Mereo Biopharma Share Discussion Threads

[momentos] 10/1/2008 16:35

Why doesn't she buy the company then?! They could merge with Peter Werth....

He must have a few tens of millions stashed somewhere from the initial float in the 90s. share price was equivalent 400p. Float must have been at mcap of 80-100m (rights issue for JCC 9% only one I am aware of).

MM and his partner must have banked a fair lump each? Mrs MM should have her half?

[argy2] 10/1/2008 16:26

The ex-Mrs Morris is none too happy either!

[eagle eye3] 10/1/2008 15:49

orders 60% up in second half, as they always are, that is like the first half plus 60%.............. I do nt think profit margins were tight when this lot was ordered, possibly from now on. JCC orders up 5% looks good now....

[momentos] 10/1/2008 13:48

An explanation of the 60% comparative was not given but I suspect it was non YSL apparel only (ie Ungaro Boateng JCC Homebody)

Squeezed profit margins is the big worry ddl. If you look at the interim geographicals, the UK margin seems to have vanished completely.

A bit like woolies really (Turnover 2.7billion Mcap 150m), you can sell as much as you like , but if margins are wafer thin your valuation will tumble.

[pbracken] 10/1/2008 13:17

SCAP is only forecasting £4m PBT, so £6m would be a stunning achievement. The market obviously doubts the broker's figure, and by some margin, because even £2m PBT would justify the £9m market cap, assuming cash flow is OK.

[dan de lion] 10/1/2008 13:07

Assuming that the 60% forward order increase is in fact over and above the first half T/O, that puts MPH on approx £48 millions T/O in the second half. Say the first 30 million equals the first half ie PBT of £0.5 millions, That should take out all the costs, so if they can make a return of 30% on the remaining £18 million that makes £5.4 + £0.5 or approx £6 million profit for the year.

About 15-16p eps.

[remynapoleon] 10/1/2008 11:59

Lol

remynapoleon

[momentos] 10/1/2008 11:56

(ROyal Suite already booked by someone, initials believed to be MM!)

[momentos] 10/1/2008 11:49

.double trouble

[momentos] 10/1/2008 11:26

Ha, beat you by seconds remy!!

pb - the 25.4m current liabilities vs 24.7m assets ex inventories is not too bad. But hardly a position to be throwing money at probably expensive flagship london stores (IMO) and the subsequent cash drain that could result.

I'm not sure what the risk / reward of the little JCC venture is, perhaps not as risky as it seems. But how many gangsta rappas do you see down Conduit Street?!

[remynapoleon] 10/1/2008 11:23

Link posted at the same time by momentos.

I should have known he would have got the information out as usual.

remynapoleon

[remynapoleon] 10/1/2008 11:19

It seems our ex MD has ambitions.

The Telegraph reports Greg Tufnell has led a management buy-in to a company called Peter Werth. They specialise in menswear supply to Littlewoods, HoF and many smaller Cos. Looks like low cost high volumn stuff. They also supply an old off topic share that everyone seemed to be in, Asos.

Maybe he will be in an acquisitive mood and look to his old haunts for expansion.

I am sorry I can't post a link, I am a bit of novice at this computer lark.

remynapoleon

[pbracken] 10/1/2008 11:16

The important figure is the £28.5m in liabilities and the c£25m in receivables, suggesting that the financial position of the business is less than robust. My worry is that an accelerating downturn in sales and margins could tip it over.

[momentos] 10/1/2008 11:02

So, yes we are 2.5m under stated NAV.

But 10m of intangibles??? Difficult to justify. So the balance sheet is not as healthy as it might look, relying substantially on those intangibles and inventory ("stated at the lower of cost and net realisable value").

Intangibles is substantially Moda 2m and Greenmark 8m with subsequent amortisation.

[momentos] 10/1/2008 10:49

Assuming that the large inventories figure is realiseable, current assets exceed current liabilities by 4.7m. Trade receivables are IMO not at huge risk due to their business practices. Long term debt is 2.9m.

Orders booked at delivery so we should (hopefully) be seeing a pretty true picture.

Interims:

Non-current assets
Goodwill 6,137
Other intangible assets 3,702
Property, plant and equipment
---------
10,871
Current assets
Inventories 5,448
Trade and other receivables 23,521
Cash and cash equivalents 1,213
---------
30,182
Current liabilities
Trade and other payables (6,281)
Current tax liabilities (3,286)
Bank overdrafts and loans (15,718)
Deferred tax liabilities (140)
---------
(25,425)

Net current assets 4,757

Non-current liabilities
Deferred tax liabilities (661)
Loans (2,894)
---------
(3,555)
---------
Net assets 12,073
=========

[pbracken] 10/1/2008 10:21

Wouldn't that just enable them to pay back the c£14m debt, dan de lion?

[momentos] 10/1/2008 10:19

C'mon MM's, walk it down to 30p so I can buy!!

Interestingly enough we are now below the pre 5:1 consolidation high of 37.5p...

[dan de lion] 09/1/2008 22:32

Providing MPH collect all monies owing they could in fact be cash rich by this time next year.

[taffee] 09/1/2008 17:02

well you have to admit there is one hell of a market correction/crash going on throughout the market regardless of performance

[dumbarton2] 09/1/2008 15:35

If there is a likely candidate to go bust its this co now which must be very highly geared in relation to its sector.

Debt is far too high!


So why arent the directors buying shares?

[deanroberthunt] 09/1/2008 15:30

Argy...maybe its all been an elaborate con and indeed it is going bust, won't be the first or last time!!