Crawshaw Share Discussion Threads

[davidosh] 27/7/2015 14:08

Welcome back.....some very good new store units and scale building here. I suspect we have added 14 stores since you were last with us and new ones opening on average every month now.

[battlebus2] 27/7/2015 13:20

I'm back into my old favourite today with a little purchase, I've been trying to time an entry for a while, I've cleared out a lot of portfolio trying to stick with fewer but better quality companies from now on. GLAH.

[loafingchard] 26/7/2015 14:57

Lids staff have always done pretty well, by retail standards, imo.

[hydrus] 26/7/2015 11:17

Thanks for the posts

[davidosh] 26/7/2015 10:43

I am sure that Noel our new CEO who had great incentives and an excellent leadership record over thousands of staff at lidl will know exactly how to motivate at Crawshaws and where necessary the pay will be what it has to be to retain good employees.

Some costs will go up but so will prices to match them and all employers are in the same boat. Crawshaws have one of the highest turnovers per employee in the food retail sector so it will hurt them less in proportion.

[tadders2] 25/7/2015 20:43

My perception is that Crawshaws know that their staff have to be well motivated if the company is to do well.

[pj 1] 25/7/2015 20:17

Also, How can you have the same LW in London as you do in Cleethorpes?

[pj 1] 25/7/2015 20:17

Yes but not specific to CRAW. Its a farce and will lead to higher wage demands in the future, as more killed labour says Im more skilled then those on living wage. Just imo

[hydrus] 25/7/2015 16:54

Any views on the impact of the living wage on Crawshaws?

[davidosh] 22/7/2015 00:48

CRAW can grow organically as the stores cost just two years profit to fit out with the low entry and nil premium lease deals available in most places north of Birmingham. They have plenty of cash and all the current stores are profitable so generating cash to continue the expansion.

I am not suggesting they would want to open everywhere that Greggs are based and only a few of the products actually compete but I think as a valuation per store it does show why CRAW is at a healthy premium.

[celeritas] 21/7/2015 21:22

Also can craw go organically or will dilution be the name of the game for a few years.

[celeritas] 21/7/2015 21:20

Good posts guys.
Obviously not a straight compare as unless craw changed the business it just can't open in the places greggs can. Greggs are in the middle trading parks, no need for butchers where people are just after a bite at lunch time.
What about cost of setting up a shop?
Greggs is still on 20x pre tax with Shaw on 40x.
Gr eggs are more adaptable being able to open at airports, stations, office trading parks, holdiday centres. These places just don't require butchers, unless craw go after greggs by just offering ready food.

[tadders2] 21/7/2015 18:47

Agree entirely,so won't be selling anytime soon.

[davidosh] 21/7/2015 18:38

Those figures look rather favourable to Crawshaws when set against Greggs and do not forget the huge economies of scale as the rollout progresses plus CRAW has significant net cash.

Greggs/Crawshaws...

mkt cap... £1200m/£46m
revenues.. £804m/£24.6m
profit.... £58m/£1.2m
stores.... 1650/22
Turnover per store..£487k/£1.1m
Profit per store... £35.1k/£54.5k
Turn per employee.. £41k/£83k

Those figures suggest turnover per store is more than double in favour of Crawshaws and so is turnover per employee with profit per store over 50% higher.

Now which one of those would you want to start a rollout plan if everything else is equal ? It looks to me like 400 Crawshaws could potentially be as profitable as the current 1650 Greggs with economies of scale. Admittedly that could be five to seven years away but the next three years will give a good indication and there should be no dilution so the share price will increase rapidly once the model is proven.

[tadders2] 21/7/2015 18:05

Greggs make £35k per shop. Crawshaws make(or have made) £55k per shop.

[celeritas] 21/7/2015 17:28

mkt cap £46.31m with pre tax of £1.2m, I know it's a growth stock but surely earnings need to play catch up now.
Greggs cap is 1.19b pre tax £58.3m

It's nigh on double Greggs.

Thoughts?

[tadders2] 21/7/2015 17:15

Very exciting times....let's hope we stay on track.

[s2lowner] 21/7/2015 16:49

Greggs has about 1670 stores mcap 1206m

[tadders2] 21/7/2015 16:27

So, we are talking about 1000 stores now. WOW. How many stores does Greggs have?

[skinny] 14/7/2015 11:25

Et voilà!!

[tadders2] 13/7/2015 16:28

Who was buying?

[davidosh] 13/7/2015 16:12

There is institutional demand simple as that. Investor appetite means that to get a deal done the broker rings around all the known larger holders. I know as I was asked if wanted to sell any by one of my brokers and the directors have clearly grouped together to sell parts of their holdings at no discount to the market which is very positive....One major beneficiary is actually a Crawshaw so they must be keen.