Flying Brand Share Discussion Threads

[clocktower] 16/10/2006 14:21

LOL.. the acquired business will cost money to intergrate and the loan has to be paid off in the best way possible, and that is without doubt through raising funds while the share price is inflated..

Expect news!!!

A big holders has taken profits as per RNS..

Pull the other one chum.

[drbeat] 16/10/2006 14:10

Maybe you should reread the broker commentary posted earlier - now back to the filter list you duffer


broker note

Flying Brands is acquiring Greetings Direct, the continuity greetings card
retailer that trades as "Cards for all Occasions", for £11.9m. We are big fans
of the deal: 1x sales and 6x EBIT feels very cheap for a cash-generative,
high margin, high growth company that fits neatly with Flying Brands portfolio
of businesses. We are upgrading materially today and this leaves the shares
looking even more undervalued than when we initiated a fortnight ago.
Greetings Direct: the acquired business is comprised of three associated
companies (Greetings Direct International (based in Malta), Greetings Direct
Ltd and Greetings Direct Trading Ltd (Jersey based). It began trading in 2003
and sends monthly parcels of greetings cards to its 52,000 active customers,
though it has a database of 700,000 names. It has no internet presence,
which makes the growth rates even more impressive. In the year to August
2006, turnover was a short £12m, and EBIT was £1.8m. The company has
just begun selling to Eire, and completed a trial in Holland (and will
commence trading there next year). Other countries are being researched.
Impact on Flying Brands: we think that Greetings Direct will fit neatly into
the Gifts category at Flying Brands, and a good deal of cross selling will be
possible in both directions. The deal does materially change the face of the
P&L, in a most positive way. Using very conservative sales and EBIT growth
assumptions, the upgrade to PBT is 14%, and although we haven't changed
our tax assumptions, Greetings Direct's status as a Jersey company may
mean our numbers are too bearish. With the acquired business being very
cash generative (there is virtually no cap ex), it also fits in with Flying Brands
criteria. We expect more of the same, as debt levels remain very low.
Too cheap from an earnings or cash flow perspective: management
continues to deliver its promises here: this should be a very EPS enhancing
deal, utilising the lack of debt on the balance sheet and further increasing the
cashflow attractions of the company. A free cashflow yield of over 12%
strikes us as very appealing and the deal has further increased our
confidence in our BUY recommendation.

Now read the last para

With the acquired business being very
cash generative (there is virtually no cap ex), it also fits in with Flying Brands
criteria. We expect more of the same, as debt levels remain very low.
Too cheap from an earnings or cash flow perspective: management
continues to deliver its promises here: this should be a very EPS enhancing
deal, utilising the lack of debt on the balance sheet and further increasing the
cashflow attractions of the company. A free cashflow yield of over 12%
strikes us as very appealing and the deal has further increased our
confidence in our BUY recommendation.


I read this as 12% of the market cap falling out in cash each year! Brilliant cash generation dont you think

[drbeat] 16/10/2006 13:58

i unfilterd you C,locktower just to see what rubbish you were spouting. I shouldnt have bothered. You will find that the note is from Baird as the numbers are the same as in last Fridays mention in the Investors Chronicle BUY recommendation?

[clocktower] 16/10/2006 13:40

Getting desperate holgerl, almost seems as though your a pro working to get the share price up. :-)

Who paid the broker to do this note?

[holgerl] 16/10/2006 13:32

broker note

Flying Brands is acquiring Greetings Direct, the continuity greetings card
retailer that trades as "Cards for all Occasions", for £11.9m. We are big fans
of the deal: 1x sales and 6x EBIT feels very cheap for a cash-generative,
high margin, high growth company that fits neatly with Flying Brands portfolio
of businesses. We are upgrading materially today and this leaves the shares
looking even more undervalued than when we initiated a fortnight ago.
Greetings Direct: the acquired business is comprised of three associated
companies (Greetings Direct International (based in Malta), Greetings Direct
Ltd and Greetings Direct Trading Ltd (Jersey based). It began trading in 2003
and sends monthly parcels of greetings cards to its 52,000 active customers,
though it has a database of 700,000 names. It has no internet presence,
which makes the growth rates even more impressive. In the year to August
2006, turnover was a short £12m, and EBIT was £1.8m. The company has
just begun selling to Eire, and completed a trial in Holland (and will
commence trading there next year). Other countries are being researched.
Impact on Flying Brands: we think that Greetings Direct will fit neatly into
the Gifts category at Flying Brands, and a good deal of cross selling will be
possible in both directions. The deal does materially change the face of the
P&L, in a most positive way. Using very conservative sales and EBIT growth
assumptions, the upgrade to PBT is 14%, and although we haven't changed
our tax assumptions, Greetings Direct's status as a Jersey company may
mean our numbers are too bearish. With the acquired business being very
cash generative (there is virtually no cap ex), it also fits in with Flying Brands
criteria. We expect more of the same, as debt levels remain very low.
Too cheap from an earnings or cash flow perspective: management
continues to deliver its promises here: this should be a very EPS enhancing
deal, utilising the lack of debt on the balance sheet and further increasing the
cashflow attractions of the company. A free cashflow yield of over 12%
strikes us as very appealing and the deal has further increased our
confidence in our BUY recommendation.

[clocktower] 16/10/2006 13:27

jakleeds, well spotted.I think he might have taken advantage of CH buying.

[holgerl] 16/10/2006 13:27

3200 bought - looks ready to move up in a second...

[holgerl] 16/10/2006 13:19

FBDU - Flying Brands

Latest Prices
Name Price %
Flying Brands 305.00p +0.83%

FTSE Fledgling 4,072 0.00%
General Retailers 2,589 -0.47%

LONDON (SHARECAST) - Flying Brands rallied to a fresh high today as the home shopping outfit announced the acquisition of Greetings Direct for £11.9m in cash.

The Jersey based group said £1.8m of the consideration is deferred and will be payable subject to satisfaction of certain conditions.

The purchase from its current private shareholders who include its managing director, Marten Nilsson, is being funded by £2.4m of existing cash resources and a new £9.5m debt facility.

Flying Brands boss Mark Dugdale said, "This acquisition fits our ongoing strategy perfectly."

"Greetings Direct has grown strongly since it was established in 2002 and has the potential to continue this growth both in the UK and in other markets."

"There are excellent synergies with our existing databases for cross selling products, which, combined with good cash generation and a strong management team, should continue to enhance our overall value," he added.

Greetings Direct, trading as 'Cards For All Occasions', sells a range of greeting cards through direct continuity marketing channels.

Customers are automatically sent a package of selected cards each month which they may choose to purchase or return.

[holgerl] 16/10/2006 13:11

Lol. Is that your buy of 1,000 shares then?

[clocktower] 16/10/2006 13:08

Thanks but I am waiting to short it.

[holgerl] 16/10/2006 13:05

Clock

Last chance to buy at 306p, if you were thinking of it!

[holgerl] 16/10/2006 12:46

Up she goes

This should imho get to 320p in a blink!

mms look desperately short of stock

[clocktower] 16/10/2006 12:05

Well its pretty clear to see that one major holder also thinks it`s time to bail out, from todays RNS.

If it`s a poster here, one can see why they wanted to ramp this up.

Maybe they to thought that having CH as a major stakeholder was not such a long term promising thing after all.

[drbeat] 16/10/2006 11:47

clocktower - 16 Oct'06 - 10:52 - 80 of 80 (Filtered)

[clocktower] 16/10/2006 10:52

How long will it be before the sellers start?

A day//two maybe?

[holgerl] 16/10/2006 09:14

small buys coming in now

[holgerl] 16/10/2006 08:23

Clock

Do you know it only needs to go up a tiny bit more and then it goes into the small cap indices

[holgerl] 16/10/2006 08:23

Clock

Do you know it only needs to go up a tiny bit more and then it goes into the small cap indices

[holgerl] 16/10/2006 08:17

have yoy read the ic piece ting tang

[clocktower] 16/10/2006 08:16

Ramp ramp ramp.

[holgerl] 16/10/2006 07:55

wE SHOULD HAVE A GOOD DAY I FEEL WITH ALL THE ic BUYS COMING TODAY HAVING DIGESTED THE PIECE

[holgerl] 15/10/2006 09:10

INVESTORS CHRONICLE


Tips:
* Buy Flying Brands

[holgerl] 14/10/2006 13:44

anyone able to post fridays investors chronicle BUY article?