Myhome Share Discussion Threads

[mikey_b] 30/6/2008 08:49

How many franchisees actually turn a profit for MYH.

Strong buy sub 10p IMVHO

[gsands] 30/6/2008 08:48

Is anyone else as surprised as I am to see that debt has hardly increased in the period?

Those one off restructuring costs of £3m got absorbed easily....


Financing

As part of the acquisition of ChipsAway Group, the company secured a new £8 million loan facility from Lloyds TSB and a further £8 million of equity through the issue of new shares. As at 31 March 2008 the Group had net debt of £8.6 million.

[gsands] 30/6/2008 08:43

Connor,

This is a kitchen sink job. And with a little help from the MM's, all the private investors will be flushed out at the bottom. IN six months time the company figures will look far more robust. Debt will be paid down and one off restructuring costs will be behind the company.

Going into 2009 the figures will look much better.

[lgpixels] 30/6/2008 08:41

"Franchisee recruitment remains strong and the prospects for organic growth in the future based on the acquisition of new customers for franchisees and increasing royalty income, remain encouraging."

50 New Franchisee recruited in the first 3 months (compares to 77 in the first six months).

Cost reductions will save over £500,000 in future years.

The shares look a strong buy at current levels.

[brando69] 30/6/2008 08:36

you said that when they were 20p

[lgpixels] 30/6/2008 08:36

"Franchisee recruitment remains strong and the prospects for organic growth in the future based on the acquisition of new customers for franchisees and increasing royalty income, remain encouraging."

50 New Franchisee recruited in the first 3 months (compares to 77 in the first six months).

Cost reductions will save over £500,000 in future years.

The shares look a strong buy at current levels.

[c0nn0r] 30/6/2008 08:32

Online limits favour the bulls ...

[still waiting] 30/6/2008 08:31

I'd be taking a close look at the value of those intangibles if I were signing off the year end accounts.

Impairment write down on its way!!

[brando69] 30/6/2008 08:31

LOLL!!!!!!!!!!!!!!!!!!!!!!!!!!!

[gsands] 30/6/2008 08:29

Strategy

The Group is now clearly focussed on organic growth. The acquisitions made in 2007 provide a sound foundation for growth and the emphasis on marketing of the services will continue to drive opportunities for franchisees. As franchisees' businesses continue to grow, Myhome revenues will also grow as, for the majority of the management franchises, royalty payments are based on a percentage of franchisees' sales. The Group now has the operational gearing to deliver strong growth from both the original businesses and from those acquired last year.

[gsands] 30/6/2008 08:27

There are some clues in these results as to what is coming, if you read carefully:

The new website, myhome.com, brings all the brands together and provides for significant cross-selling opportunities. The call centre at the Group head office in Esher is receiving record numbers of enquiries from customers as a result of the awareness created by the website. Further work on the website will be carried out in the second half of the year to generate even more traffic.

[mister md] 30/6/2008 08:27

The net cost to the Group of this restructuring in the period amounted to £3.3m.

agreed the next set of results should be much better

[brando69] 30/6/2008 08:27

GSands - 30 Jun'08 - 08:01 - 118 of 128


This is a kitchen sink job.

Next results will be much better.

These bad results were priced in by the market. Little downside from here methinks.


LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[bigfatjulie22] 30/6/2008 08:26

How many times did i tell you that MYH would warn of profits ????????

[argy2] 30/6/2008 08:24

ayesha4

Not bad...13.5p

[happygolucky] 30/6/2008 08:24

IMHO the credit crunch is a big red herring - a loan of £25k is chickenfeed if you've got even half-decent credit history (and MYH should be cautious about allowing others to become franchisees anyway!). Also, if there have been 50 new franchisees in the last 3 months, it doesn't look like the situation is too bad....

On the customer side, I know that I would rather give up one night out a month than do my own cleaning - and I'm sure most of MYH customers would do the same (if they needed to). If you're that badly affected by the credit crunch, you probably aren't the type of person who would have a cleaner in the first place IMHO.

[gsands] 30/6/2008 08:18

Market cap now = turnover.

Profitability by year end will justify a much higher market cap IMO.

[pictureframe] 30/6/2008 08:15

The business model doesn't work, it most certainly wont work whilst we have a credit crunch. As I mentioned each franchise is extremely easy to replicate and can be started up at around a 1/4 of the cost.

Why would banks lend to a potential franchisee when the holding company is always making losses. Come back when the market cap is around 2.5 million may be worth a pure punt then.

[happygolucky] 30/6/2008 08:11

Care to share SW??

[gsands] 30/6/2008 08:11

Market cap here is now £8.9m.

That is a bit on the low side I think LOL!

[bigfatjulie22] 30/6/2008 08:11

I told you all many many times that there would be a profit warning and the company duly delivered one.

[still waiting] 30/6/2008 08:10

much better opps. around than this.