typed in 300k by mistake. Now corrected.

[clocktower] 03/3/2021 10:04

error
.

[markth126] 03/3/2021 09:57

The T/O is mentioned in the CRU update today at £2.3m. No problem.

[bishan bedi] 03/3/2021 09:55

Thanks Mark

Yes good point on debtor days, that calculation takes me back a few years!

The trouble with these small co accounts is there is no turnover figure given but you may well be right, lets hope that is the case and the company has been increasing turnover!

[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.