||EPS - Basic
||Market Cap (m)
Real-Time news about Homestyle Grp. (London Stock Exchange): 0 recent articles
|typo56: I wonder if these guys are going to get burnt.
"A surprise in the portfolio detail is that the biggest single stake in any share is the 7,4% invested in Steinhoff's recently acquired UK listed Homestyle Group Plc. The fund managers' decision to follow Markus Jooste into Britain paid off handsomely as the share price more than doubled in Sterling terms as the Wynberg-based furniture group achieved the promised turnaround in the once troubled British retailer."|
|lyntwyn: HME tipped as a buy in yesterdays Sunday Times.
The most promising shares to pick in a choppy market
A panel of financial experts convened by The Sunday Times
"There are lots of other retailers on p/es (price/earnings ratios, which show a share price as a multiple of earnings per share) of under 10, with about 10% free cashflow yields. The companies I like are Alexon, HMV and Homestyle. "
Stephen Whittaker, joint chief investment officer, New Star|
|fusebox: According to press reports sales might be ahead but at the expense of margins.
We know they will be having losses the first half and with consumer spend to get worse this does not bode well.
You may have seen a bounce in the share price but this will be short lived.|
|valtee: I can't work out where they get the 'rights' prices from. The share price drops, yet the rights, suggested price, goes up. Weird!|
if the share price rise at the time of the announcement (when added to the value of the rights) would have triggered your guaranteed stop loss, you may have an argument. That said, the subsequent fall means you may have been no better off.
Price at time of RI - 60p? therefore rights worth (60-55=5). Adjusted price = 65p
If your stop loss would have triggered at, say, 63p you may be ble to argue that your maimum exposure should have been capped at that level. It seems likely that you'd be worse off, since you probably closed at a more preferential price than the net position of your stop loss, especially given the latest trade at 55p ;-) - IG showing 0 liability at present, but likely to bounce as quote is 57-59 still.|
|fusebox: Statement issued this morning...
Homestyle Group PLC
11 May 2005
11 May 2005
HOMESTYLE GROUP PLC
Share Price Movement
Homestyle Group PLC ("Homestyle" or the "Group") notes the recent movements in
its share price and speculation in the press.
As previously announced, the Group has been actively reviewing avenues to
significantly reduce its debt and is presently exploring a significant
A further announcement will be made at the earliest opportunity.
What a surprise....not!
So they are presently "exploring a significant fundraising"..well really we knew that but are they able to achieve it in the retail downturn!|
|airrage: I realise using Price:Sales to value any company has its risks, as does any of the standard Price ratios(PE, PEG, etc). However, it does provide a useful comparator(to other companies in the same industry) in this case to value Harveys, which would otherwise be difficult to separate out from the rest of HME's annual report. That is why I also used only a very conservative ratio (half that acheived by MFI, 20% of DFS) to get a value for Harveys.
I would be happy to hear any alternative valuation for Harveys that you may propose.
Either way, HME's share price will be down to the Sale Price of Bensons/Bed division that HME acheive. Recent price action of HME seems to indicate that some people think it will be for more than £100m, and possibly in the £130m- £150m as indicated by the analysts.|
|airrage: Possible HME valuations before Sale:
+£50m Harveys (assumes Price:Sales of 0.2 or half that of MFI, 20% that of DFS)
-£55m Net debt
Possible HME valuations after Sale:
With a Mkt Cap £84m today, if Bensons sells for anything greater £100m we can expect a share price rise from todays 125P.
If Bensons sells for £130m it would add 45P to todays price.
If Bensons sells for £150m it would add 75P to todays price.
The above assumes Harveys is worth a low P:S ratio of 0.2 and you believe that HME will sell Bensons for more than £100m|
|airrage: cartyne, from my previous post(before latest interims, will update when I can but it does show you how to work it out).............
airrage - 8 Jul'04 - 11:14 - 138 of 146
What is the value of HME ?
Debt before Roseby Sale = £118m
Debt after Roseby Sale = £68
Rumoured to be selling Bensons for £135m
That would leave a net cash position of £67m. If they pay the Full VAT bill owed of £15m, that would leave cash at £52m or 78P per share.
Net Assets of the furniture division(not including kitchens) is £ 132m or 198P per share.
That would leave Homestyle with just the Furniture Division (Harveys). From last Interims........
Decline in sales at Furniture Division (Harveys) stabilised with positive like for like sales being achieved since the beginning of September.
Total sales, excluding Kitchen Studio, for 27weeks, were £110.4 million (2002: £123.0
million) with a 7% decrease in like for like sales. The loss before tax,
excluding Kitchen Studio, was £6.0 million (2002 restated: £5.0 million
Following the deterioration in performance, albeit against very strong prior
year comparatives, we have implemented initiatives across the Division,
including the introduction of new products supported by stronger marketing and
Since the beginning of September, sales have improved in our core furniture
ranges. The Division has achieved an increase in like for like furniture sales
of 6% for the 6 weeks from 1 November to 13 December. The underlying product
gross margin is in line with last year.
January trading statement
Harveys' like for like sales were up 1% with margins showing a small decline. In the core furniture range an improved sales performance of 4% reflects the success of new products introduced in the autumn.
Price for HME shares ?
Possible sales of £220m-£250m
Selling at a Low Price:Sales ratio of 0.25 would give a lowest value of £55m or 82P per share, plus the cash of 76P would give a share price of 158P.
Selling at a Price:Book of 0.7 would give HME a value of 140P per share.|
|chapman123: great article from iii
Bristel Fund Trustees Limited is confident enough in a turn around of HME fortune to add to its shareholding. It seems a clever move since the share has retreated so much in less than a year. As usual Analysts cut their advise from buy when the share was at its peak and dowgraded it to underperforme when at its low.
But at 105, the price target of the bear is already in the share price. Evolution Beeson Gregory, worried by the prospect of a further dividend cut and high gearing, was seller and set a 107p price target on the furnishings retailer in its 31 July review. (http://homestyle.investor-relations.co.uk/invest/homestyle).
HME is plagged by concerns regarding the household debt burden and a possible collapse in consumer consumption. Those risks should impact its competitors first of all MFI in the same way. But they don’t.
At a company level, one would say that problems are company related/specific. They expanded at a high cost with the £140m purchase of Harveys in 2001 in a declining and highly competitive furniture market. « The furniture trade has been difficult in 2002 and will remain so in 2003. HME is losing market share in what is a deteriorating market » (Seymours research). The management acknowledge the state of the market : « It's just that with economies of scale we are finding opportunities to get much larger margins to offset cost increases and price deflation. » (http://uk.biz.yahoo.com/030718/114/e4j86.html). But costs are being controlled (creation of single gruop platforms) and initiatives are taken to improve efficiencies. Following the conclusion of extnesive customer research, more contemporary appeal products at higher price points are being introduced and will be supported by new marketing and promotional activity.
In addition HME have an important « debt level for a retailer : £106m in April 2003 due to seasonal peaks working capital requirement +£25m and accelerated capex spend +£22m. Please keep in mind that the debt level in 2002 of £75m included almost no investments, proceeds from freehold disposals and an improvement in working capital -£4m over 2001 debt level of £109m. So back to square one except that HME have completed the bulk of their refurbishment program (capex will decrease from +£22m in 2003 to +£4m in 2004). The pain of a massive investment is behind and not ahead. In theory had the investment program not carried out sales in the new stores could be worse ! The debt reduction is to be achieved with a reduction in capex, working capital savings (see year-end change, dividend cut with full impact in 2003 as 2001 final was paid during financial year2002) and cash generation.
The final straw relate to Customs & Excise claim (£15m after tax) in respect of structural guarantees. Compared to cautious MFI that raised a provision for the same dispute in an escrow account, HME did not provide for the claim nor the interest on the claim. Fair enough that the biggest uncertainty surrounding HME and one that has already been discounted by the market. Since July 2002, the market cap has decreased by £133m compared to a net liability of £15m! (The decrease in operating profits are also responsible for the share slide).
UNDER PROMISING, OVER DELIVERING
The City don’t like people who over promise and fail to deliver to their expectations. « Michael Rosenbatt’s misplaced optimism in the past » has attracted the wrath of analysts. At least in the annual statement, the management played down expectations and gave a simili sales warning for the furniture division (In the 13 weeks since the start of the new year like for like sales at Harveys are down 10% although recent weeks have been a bit better).
The change in year-end could impact positively the 6 months results. March/April with a loss of £4.5m in 2003 are replaced by September-October trading. I am not familiar with the seasonality of HME trading but I suspect that they did this to include peak cash inflows that will reduce the debt level. (The Board changed the year-end of the Group from the end of February to the end of April as they believe an April year-end is more appropriate to a business with significant levels of furniture sales post Christmas and into January.)
The general annual meeting of the company held on 19 Septembre may bring some interesting trading update. With EPS of 20pence going forward and a yield of 10%, the potential for a share recovery is my view on the upside as it is no time to sell.
I agree with the analysis by Maynard Paton (TMFMayn) that if all goes to plan, expect to see Homestyle shares trade around 250p -- equivalent to ten times forecast 2004 earnings and more than double the current share price -- this time next year (http://www.fool.co.uk/news/comment/2003/c030730c.htm).
HME major shareholding
Henderson Global Investors Ltd 5,16
FMR Corp & Fidelity Inv Mgrs 4,35
Britel Fund Trustees Ltd 3,95
Phillip Cort 3,73
Legal & General Grp PLC 3,25
Prudential PLC 3,05|
Homestyle share price data is direct from the London Stock Exchange