Mothercare Share Discussion Threads

[yump] 08/1/2018 14:43

No, actually you would have to be someone who invests in a recovery portfolio.

It all depends on making some sort of residual business profitable for a group of its business units. There's a lot of revenue to go at. Market cap. has shrunk to a small fraction of revenue, although that revenue represents something real, its not an imaginary group of customer prospects.

So is it possible to get say a £10 profit out of their revenue ? imo it would have to be a pretty dismal collection of retail products and customers not to be able to do that, if you get the product mix and margin right.

[retsius] 08/1/2018 13:28

50m debt?
Last balance sheet shows debt to service of 266m.
I am not an accountant so I may be wrong.

Unfortunately you would have to be a very silly person to invest here.

[terminated] 08/1/2018 12:51

50m of debt is the scary thing. More store closures necessary as he said he wants to get it down to about 95 which insinuates more costs. Will the UK be in profit this year, it is an absolute must.

Like the director I'm sitting on a big hit here but his average is well over £1. I did manage to sell half my holding at 66 a few weeks ago which looks like a good decision now. Will directors buy more I wonder.... I'll hold to see what happens but it may be time to find a buyer. I'm sure there will be retailers intersted in acquiring it as its brand has world wide appeal.

[eastbourne1982] 08/1/2018 08:24

Sold today for a loss, debt is spiralling out of control at MTC.

[chesty1] 08/1/2018 08:18

This chart looks awful

[r ball] 08/1/2018 08:12

Hardly. Time to take the hit and move on. Aggreko anyone?

[dealy] 08/1/2018 08:09

Buying opportunity

[dealy] 08/1/2018 07:55

All priced in already. Value of a company is based on 20 year future cash flow

[supercity] 08/1/2018 07:38

£50m of debtLower sales£1-5m of expected profit could very likely end up being a lossMost companies wouldn't be valued at £100m on the back of this and would lose 50-75% on the back of it

[funkmasterp12] 08/1/2018 07:04

Poor statement. Also:"In our UK business, we took a conscious decision to remain at full price to protect our brand positioning prior to Christmas but to then discount more heavily in the end of season sale. We have subsequently seen good progress with strong sell through rates on Autumn Winter clearance lines albeit these carry lower margins and will lead to a further reduction in full year margin as a result. Group cash generation and inventory positions are both strong.".... eh? So they planned to make less money and are surprised they did so? Very strange.

[yump] 13/12/2017 14:20

Yes: One shop to rule them all, one shop to find them, One shop to bring them all and in the darkness - oh no that one doesn't work

[terminated] 13/12/2017 14:12

Well his aim is for 90 stores and focus online, and to be fair i think he picked the worst store to highlight the new renovations. At tbe end of the day you can't get more specialist than a baby retailer. I mean a one stop shop baby retailer could develop strong brand loyalty especially using social media to bind them together.

[terminated] 13/12/2017 10:07

Without the overseas franchise I would agree. Strip out the UK business and you are left with a franchise operation that would bring in 17-30m cost free profit each year. They've just took way too long to cut the UK operation. If they can just get the UK to turn in a modest profit consistently and grow the online business organically this would have a 300m market cap.

[yump] 13/12/2017 07:20

That's a convincing argument.

[paulypilot] 13/12/2017 02:03

Difficult to see how this will survive. (no position)

[terminated] 13/12/2017 01:20

Another rights issue might be beneficial, but only if they can show the UK is now in profit.

[yump] 13/12/2017 00:38

Well the Amazon 'argument' goes for all other retailers as well, so its more to do with how MTC position themselves than with Amazon.

[clocktower] 12/12/2017 14:42

With the appointment of another broker today, are we about to see a round of funding in the near future?

[terminated] 05/12/2017 09:54

I couldn't agree more. The presentation was excellent but all those directors who picked up bonuses for watching it decline all those years ago should be forced to hand it back (as if). The big big issue is rising debt, they could take it to 50m but then they need to be banging out 30-40m per year consistently. Will the heavy investment in IT replace the cost savings or was that 8m a one off investment for example? I'm nursing a decent loss hear and further director purchases give some reassurance but this could be over £1 in Jan or it could easily go under 50p if those cost saving don't start showing through. Roll that dice....