Greencore Share Discussion Threads

[dusseldorf] 15/2/2013 10:54

theprovosts - Growth of 44% was specifically stated as having come from acquisition - not organic growth. Growth outside of acquisitions was 7%, which could be seen as simply a recovery to a previous state.

Net debt has near doubled in a year £258m (up £118m or £circa £9m/month). I'm not saying the company is a basket case, simply that it needs a large chunk of cash to sort out it's debt issues. GNC has £817m in liabilities. So whilst the price will bob, the sharp decline indicates to me there is a discounted placement in the offing, time will tell but ask yourself the question why the upward trend has broken - the answer is not linked to the horse issue.

Acquisitions are notorious for throwing up surprises. but also give the company a chance to through in the kitchen sink against 'new numbers'. Whilst an underwritten placement may not have been stomached before I suspect it can be now with the additional revenue.

[spob] 15/2/2013 10:50

@theprovosts

that depends if you really understand the p you are paying in p/e

[theprovosts] 15/2/2013 10:31

p/e of under 10 with growth rates of 40% is overvalued?

[twixy] 15/2/2013 10:30

Grizzly Bare - Agreed. I have been involved in fast moving consumer goods and the retail multiples for 25 years & these issues remain in the public conciousness for 3 weeks. The supermarkets will be working with Greencore and their other partners to limit the damage both in the short & long term.

If the share price is not close to the 100p mark in a month I will be very surprised.

[liam1om] 15/2/2013 10:28

Actually just bought in here, spent the last hour researching the company and the impact of this.

Bought in here and looking for an exit around 100p.

GL.

[spob] 15/2/2013 10:24

the horsemeat issue is no big deal in the grand scheme of things for GNC

but for me it has drawn attention to how overvalued this company is

considering its liabilities

[grizzly bare] 15/2/2013 10:22

Well I've taken a punt on these this morning at 87.5p.

This looks like an excellent buying opportunity to me.

Back to £1+ within 3 months.

[dusseldorf] 15/2/2013 10:05

theprovosts - bit of a smokescreen IMO, the drop is too sharp to be press on horsemeat linked. It certainly doesn't help (investigations will result in impairment/charges), but I would think the only cause of such a steep drop is a discounted placement due to the increasing liabilities and a need to address the situation.

[theprovosts] 15/2/2013 09:58

"The revenue of the Beef Bolognese Sauce represented c. £0.3 million of Greencore's £1.16bn turnover in its last financial year. The annualised revenue of all products withdrawn represents less than £1.0 million."

Seems a little over the top. Usual market reaction. Prob a buy at these levels.

[ukinvestor220] 15/2/2013 09:47

15 February 2013





Response to Press Comment regarding Asda Product Withdrawal


Greencore can confirm that it supplied the Chosen By You 350g Beef Bolognese Sauce that Asda has withdrawn following the detection of traces of equine DNA in a screening test. In addition to the 350g Beef Bolognese Sauce, Asda has withdrawn three other Greencore products, none of which contain equine DNA, as a precautionary measure (600g Beef Broth Soup, 500g Meat Feast Pasta Sauce, and 400g Chilli Con Carne Soup). The revenue of the Beef Bolognese Sauce represented c. £0.3 million of Greencore's £1.16bn turnover in its last financial year. The annualised revenue of all products withdrawn represents less than £1.0 million.

The company is currently awaiting the results of further quantitative tests on the 350g Beef Bolognaise Sauce that will validate the presence and the extent of the equine DNA.

The sauce contained meat that was supplied to Greencore under contract by the ABP Food Group's Nenagh plant in County Tipperary, Ireland, an approved and regularly audited supplier. The company is working closely with them to determine the full facts as we await the results of the further tests.

Greencore is committed to maintaining the highest standards of food safety and food traceability, and is therefore extremely concerned that the quality of one of its products may have been compromised in this way. The company is participating in full with the intensive industry testing programme to examine the full supply chain in order to restore consumer confidence.


Greencore will provide a further update as and when appropriate.




For queries, please contact:

Rob Greening or Lisa Kavanagh


Powerscourt


Tel: [phone]

[joeall] 15/2/2013 09:36

spod,thanks,then debt is much to high.

[spob] 15/2/2013 09:26

If the board not very careful in my opinion this could go the way of Premier foods

should this company REALLY be paying dividends ?

[dusseldorf] 15/2/2013 09:20

Smells like some insti's have a sniff of a discounted placement. Cash looks tight despite profits.

[spob] 15/2/2013 09:18

some highlights from the last annual report


market cap now = 393 x 90p = 354m

net debt 258m


total borrowings 299m

pension deficit 142m

intangibles 502m


forecast profit BEFORE tax 60m

[richtea1701] 15/2/2013 09:12

MAssive buying op

[joeall] 15/2/2013 09:08

spod,what is their debt ratio,to fy profits please.

[ukinvestor220] 15/2/2013 08:56

best keep clear then !

[spob] 15/2/2013 08:51

looking at the balance sheet, this company shouldn't be paying dividends in my opinion

they should be clearing their debts first

And there's a pension deficit too


bargepole anyone

[ukinvestor220] 15/2/2013 08:48

nothing that a blind man on a galloping horse would notice

[spob] 15/2/2013 08:44

this company not exactly cheap even after the fall

lots of liabilities

[spob] 15/2/2013 08:41

never bet on the horses myself

might make an exception in this case

[spob] 15/2/2013 08:39

not my little pony

[ukinvestor220] 15/2/2013 08:34

id bet a pony this bounces back

[ukinvestor220] 15/2/2013 08:33

stop foaling about