Danakali Share Discussion Threads

[geng] 03/8/2006 13:19

How low will she go ?

Got to be close to the bottom now and could be a 10 bagger from there if they start to turn a profit.

5 years ago it went from 8p to 80p in the space of a few months.

Less debt now and suposedly less overheads. Can't take much to make a profit from $1Billion in revenue.

As someone pointed out on yahoo US It is possible that the earnings could be higher than the current share price !

[yellow_snow] 07/7/2006 11:15

That one does look like a very poor price given the revenue figure. I wonder will bits of Europe be next. The prices they got for Canada and Latin America ops were considerably better to my mind so this isn't good if it sets a trend.

[jotoha1] 07/7/2006 08:07

Here we go again, another fire sale!!!!

[nicd] 07/7/2006 08:02

Danka Business sells Australia unit for 12.6 mln usd

LONDON (AFX) - Danka Business Systems PLC has entered into an agreement to
sell its Australian subsidiary to New Zealand's Onesource Group Ltd for 12.6 mln
usd.
The completion of the transaction is expected to take place on or before
July 17, subject to the completion of finance arrangements and certain consents.
Sydney-based Danka Australia Pty Ltd pretax profit of 1.4 mln usd on sales
of 50.2 mln usd for the year ended March 31, 2006. Gross assets in the business
totalled 11.8 mln usd.

[rabbrooks] 27/6/2006 14:12

It's a dilemma. Should we sell to have a little return of capital or hope that there will be a recovery of sorts. On balance it appears to me that the company is not going to survive. Chief executives come and go faster than England can score goals at soccer. They all seem to have give up the ghost. Private shareholders should follow them or am i missing something?

[phook inell] 07/6/2006 16:26

another quarter, another set of mundane jam tomorrow results.

[newstarter] 07/6/2006 16:21

A flat line eh !!

[lowtrawler] 07/6/2006 16:11

Quack, Quac, Qua, Qu, Q, _________________________________________________

[nicd] 07/6/2006 14:26

Danka Business Syste Danka Business FY sales fall, losses narrow slightly
LONDON (AFX) - Danka Business Systems PLC, the provider of office imaging
systems, reported falling sales and slightly narrowing losses for the year to
end-March.
Revenue declined by 6.3 pct to 626.1 mln stg during the year. Excluding the
impact of the sale of the group's Canadian and South American operarations.
revenue was 2.7 pct lower.
Operating losses before restructuring costs and other exceptional items
shrank to 49.4 mln stg from 51.8 mln last year, after operating costs declined
by almost 18 pct following cost-cutting measures.
Pretax losses narrowed to 52.2 mln stg from 58.2 mln.
Gross margins fell by 270 basis points to 32.0 pct.
"Notwithstanding this loss, we experienced a number of improvements during
the fiscal year in several areas of our business," said Danka chief financial
officer Ed Quibell. "For the year, retail equipment and related sales were up
over the prior year. This is the first time we have seen an increase in this
area in seven years."
In the fourth quarter, total revenue was 154.7 mln stg, a fall of 2.5 pct
from the same quarter last year but up 1.8 pct from the third quarter. Operating
losses before restructuring expenses and other one-off items almost halved to
16.1 mln stg from 31 mln last year.
"We have made major progress in the area of cost reduction during the year
and while we have more to do, we will now focus on improving our margins and
profitability," said chairman and chief executive A Frazier.
"Danka's economics are fundamentally different now at the start of fiscal
2007 than they were a year ago. Because of this, we intend to rebuild, with
emphasis on our core business in this fiscal year."
[e-mail]

[newstarter] 07/6/2006 14:14

Not for the faint hearted - been in a long while ago, will steer well clear.

Dead Duck??

Any other views?

[miata] 07/6/2006 13:49

Fourth-quarter loss narrowed to $22.9 million, or 44 cents a share, from a loss of $136 million, or $2.22 a share in the year-ago period. Revenue fell to $271.2 million from $284 million. Adjusted operating loss from continuing operations was $9.7 million, down from $45 million.

[yellow_snow] 07/6/2006 13:45

Results out, appears to be a reasonable quarter but not a "turnaround" set of figures. Still up in the air as to a return to profitability and all the time the clock is ticking on the debt repayments. I'll see how it goes down in the states over the next day or two and may take a small s/b but certainly only a short term trade for now.

[lowtrawler] 30/5/2006 17:24

It seems a long time since I was a regular contributor to this board (in reality only about a year). Unfortunately, the fundamentals have continued to decline - sales and margins worse than before, cash outflow continuing. The size of their liabilites and continued poor trading means that shareholders can expect to be stuffed at sometime in the future.

Let me explain. With net liabilities, they have no assets to sell and their worth must be based on the trading position. The trading position needs to stem the cash outflow and start generating cash before this can have any worth. At their reduced size, I can't see any circumstances where they would generate more than £20m of cash on an ongoing basis. If they work a miracle and start to generate £20m of ongoing cash, this will barely cover their net liabilities. In other words, I believe they are technically insolvent and will need a capital restructuring to survive. As we all know, the shareholders are always stuffed in any capital restructuring.

Even a takeover does not appear particularly attractive. Any acquirer would likely deal directly with the debt holders, bypassing shareholders and offering a token value per share. They remain an attractive acquisition for a number of parties but I don't see this bailing out shareholders. The management have lost credibility, the business is in terminal decline and shareholders have a poor bargaining position.

Unfortunately, this is one to avoid even at current price levels.

[yellow_snow] 10/5/2006 07:31

News of the final results may be percolating out. Theres lots to be concerned about with Danka but it has significant upside if they do turn the corner. We'll need to see the results to judge.

[zedder] 09/5/2006 18:24

Sure am. Don't know what to make of the flurry of late trades today though. Price seems to be stable in the US after the recent decline.

[white russian] 09/5/2006 18:18

anybody following this?

[white russian] 09/5/2006 17:04

hmmm - strange trading. up 2%, down 2% and largish trades

[weegag] 25/4/2006 11:31

Anyone know when the results are out ?

[ejplynch] 13/4/2006 01:12

i'd agre we miata. No reason for him to take over now but to turn it around.

[miata] 12/4/2006 16:40

Frazier has "backed up the truck". (!) Frazier base salary is 700,000. In addition a one million stock options. That was even more than the previous CEO. Robbers.

See above re his "credentials".

[latifs100] 12/4/2006 16:29

any ideas on this dog.. holding from 30p..

[geng] 30/3/2006 13:59

This is looking more and more like a takeover/merger now. The only real question is at what price and do the ordinary shareholders get shafted as usual ?

It still strange that with a billion dollar turnover you still can't make a profit even after all the cost saving.

[miata] 21/3/2006 07:25

Danka article below proves the above AD Frazier worked for Caremark and on the Atlanta games so is the one in the above CV (unfortunately). Only bright spot would be if this is a prelude to an agreed takeover rather than Mavis leaving a sinking ship.

[willjam] 20/3/2006 23:04

having looked up the CV attached to MIATA's post he would appear to be even less relevent(If it is him)

An acedemic and Trade Dispute mediator
Just what a troubled, leaderless, directionless multinational office equipment distributer needs to go forward and make money
it needs Jose Mourhino lookalike

[miata] 20/3/2006 07:49

Aye, at 61 he can afford to take the money and fail.