Crawshaw Share Discussion Threads

[skinny] 29/4/2016 12:42

A couple of larger trades @90p earlier when the spread was 83-85p.




Edit - already posted above!

[tadders2] 29/4/2016 10:53

Will be very interesting to hear what David has to say after his meeting.

[tromso1] 29/4/2016 10:26

A couple of very large trades above the offer there.

1.375m and 1m at 90p when offer was 85p. Someone very keen to get in.

[mcmather] 27/4/2016 22:17

No questions from me David but cheers for asking. I'm happy with the information available but still wouldn't mind you updating what you can on here afterwards, ta.

[nfs] 27/4/2016 16:05

Thanks DavidYes LFL should be as you say but I see no definition so wanted to check

[davidosh] 27/4/2016 15:39

LFL figures are almost certainly comparisons with the same store if fully operational one year before so none of the stores that have opened in February 2015 onwards will have counted.

Therefore the lfl figures were for the 22 fully operational stores only. I will verify tomorrow though. It should also be recognised that there has been food cost deflation over the last two years so positive lfl is good.

[nfs] 27/4/2016 15:25

DavidI have a questionThe LFL sales are actually lower than I thought , especially in the first 7 weeks of the new financial year at +0.1%( chairman refers to 3.8%cash GM but 3.7 of that is increased GM)- how do crawshaws measure LFL?- why so low? I read that the shops mature very quickly to that £1m sales figure at a nice 14%EBITDA but does this quick maturity mean that LFL growth is tougher than people think because the sales get close to full run rate so fast? In a lot of roll outs the LFL growth is boosted by shops/depots taking time ( I.e. Several years) to get to maturityThanks

[davidosh] 27/4/2016 10:53

I will check a few things tomorrow when I meet the team but maybe they are starting to look at geographic pricing and where there is less competition or more affluent customers they feel certain products can be priced higher.

Incidentally if any of you have questions you want me to ask then do mail me or post here and I will try to cover them all.

[mcmather] 27/4/2016 10:42

By the way, the price structure in the Widnes shop is reported to be slightly higher; eg £6 for a cooked chicken & cooked joint compared to £5 for the same deal in the Bolton shop. New rates (slightly higher and therefore better margins) for the new stores perhaps?

Some large purchases gone through; 800k & 500k (83.75p).

[tadders2] 27/4/2016 10:13

I find it strange that some intelligent investors are tweeting some quite negative things this morning. Perhaps they can't get their heads round the fact that all the money that is being made is being ploughed into the roll out. Anyway I've bought some more.

[davidosh] 27/4/2016 09:34

They will easily be able to support the new store roll out from current cash resources and future profits without the need for any further dilution which is very important for me.

The programme shows new stores as a smaller percentage of existing stores going forward so the cash generated from existing stores will increase proportionally and fund the roll out.

I really like the fact that gross margin is growing and so sales especially in new stores to attract custom are not increasing at the expense of margin. Huge growth in sales (with successful roll out over many years) allied with better margins will be the star attraction for all the institutional money joining the party.

[ramridge] 27/4/2016 08:43

My reading is that the co. made a loss of -0.34p adjusted & diluted eps; whilst the broker forecast was + 0.18p (Morningstar) on the same basis. But this doesn't seem to have made a difference to the share price this morning.

[skinny] 27/4/2016 08:39

Peel Hunt Buy 83.00 100.00 100.00 Reiterates

[imranawan] 27/4/2016 07:46

Just a small point re: cashflow according to the cashflow statement CFOA was £1.9m after working capital movements. I assume they've added back the tax charge to arrive at the £2.2m CFOA.

[shanklin] 27/4/2016 07:35

playful

CRAW have repeatedly stated that the rollout will be funded by cash generated within the business and I cannot see that this RNS suggests anything has changed.

Best wishes, Martin

[mcmather] 27/4/2016 07:33

Some highlights for me:

Total group sales for the first 7 weeks of the new financial period have increased by +64%. The cash gross margin in LFL stores has increased by +3.8% in the same 7 week period, +3.7% through an increase in margin rate and +0.1% through an increase in sales volume.

Opening in excess of 15 new stores a year is no simple task, especially bearing in mind our stores are quite complex having both a fresh and food to go element. So we have built an internal resource in advance to allow us to find the retail sites, recruit and train the new staff, manage the pre-opening tasks and marketing, and to ensure that for each opening we hit the ground running. This resource is now largely in place, and so our accelerated opening programme is in full force

As we open more and more stores, the accelerated opening costs, and indeed the fixed element of our central overhead, will become a smaller proportion of the whole.


The word "accelerated" appears to be used throughout so not sure that things willing be slowing down?

[playful] 27/4/2016 07:21

Perhaps I am being overly cautious and it does take into account the acquisition, so perhaps just a touch on the brakes may suffice.

[hydrus] 27/4/2016 07:18

Playful most of the reduction in cash was the purchase of GF. The business is generating sufficient cash to fund growth as far as I can tell....'Operating cash flow and movements in working capital generated GBP2.2m which almost entirely funded the GBP2.3m of capital investment in new stores, refurbishments of legacy stores and investment in our factory production equipment in the year. '

[ghostofahangman] 27/4/2016 07:15

We can't have it all ways, if you want an ambitious store opening plan...

[gkp heros] 27/4/2016 07:14

GLR is going to fly today

[playful] 27/4/2016 07:11

Cash burn is too high they need to slow things down, get the feeling it's burning a hole in their pocket. Noel is sensible enough to know this and will take his foot off the peddle.

[mr hangman] 26/4/2016 11:51

I have just joined this incredible growth story

[davidosh] 26/4/2016 09:35

We have achieved five openings in Q1 which is nearly complete so I see no reason why they cannot open a similar number for the next two quarters and then relax off for the busy Christmas period so 15 to 17 would be my target for this financial year. That is in line with the above expectation.