Myhome Share Discussion Threads

[gsands] 30/6/2008 14:52

Retail punters flee the market:

[gsands] 30/6/2008 14:48

Oops! Take cover, stock basher attack!!!

[marycurer] 30/6/2008 14:47

GSands - 30 Jun'08 - 14:42 - 409 of 411

The results were fine!






results well below market forecasts and he thinks they were fine...absolutely hilarious you could not make this stuff up if you tried

[bigfatjulie22] 30/6/2008 14:44

Gsands

In all seriousness if you thought these results were fine you need your head testing.

MYH is doomed.

[bigfatjulie22] 30/6/2008 14:44

Gsands

In all seriousness if you thought these results were fine you need your head testing.

MYH is doomed.

[gsands] 30/6/2008 14:42

The results were fine!

Growing franchisee numbers (currently growing at 50 per quarter).

Record number of new customers.

Yes - there have been some one off structuring costs, and growth is perhaps slower than some analysts expected.

But I am very happy with the results.

[marycurer] 30/6/2008 14:34

gsands and master rsi you should be ashamed of your incessant ramping when we told you results would be diabolical.

the doubters will have no doubt in the future as to who they should listen to in the future.


gsands and rsi you owe many an apology

[gsands] 30/6/2008 14:30

Yep - and all the insiders knew it, which is why no one was buying before the results....

[bigfatjulie22] 30/6/2008 14:29

I told everyone on here for weeks that a profit warning would come and it duly did.

[gsands] 30/6/2008 14:23

It seems to me that with the subdued feedback we are getting from visiting analysts and the board, that the company is finally learning to play the 'expectations management' game.

First rule is:

1. Talk it down, deliver ahead. I.e. always make sure results exceed expectations.
2. When company is about to commence growth after a difficult period, slam dunk the market with 'kitchen sink' news, and build from that floor.

[brando69] 30/6/2008 14:22

and were they being sensible when they were presenting it as a buy at circa 80 and 90p?

[gsands] 30/6/2008 14:18

Many thanks doughboy.

A fairly sensible piece from t1ps I would say.

A three bagger in 18 months will do me fine.

[doughboy66] 30/6/2008 14:12

30th June 2008 Analyst: Wenyi Liu
[e-mail]
020 7562 3377



Myhome International* – Interims, Site Visit and Forecast/Price target Reduction


Key Data

EPIC
MYH

Share price
19.75p

Spread
19.5p – 20p

NMS
2,000

Total no. of shares
63.546 million

Market Cap
£12.55 million

Cash
£200,000

Net debt
£8 million

12 Month Range
14p – 103.5p

Market
AIM

Website
www.myhome.com

Sector
General Retailers

Contact
Russell O'Connell
01372 471 573

Myhome International has announced its interim results for the period ended 31st March 2008 which contain an unexpectedly large re-organisation charge. As a result of this, and a cautious note on the effect of a macro-economic slowdown, we have reduced our full year forecasts and our target price. A recent visit to the company's headquarters in Esher has reassured us that the longer term growth story is on track but the benefits will only start to be seen in the year to 30th September 2009 rather than in the current year. It is on the basis of the outlook for next year that we continue to see enough upside to justify a recommendation of buy.

In the first half of this year, revenues increased by 151.4% from £1.84 million to £4.63 million, largely as a result of November's acquisition of ChipsAway, but also reflecting steady growth across the "old" Myhome businesses. At a headline operating level, a loss of £2.81 million compared poorly with the £0.74 million profit reported in 2007. However the adjusted operating profit before reorganisation costs of £3.3 million, was £479,000 - which equates to underlying earnings per share of 0.79p - compared to £742,000 and 1.83p for first half of 2007. Myhome believes that its restructuring programme will deliver future annual savings of at least £500,000 per annum. The company generated £300,000 of operational cashflow but after the restructuring costs and some acquisition costs the outflow was £2.4 million and period end net debt was £8.6 million.

The aggressive acquisition strategy pursued between 2005 and 2007 which culminated in the £16 million purchase of ChipsAway saw a dramatic increase in the size of the Myhome business but this inevitably added costs to management – moreover the company was, historically, failing to deliver the cross-selling benefits between its various operations which it had hoped for. The closure of two subsidiary offices and the creation of two distinct business divisions, each with its own managing director will bring greater efficiencies and is also resulting in more effective group-wide marketing and cross-selling. The restructuring programme resulted in a number of redundancies, the closure of non-core offices and also included write-downs in the carrying value of certain assets.

The first half numbers are quite clearly disappointing but the company stresses that the initiatives being taken are already bearing fruit. In the first half of this year 77 new franchises were recruited – so far in April, May and June 50 have been signed up. However Myhome flags that the credit crunch is making it harder for some potential franchisees to obtain the £30,000 needed to purchase a franchise and this may slow second half recruitment. Myhome also states that there are some signs that job insecurity among its cash-rich but time poor clientele could affect franchise revenues in the second half.

We forecast revenue for the year to September 30th 2008 and 2009 respectively of £10.4 million and £12.7 million but we have reduced our underlying pre-tax estimate for this year from £2.5 million to £1.1 million and for next year we have reduced our forecast from £3.25 million to £2.4 million. The disappointing performance of the ChipsAway business means that there should be no deferred earn out consideration so Myhome is in a position to start reducing its debt steadily and its balance sheet is not under threat. By 2009 if Myhome can deliver on its revised forecasts it will again be seen as a growth play and as such we would value this company on 10 times forecast 2009 earnings. As such we are reducing our price target from 68p to 45p but at 19.75p that is enough upside to justify a maintained stance of buy.

[brando69] 30/6/2008 14:08

is nigel wray still sitting on a big wedge of these?

that's what convinced wonkyflaps to pile in... like a puppy dog.

what a shower of sugarballs

[happygolucky] 30/6/2008 14:06

I agree GSands - I was very disappointed to hear the phrase "challenging times" used so many times. Everyone knows that times are difficult, but it's not wrong to mention the good points, especially things like increased franchisee numbers which are fundamental to the development of the business.

I remain impressed by the company, but much less keen on the management - hopefully the new directors will help propel MYH to the next level, as it still has a very 'small-time' feel at the moment.

All IMHO, DYOR etc

Regards
HGL

[gsands] 30/6/2008 12:54

Brandon, I hope you are enjoying yourself.

If you want to short this stock (unlikely) or encourage others to sell, then that's fine with me.

I've done my research and I believe the market has got this company wrong. Therefore I have bought.

To me these results are an obvious 'kitchen sink' job. The management seem almost deliberately bearish. There are a few nuggets in the statement, however, for the keen eyed reader. Nuggets which suggest that the next six months will be much better.

I like the company. I like the business model and I believe they can grow, organically, into a very large company indeed.

[brando69] 30/6/2008 12:42

GSands - 18 Jun'08 - 10:42 - 47 of 165


I received a copy of the annual accounts yesterday.

I note the company sold a master franchise to someone in Australia for the not inconsiderable sum of £400k.

Another worker bee is hopefully busy over there now collecting nectar for the company.


MORE LIKE TOO MANY DRONES SUCKING FROM THE HONEY POT....

[brando69] 30/6/2008 12:41

GSands - 19 Jun'08 - 11:37 - 68 of 164


Slapdash,

The value here is so apparent that I find myself unable to understand your assessment of the risk/reward here.

Do you want opportunity to be spoon fed to you? Because if that's what your waiting for it will never happen.


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

[brando69] 30/6/2008 12:32

GSands - 29 Jun'08 - 21:52 - 106 of 158


30p ++ by close of business Monday.

[gsands] 30/6/2008 12:25

It could be a while before more news. Potentially six months. In the meantime one must consider the possibility if the stock drifting further.

This is a very sick market.

However, I for one, am convinced that from this point in we will see some good solid organic growth in the company.

I have purchased my stock and will continue to add on weakness.

[happygolucky] 30/6/2008 12:20

In Gsands defence, he didn't say which Monday ;-)