Patisserie Share Discussion Threads

[ursus] 12/10/2018 16:53

One thing I cannot discern from the placing announcement is any real hint about how the fraud has operated. Is it a fraud by which the ex CFO (and surely others) concealed a losing trading performance with false figures? Or is it a fraud by which he/they nicked the company's money made from profitable trading?

I wd want to know the answer to that before diving in to buy placing shares - or already listed shares after the suspension is lifted.

[lefrene] 12/10/2018 16:51

The alternative was to lose the lot, Luke knows this and his insti holders also know it. CAKE won't be enjoying a high rating if/when it comes back to the market. I'd say that the man's reputation is well and truly blown away too.

[hvs] 12/10/2018 16:50

Based on the current information available to them, the Directors believe that upon completion of this equity and debt fundraising, the Group will be able to continue trading in its current form for the foreseeable future."

The key word is "Current" how current is it ??? And if it so profitable why this debacle ?? Why ???

Is LUKE JOHNSON JEWISH is he KOSHER ???

[cockneytrader] 12/10/2018 16:47

Wife: you should thank your lucky stars that 2500 people still have jobs.
Cakeman: Yes. Now what do you recommend for my 10 year STRETCH, Vaseline or KY?

[sleepy] 12/10/2018 16:46

I would like to think WELL DONE LUKE!

[quepassa] 12/10/2018 16:45

I made the comment earlier today that we did not know if the business was fundamentally profitable and viable and worth being saved.

We have our answer.

Extract from the Placing agreement

"Based on the current information available to them, the Directors believe that upon completion of this equity and debt fundraising, the Group will be able to continue trading in its current form for the foreseeable future."


Credit where credit's due. Luke Johnson has given PatVal a 3 year INTEREST FREE £10m loan and another £10m bridging loan repayable from the Placing proceeds. Both out of his own pocket.

I hope PatVal survives this appalling accounting fraud and that the chain lives to fight another day.


ALL IMO> DYOR.
QP

[thegreatgeraldo] 12/10/2018 16:43

I'm still totally bemused that Johnson was apparently completely unaware of what was going on, but give him some credit for giving it a chance & coming up with a plan pretty sharpish

[danny baker] 12/10/2018 16:42

Mr10% LJ cannot underwrite the placing in case he is left with some shares which would force a mandatory takeover offer at 50p a share under the Takeover Code. Theoretically he could seek a whitewash but I very much doubt that he wants to increase his shareholding. Loans work better for him until everything becomes clearer.

[quepassa] 12/10/2018 16:40

administration. closure. loss of 2500 jobs.

[sooty snipes] 12/10/2018 16:39

"Credit where credit's due. Luke Johnson has given PatVal a 3 year INTEREST FREE £10m loan and another £10m bridging loan repayable from the Placing proceeds. Both out of his own pocket."


Errrhh what was his alternative????

[mrtenpercent] 12/10/2018 16:37

Here's the plan made simple:
£ 5m from accelerated book build placing
£ 10m 3 year loan from LJ
£ 10m bridging loan from LJ
_____
£ 25m
£ 10m from conditional placing
£-10m bridging loan to be repaid to LJ
_____
£ 25m

Question: Why is LJ not underwriting the placings? Is he prevented from doing this because if the rescue plan works the shares will increase in value and he might benefit? Alternatively why not just donate £10m to the business from which he has extracted over £50m? Just asking.

Looking forward to hearing about the revised directors long term incentive schemes.

[thegreatgeraldo] 12/10/2018 16:36

Noticed this last night, from the 2014 Finals.......


"As our external bank debt was repaid, we accelerated the timing of our payment cycle, this has resulted in cash being temporarily lower (£2.4m) at the balance sheet date; we expect this to realign in 2015."

[hvs] 12/10/2018 16:34

...I very much doubt the £12 million they've suggested for ebitda was "plucked from the air". If you have nothing intelligent or coherent to say, why don't you go & play somewhere else?

Like JEWISH Israel you mean ?

The IDIOTS have said very very clearly that they do not know what went wrong. So where does the £ 10 mill come from and what about write downs to come

[quepassa] 12/10/2018 16:31

I made the comment earlier today that we did not know if the business was fundamentally profitable and viable and worth being saved.

We have our answer.

Extract from the Placing agreement

"Based on the current information available to them, the Directors believe that upon completion of this equity and debt fundraising, the Group will be able to continue trading in its current form for the foreseeable future."


Credit where credit's due. Luke Johnson has given PatVal a 3 year INTEREST FREE £10m loan and another £10m bridging loan repayable from the Placing proceeds. Both out of his own pocket.

I hope PatVal survives this appalling accounting fraud and that the chain lives to fight another day.


ALL IMO> DYOR.
QP

[thegreatgeraldo] 12/10/2018 16:31

hvs
12 Oct '18 - 16:27 - 1478 of 1478
0 0 0

They dont know how profitable they were and as for the £ 10 mill plucked out of thin air, plenty plenty write offs to come.



...I very much doubt the £12 million they've suggested for ebitda was "plucked from the air". If you have nothing intelligent or coherent to say, why don't you go & play somewhere else?

[hvs] 12/10/2018 16:27

Did he siphon off the circa 30 odd million???

There was NO MONEY thats why the bills went unpaid.

lol !!!!!!

m/cap of £65 mill & a business delivering close to £10 mill pa clean profit nStill want your cake and eat it ????

They dont know how profitable they were and as for the £ 10 mill plucked out of thin air, plenty plenty write offs to come.

[thegreatgeraldo] 12/10/2018 16:27

Whoever's behind this, I hope they throw the book(s) at him..... profits from exercising options & selling the stock should be treated as proceeds of crime & confiscated at the very least.

With the UK's draconian laws against dodgy directors, he'll probably be barred from holding any directorships for a few months as well

[kemche] 12/10/2018 16:26

Who was signing off the monthly management accounts? What was the audit committee doing? If the debt is due to HSBC then should they not have raised concern? Where did GT get their reassurance for bank balances from? Did they do a creditors circular?

More questions than answers at the moment.

I am now prone to thinking that LJ became a "successful" businessman less by design than by accident.

[argo_7a] 12/10/2018 16:25

So margins are half what they were stated then @ 10%. So we know that sales are 120m and EBITDA 12m. Let’s put the 12m on a multiple of 5x; EV becomes 60m. We know net debt is 10m so equity value of 50m. Issuing 30m new shares on 100m base; 130m shs in issue. 50m / 130m = a target price of 37p.

[thegreatgeraldo] 12/10/2018 16:21

Decent punt for an insti @50p..... after the placing, 130 mill shares @ 50p would give a m/cap of £65 mill & a business delivering close to £10 mill pa clean profit (not that ebitda nonsense)..... risk is they haven't got to the bottom of the problem.