Myhome Share Discussion Threads

[lgpixels] 18/6/2008 10:21

The way I see it profits and cash flow will be similar in the years to come. We should see £2-3 million profits this year and £3-5 million the following year. I would expect the company to be in a position to start paying dividends from next year. Myhome Plc has two main revenue streams i.e. selling franchises and royalty fees. The franchise fees are paid upfront for the term of the franchise and the royalties are paid on a monthly basis. This leads to a highly cash generative business model, so in the future it will be possible for Myhome pay most of its profits out as dividends.

[gsands] 18/6/2008 10:15

Slap,

Interesting comment on cashflow, but I believe the company are correct in what they say.

The Chipsaway purchase was part cash, and part shares, and like all their other purchases, further payments rely on future performance.

This means that the company, to a certain extent, have shielded themselves from the franchise performances falling below their expectations.

Shrewd.

[slapdash] 18/6/2008 10:05

main issue to me is why cashflow from operations was negative last year???

the two contributers are a decrease in payables (myhome paying its suppliers upfront) and an increase in receivables (myhome taking longer to receive money from customers).... both of these meant profit was turned into negative operating cashflow...

I asked Myhome about this and their representative gave me an answer which was obviously wrong... he said it related to trade payables on acquisitions... but that would be a current liability and wouldn't be used to change operating profit into cashflow...

So that is what concerns me... especially now that they have £8m of debt with the Chipsaway acquisition they need to generate cash... anyone know if they got a good price with Chipsaway?? it is good they funded it partly with equity as that shoudl reduce the risk...

Slap

[gsands] 18/6/2008 09:37

There was no contribution from Chipsaway to last years results as they had only just been bought.

I am expecting this franchise to add a very exciting revenue stream to MYH over the forthcoming years.

With money now tight, people might do more homework before agreeing to a traditional bodyshop to overcharge them for light repair work.

One such example is a friend of mine, who recently sought out a company called 'Oops!' to repair his car after a minor accident. He had been quoted 1100 quid by a body shop for paintwork and a new healight. Oops quoted him 250 quid, saying they could repair the broken bracket on the headlight and do a localised paint repair.

This friend of mine is an IFA and business is quiet. In more prosperous times he would have been too lazy to seek out an alternative like 'Oops!'

[lgpixels] 18/6/2008 09:36

The business model and rapid international expansion of Myhome indicates that we should get at least 3-5 years of solid growth in both turnover and profits. Myhome brand is gaining in strength and should experience similar growth to Service Master in the US, which has turnover of over $1 billion. The current share price looks very undervalued based on historic fundamentals and this years forecast. Then we also have the prospects of significant future growth, so the shares look a solid investment at these levels.

[lgpixels] 18/6/2008 09:24

Success stories

Here are just a few Success stories from current and retired ChipsAway franchisees.


Lee Draycott

Existing New Franchisee

Lee Draycott

Family man Lee Draycott is reasonably new to the ChipsAway network, but knows that he has finally found what he has been looking for in life – flexibility, freedom and time with his family. His ChipsAway franchise has proved to be the perfect fit after first quitting his lucrative job as a financial adviser for a leading bank to taste self employment as a plumber.

"I was bored to death at the bank and I certainly couldn't see myself doing that line of work until retirement age, and I really wanted to be my own boss. I'm a very practical person and enjoy working with my hands and so decided to train as a plumber. Unfortunately, within a short space of time I felt as though I'd leapt from the fat into the fire, finding myself on 24/7 call-out and working longer hours than ever. I felt isolated, stressed and totally overworked."

Lee decided to cut his losses and invest in a business which he truly felt part of, involved his passion for cars and provided good profit margins – ChipsAway was the obvious answer and in his opinion stood head and shoulders above the rest.

"From the moment I joined ChipsAway the support from Head Office has been tremendous. Following the comprehensive training course, I was allocated my own Business Developer – an experienced franchisee, who really knows the ropes – and ongoing marketing advice and assistance from a dedicated Franchise Support Officer, to keep my momentum going thereafter."

Since his launch weekend, where he estimated around £4,000 worth of work (most of which he converted into firm bookings), his diary has continuously been booked up weeks in advance. Nowadays he barely has to advertise as most of his business comes from a combination of leads from the centrally based sales team and personal recommendations from his satisfied customers.

"I'm very happy with my business. Although I work hard, I'm doing fewer hours than I did before and I am certainly earning a better income. Most importantly I see a hell of a lot more of my family. I've definitely found everything I was looking for in a business with ChipsAway"



Matthew Knight

Over five years with ChipsAway

Matthew Knight

Matthew Knight was the first ChipsAway franchisee in 2007 to sign up with the franchise for a further five years.

Matthew recalls, "I was bored to death in my former role in a sales office for a small security systems company, and in turn drove my wife mad moaning about my lot every evening when I came home from work. Finally, she told me to stop complaining and do something about it – so I did".

Having looked at several opportunities, Matthew found himself strongly attracted to ChipsAway so attend an informal Open Day at the ChipsAway Head Office.

"I've always been keen on cars, and the franchise opportunity really caught my imagination. I was very impressed with the quality of the repair system and the huge market potential the business offered, so I took the leap and signed up".

At his launch, he was aided by a well-established franchisee, who mentored him during the early days and helped him generate initial enquiries worth up to £6,000, which subsequently delivered firm business bookings of around £3,000 for his first day out in the vehicle.

"The best thing however, was starting out with business from day one".

Five years on, Matthew is certainly enjoying the benefits of a thriving franchise. He is earning good money and has the flexibility to spend much more time with his family. "The first five years has gone remarkably quickly," he concludes. "I'm really happy with the way my business is going and am looking forward to building my business even further over the forthcoming five years".



Norman Ryan

Retired ChipsAway Franchisee

Norman Ryan

Eight years after buying a ChipsAway franchise Norman Ryan, 59, sold his business for over 200% more than he bought it for; having worked hard building a superb, thriving business with an extensive high spending customer base, not to mention tremendous loyalty and good will.

Before joining ChipsAway, Norman had run a Post Office for a number of years, but had become bored with it, when by chance he spotted a franchising feature in the Sunday papers and read about ChipsAway.

After being stunned by the capability of the system at one of ChipsAway informal Open Days, Norman was quick to sign on the dotted line to become a ChipsAway Franchisee.

Looking back he estimates that within three months he'd established a more than viable business and was never short of work. "I almost became a weekly fixture at a certain local dealership, despite them having their own body shop. My minor repairs were far more cost effective."

"I was always busy and some days ended up turning work away. I never needed to advertise as recommendations were a plenty."

Norman and his family now have a holiday home in La Manga – one of many lifestyle benefits that Norman's successful ChipsAway franchise has delivered – so his dreams of retiring to the sun have now become a reality.

"I earned an excellent living from my franchise. It's been a fantastic business for me and my family – thank you ChipsAway."

[lgpixels] 18/6/2008 09:24

Scottish ChipsAway Open Day

June 2008

To celebrate Scottish Franchising Week (June 9th-15th) ChipsAway International, which will be exhibiting at the British Franchise Exhibition in Glasgow, is holding a free, informal Open Day at the Crowne Plaza, Congress Road in Glasgow on Sunday 15th June from 10am.

Visitors will be able to see a demonstration of the famous ChipsAway SMART repair and will have the opportunity to chat to the senior management team and to established ChipsAway franchisee Jim Hughes, who recently signed for a second 5 year term.

ChipsAway pioneered the concept of SMART repairs and introduced it to the UK almost fourteen years ago. The unique technology, which is safe and easy to use, enables franchisees to make invisible repairs to minor car paintwork damage, quickly and cost-effectively restoring vehicles to a commercial standard in a matter of hours.

The ChipsAway SMART repair service has made the company number one in the marketplace, which is estimated to be worth a massive £5.5bn.

For further details about the Open Day please contact us on 0800 731 6914.

[slapdash] 17/6/2008 19:11

knowsleyman - what didn't you like about the last results??? I went through the recent ones and there aren't really very good notes to the accounts on the deferred consideration.... but they do have some cash...

Slap

[knowsleyman] 17/6/2008 19:04

ihavenoclue

The answer is in your title.

It ended the day down!!!!!!!!!!! or, did you not notice that?

How on earth a stock, of questionable quality, could rise as much as it did on an announcement that there is going to be an announcement on the 30th June, so far as I am concerned, beggars belief.

Am no longer a holder, just a watcher and waiter until such time as the market is made aware of what the state of play actually is.

The last set of accounts I got, not the last ones, were rubbish and contained unacceptable errors. Also the question of not writing down the value of goodwill is very questionable. Does this still apply to the goodwill, or is it to the company as a whole?

[petersmith6] 17/6/2008 18:32

glad i was out the office..looks like the telly tubby were doing the MM's job. more fun and game before the 30th. time for tellytubby tree shake

[master rsi] 17/6/2008 16:28

no more buyers since

[master rsi] 17/6/2008 16:07

WINS has gone one better and now is 21p bid, 2 at offer

online prices are strong and on size able to sell 15K at a premium

Bid Price BPC 21.37
Maximum Size* 15,000

Offer Price BPC 22.19
Maximum Size* 10,000

[gsands] 17/6/2008 16:04

Looking for a blue close.

[ihavenoclue] 17/6/2008 15:55

knowsleyman - 17 Jun'08 - 14:05 - 31 of 33


GSands

I suspect the arrow may be showing in the wrong direction.

===============================

You were saying ?

[master rsi] 17/6/2008 15:53

One can buy just below yesteday's price of 22.25p on size of 10K

online prices

Offer Price BPC 22.18
Maximum Size* 10,000

[mikey_b] 17/6/2008 15:37

myh seem to be in doldrums now the rampers have moved on with their profits ;-)

[master rsi] 17/6/2008 15:29

MMs had enough of the mark down and now they are on the UP

managed to bring it down to 20 / 21p and then up to 20.50 / 22.50p now a large spread at the moment

[master rsi] 17/6/2008 15:27

on the move up

[brando69] 17/6/2008 14:33

this all seems to be going to plan...

will it hold 20p?

[knowsleyman] 17/6/2008 14:05

GSands

I suspect the arrow may be showing in the wrong direction.

[gsands] 17/6/2008 12:56

Expected move:

[gsands] 17/6/2008 10:20

Spread tightening. MM's preparing for business?

[mikey_b] 17/6/2008 09:34

sorry mary but I thought the same as GS in that case. AMusing thread that this is....now about that 69

[ihavenoclue] 17/6/2008 09:14

wow .. love it is actually taking a neutral stance ..... for a change.