Coral Products Share Discussion Threads

[jimmywilson612] 29/9/2023 11:56

or maybe they haven't got a clue like the rest of us.

[clocktower] 29/9/2023 08:54

I am surprised to see people selling below 13p but then maybe they know something that we do not.

[clocktower] 28/9/2023 17:02

At 14p it is once again looking fair value, based on the likely dividend return, which should still be paid based on JG's statement but the following year may once again be a problem impo.

[charo] 27/9/2023 11:09

There are few multibaggers If you collect one in a lifetime you are lucky.Coral through 10 years has paid dividends increased asset value .Business rarely goes in a straight line.
Even the best have bad times,ask luke Johnson or nigel Wray or saatchi and on and on.

[base7] 27/9/2023 10:38

Trading in line with expectations is the key phrase & we should appreciate that revenues will be variable on a month by month basis & we are all aware of the difficult economic backdrop.
Cru is unlikely to be a multi bagger but my continuing to hold is for a ( hopefully) regular dividend,the yield from which beats all bank accounts currently & a reasonably stable capital position.One day JG may retire & dispose of the group,resulting in a capital event.
I fully appreciate the investment risks attached with Cru & all equity investments.

[charo] 27/9/2023 10:29

What caution.Openely accepted difficult times but confident in outcome.In line with broker note.
If recession does come then coral are well positioned,with experienced managers,to benefit.

[yf23_1] 27/9/2023 09:56

er, the macro environment and the cautionary statement.

[charo] 27/9/2023 09:25

Earnings in line.Cash strong .Divs secure.Demand weakening,not isolated.
Confident on future.
Whatnot to like?

[clocktower] 27/9/2023 08:14

Problem is, that any downside is sales usually impacts the bottom line, as margins get squeezed to try to maintain cash flow, on top of that when you have a bunch of small enterprises all fighting for their own corner, self interest takes pole place.

Maybe JG will buy more shares for treasury if it sinks further but not the best of things to do with cash if things get tuff.

[this_is_me] 27/9/2023 07:27

Since the results were only published at the start of the month the AGM statement was always unlikely to tell us much.

It looks like finishing sorting out things following the recent acquisitions is the immediate priority.

[clocktower] 27/9/2023 07:22

Alls well BUT red flags being unfollowed just in case, as the outlook is challenging.

However still looking to tack on nuts and bolts to this mishmash of businesses.

I think this statement will put an end to all speculation that the share price will rise beyond where it is, in fact I can envisage that those with a crystal ball will be deciding that they might be able to find better growth stocks elsewhere or look to return to this at lower levels.

DYOR

[charo] 20/9/2023 09:34

Interims are not audited so much faster.

[cfro] 17/9/2023 14:21

Just taking a look at this for the first time and i see that because they are quite late in publishing the finals but interims are published much more promptly, the difference in the payment of the final and interim dividends is only about two weeks.

Seems odd to me and not something i've ever come across before. Not saying it's a bad thing just very unusual. Don't know if they intent spreading the payments out in the future or not.

[clocktower] 15/9/2023 17:14

Maybe JG buying a few more in to hold in treasury today.

[effortless cool] 08/9/2023 16:58

cestnous, no, it was the last interim dividend that was paid on 16 December (2022). The final dividend of 0.6p is payable on 30 November. They haven't stated the xd date, but I would guess 9 November.

[cestnous] 08/9/2023 13:50

Have I got the correct next ex div date correct @ 16th Dec for 0.5p. Thanks in advance

[hatfullofsky] 06/9/2023 13:07

AIM is down over 40%, CRU has been very resilient many have fallen 90% ie EVG

[clocktower] 06/9/2023 09:25

LOL hat - I assume Simon Thompson is paid to write that article but has Simon got a Crystal Ball that is any more reliable than Mystic Megs?

And does Simon put his money where is mouth is - but as I have said many times, it does offer a decent dividend but it has not shown very good share price growth over the past year.

Good Luck.

[hatfullofsky] 06/9/2023 07:34

Clearly Clock knows more than Simon Thompson

[ohisay] 05/9/2023 13:25

Positive trading outlook

Importantly, the positive momentum has continued into the new financial year, adding weight to Cenkos’ expectations of 15 per cent growth in annual cash profit to £4.45mn to drive pre-tax profit up 8 per cent to £2.45mn in the 12 months to 30 April 2024. On this basis, the shares are priced on a price/earnings (PE) ratio well below seven and offer an attractive 6.7 per cent dividend yield.

The six directors hold 19 per cent of the shares, so the payout is rock solid, and it means that debt levels are kept in check. Net borrowings of £7mn equates to 1.6 times forecast cash profit and implies balance sheet gearing of 50 per cent, so leverage remains comfortable.

The lack of institutional following and a small enterprise valuation of £21.9mn are the key reasons why the group is below the radar of investors, rather than operational underperformance, since the board embarked on its buy-and-build strategy two years ago. It’s a rating worth taking advantage of as the potential for strong profit growth and acquisition-driven upgrades should support a higher re-rating, hence why I suggested buying the shares, at 14.75p, six months ago (‘Alpha Research: This deep value small-cap bargain could pack a punch’, 6 March 2023).

To put the upside potential into perspective, a multiple of six times cash profit to enterprise valuation for the 2023-24 financial year implies a more reasonable PE ratio of nine and would drive a 36 per cent uplift in the share price to my 22.5p target price. Buy.

[clocktower] 05/9/2023 12:21

hat - At least this one offers a decent dividend, even if there is little or no growth in the share price, you can take comfort that it is unlikely to drop much before it goes ex-divi. Still, some might think better a bird in the hand than wait for .006 and risk dropping more than that after that date, which is why I guess we have sellers that have bagged the bird.

[hatfullofsky] 05/9/2023 07:32

Charo - there's really no point, he/she has a narrative.

Optimisations and efficiencies are already being implemented - Customised Packaging Limited was merged into Manplas Limited. This should allow synergies between the two companies to be realised.

Clock - Speak to you after Divi day then, have fun somewhere else in the meantime

[charo] 04/9/2023 18:27

The existing businesses significantly improved margins!!!!

[clocktower] 04/9/2023 17:56

hat "Clock - they've more than doubled the size of the business with the 4 acquisitions, of course admin expenses are going to rise but so has Revenue +144%."

The next full year will be telling, if the expenses continue at the same pace, and unless the sales keep growing at this rate, the expenses may weigh heavily on the bottom line in the coming year. As it is likely that wages have risen, and I guess inflation has played it's part in the growth of sales over the past year but is unlikely too do so in 2024.

However, as demand could falter in the run up towards Christmas and in the New Year as budgets get squeezed, it might be that the overheads start to become an issue and with net gearing now running at around 50%, one has to run even faster if interest rates rise again.

Still as Florence mentioned it's all about margins, and if the existing businesses margins slide once again, and the new additions do not rise from the 29% level, then trouble might be brewing come next Spring.

We shall have to wait and see but it still has a way to go for the share price to reach former highs, and on current performance I think there will be more sellers than buyer after dividend day.
DYOR

[charo] 04/9/2023 16:34

Don't forget nearly £500k expensed against acquisitions.2022 had £380 k of property profits.Underlying profit and ebitda strong growth.