Creightons Share Discussion Threads

[croasdalelfc] 21/11/2018 19:57

Very well run company , increasing margins, revenue - I can see then acquiring some time in the next 12 months - take time to watch the presentations on piworld

[deanowls] 21/11/2018 12:08

Sourcing from the Far East can tie up extra capital due to the longer lead times. The investment in the business with growth alongside the operational changes is huge for such a small business and requires such a large amount of planning. If only some of my larger companies could replicate this.

[jane deer] 21/11/2018 12:02

Yes excellent figures. Seems churlish to focus on the negatives but the build up in working capital over the last 18 months has been quite significant and much larger as a percentage than sales growth or cumulative profits over that period. It will be interesting what the outlook is for working capital in H2 given the comments about sourcing more from the Far East (for cost reasons) and whatever stockpiling the company thinks it is prudent to do ahead of Brexit (which will almost co-incide with the FY19 year end).

[davidosh] 21/11/2018 11:35

Nearly 42% increase in order book suggests H2 is going to be very strong and hopefully with all that machinery investment will mean a climb up in that margin ladder especially with volume savings....

[impvesta] 21/11/2018 11:07

Yes, excellent interims. The only slight disappointments are no increase in dividend and a net cash outflow but the business has grown nicely in the first 6 months of the year.

[matt123d] 21/11/2018 10:56

Back above 40p soon.

[deanowls] 21/11/2018 10:34

Great results today. Onwards and upwards.

[pireric] 20/10/2018 21:14

Not exactly jg. If the stock price is lower than where it is today in either 3 years time or 10 years time, then none of the options will be exercised. If the stock price is only where it is, then the cash in to the company will offset the dilution and so there is no loss of shareholder value. Only if the share price is above where we are today between 3 years and 10 years will there be tangible dilution. By way of an example, if the share price is 35p in 3 years time and all employees are still at the company and exercise their right, they would pay in aggregate £2.024m to buy the options, and could then sell them on for £2.644m, and so the net dilution to shareholders would be just £600k or more like 3-4% of the market cap. Sure, you would be diluted by 12% in voting rights terms, but in terms of the share price, given the cash is going into the company, it's just 3-4%.

The bigger issue is to diluted EPS, 5% dilution this year and 12% next year isn't ideal but growth should offset

eric

[ahajiqe] 20/10/2018 12:38

I vote in upport the option scheme. It is three to ten years in the future so no impact at least until the middle of 2021 and it will only be a couple of per cent of dilution trickling in each year maximal. I like that all staff are getting some shares

This stock is incredibly cheap and I bought some two days ago

[jg88721] 19/10/2018 23:15

they just gave 12% of the company

[matt123d] 17/10/2018 22:41

Wonder what time that was released as no trades on the back of it.

[pireric] 17/10/2018 21:00

Tipped today. Long and short to buy up to 32p to target 40p

[ahajiqe] 14/10/2018 11:35

hxxps://www.rankia.com/blog/ideas-y-valor/3962506-tesis-inversion-creightons-plc

the stock is cheap and should trade at 40p minimum imo

[ahajiqe] 14/10/2018 11:32

this looks like a very interesting stock. small market valuation but growing quickly and results soon sound like they might be very good

[pireric] 08/10/2018 20:52

Presumably a month and a half until H1 results. Just thinking about it, if in Q1 they get remotely close to their +48% revenue forecast...

Assuming their Q1 Q2 split is 40:60 in favour of Q2, the 1H comp last year is pretty flat, and from what I gather, no meaningful shift between the first and second quarter...

Say, theoretically, they post +10% in Q2
(0.48*0.4) + (0.10*0.6) = + 25% growth y/y for H1

If they get anywhere near that, then I'm not sure the market has really cottoned on, but not all that surprising given the liquidity here.

H1 last year was £16.7m of revenues, so implied £20.9m of revenues

In 1H last year their operating margin was 5.8%, not impacted by the outsourcing of manufacturing that impacted H2 substantially. The adjusted operating profit for 2018 was 5.6%.

Let's say the margin is 5.5% for H1 this year, or £1.15m of operating profit, say £1.12m after finance costs, taxed at 19% = £0.9072m PAT, at 67m shares in issue = 1.35p of EPS.

Thoughts? The second half revenue growth comp is tougher, but the EPS comp is extremely easy so looks set up for second half results to be good on bottom line as well. In essence, those who have seen the Q1 growth number are pretty well placed to understand that H1 results are likely to be extremely good.

[pireric] 03/10/2018 22:18

Looks like one of their brands aimed at the mid-high end of the market, targeting hair thinning, is getting closer to launch

[pireric] 25/9/2018 12:41

Some overhang present though not sizeable. This can move quickly in both ways. Market cap getting increasingly small!

Very binary outcome when they come out with interim results, which I expect will show v strong double digit growth and EPS which annualised to a single digit P/E.

[pireric] 20/9/2018 21:46

Always tough for these low-newsflow, low liquidity stocks to move in between results periods but zero impact to where this ends up medium-term

[mauricemonkey] 18/9/2018 23:05

I agree, even if it stays on a modest p/e the growth and divis combo will, I hope, make this a nice little earner over the next couple of years.

[pireric] 18/9/2018 19:21

And duly taken ;0). I reckon this is on less than 10.5x this year's earnings and that the interim results in November will be very pleasing. longer term strategy and targets attractive and achievable IMO

[rhomboid] 18/9/2018 15:31

I’ve trimmed a few today to make a buying opportunity for you Eric...couldn’t resist BILN top up at today’s sale prices

[pireric] 18/9/2018 15:28

Adding here as soon as I mobilise some cash today or tomorrow :0)

[rhomboid] 02/9/2018 17:00

I believe Lacura is produced by Midland Chemicals, a tiny own label producer ...I can’t see the CRL product featured as yet but it may be awaiting launch. Packaging in any case is down to the Aldi etc...any legal action is aimed at them not the contract manufacturer...they’ve been to court many times & use the defence against passing off that ‘no-one in their right mind thinks it’s anything high end a) because it’s so cheap & b) because it’s in Aldi

Amazingly this defence has proved robust & premium brands aren’t keen to test it again because Aldi will simply demonstrate the product is as good as the brand but far cheaper & newspapers will gleefully cover the story

[yasrub] 02/9/2018 15:58

Looking at the Aldi online lecura caviar range whilst there were only 22 customer reviews 21 - 5 stars and 1 4 star. Price point £6.98 which in such a sector is very low, they might be sailing close to the wind when looking at the packaging though.

[rhomboid] 31/8/2018 19:25

I believe the Aldi stuff is mostly own label but Mrs Rhomboid has accepted her research brief with worrying alacrity...apparently Aldi do a near identical product to ‘la prairie’ caviar moisturiser 🙄