Real Good Food Share Discussion Threads

[buywell3] 16/8/2019 14:44

Check out the debt

[barnetpeter] 13/6/2019 14:19

Moving up well.....

[buywell3] 10/6/2019 16:12

buywell3 8 Aug '17 - 07:31 - 2224 of 2243 0 1 Edit

And catch a falling knife

This is a very bad chart

Not seen its bottom yet IMO

[davidosh] 31/5/2019 08:45

It is plain wrong that innocent shareholders and a new board suffer the costs and fines associated with this investigation. The three directors involved should be barred from being directors anywhere for ten years and they should be the ones receiving hefty fines and even jail sentences if necessary.....this does not send out the right message as directors can clearly do as they please !!

[pugugly] 30/5/2019 07:42

chillpill - Fully agree re shareholder costs but that is the name of the game - I presume that the company should have a claim against those directors who were responsible but they may be men of straw and court costs might be more money down the drain - Any legal eagle able to comment.

[pugugly] 30/5/2019 06:41

PUBLIC CENSURE AND FINE –REAL GOOD FOOD PLC

A bit more than a nominal slap on the wrist - Now will any criminal or civil prosecutions follow?

[pugugly] 07/1/2019 10:48

Memo to self for when I am tempted by ratio of turnover to market cap - Must remember DEBT --- "Net debt at 30 September 2018 of GBP29.9 million "

[arthur_lame_stocks] 07/11/2018 07:12

A snippet from the Downing letter:

"Real Good Food
In the period, Real Good Food announced the disposal of Hayden’s bakery, with the proceeds used to pay down the rest of the term debt. At the time of our investment into the group, there was an allocation to Hayden’s for new capital equipment to improve throughput and efficiencies, particularly on a new yumyum line. This investment was made on the back of contracted demand from supermarkets. Post investment, Hayden’s began underperforming on margin assumptions whilst demand remained promising. Ultimately, and with the rest of the change which was going on in the group, the management team decided that it was better to divest this business now, rather than try to recover margin and bring it into profitability. On an annual run rate, we think the business was losing around £2 million and this cash could be used better elsewhere. The exit price was at net asset value
which is disappointing but also reasonable given the cash losses. This leaves the group with two core, cash generative subsidiaries – Renshaw and Brighter Foods – as well as a couple of smaller subsidiaries. Renshaw and Brighter are both performing well on a revenue and profit basis. Stockdale, Downing’s house broker, recently published a note which pointed to combined historic EBITDA of these businesses of over £8.5 million. This would value the group today at under 1x EBITDA, and sub 5x EV/EBITDA. Given the potential for these businesses to grow and the stability of the capital structure of the group (no third-party debt) we think that this represents great value although it is unlikely that market sentiment will adopt this view until more progress can be demonstrated. There is still hard work to be done to ultimately realise value, but we believe the management team in place are top class and now well aligned to an outcome which should favour shareholders."

[briangeeee] 28/9/2018 16:58

The high barrier to obtaining criminal convictions probably prevents action. Totte and his crony Salter unfortunately milked the company for fees beyond their normal basic entitlement. Such arrangements tend to prevent the governance expected. Fortunately they're all too old to trouble another listed company, but unfortunately the behavior will carry on in others. Let's hope the company can flourish now they're gone.

[barnetpeter] 28/9/2018 15:43

125 million revenue....a lot of business. Dreadful actions by former directors imo nearly bust this. Still got a long way to go ....

[jason_scrap] 28/9/2018 13:46

Don't think so. That's just spreading fear...They have £6m cash from sale of Hayden's. Read then more recent RNS's for fuller picture.

[value hound] 28/9/2018 12:15

Looks like they're going to have to raise money to affect a turnaround tho?

[typo56] 28/9/2018 11:37

What action, if any, has been taken against Pieter Totté?

[jason_scrap] 28/9/2018 11:19

Excellent update to be fair. Was expecting horrendous results because hardly any interest was shown at all by market on the last few RNS's. Assets sales, new BOD members, paying off of shareholder debts, general streamlining of business. Price won't stay at these levels for long IMHO. ?

[jason_scrap] 27/9/2018 12:20

https://beta.companieshouse.gov.uk/company/04666282/filing-history

[red ninja] 27/9/2018 11:45

Downings have some loan notes that convert at 5p I believe, have you included that in your calculations ?

[barnetpeter] 27/9/2018 07:32

Only got the placing stock nowadays. The price has been moving up daily and I guess the company is very busy with Xmas orders. Could easily get back to 20 pence I guess.

[jailbird] 18/7/2018 22:36

surprised this has not tanked to near placing price..

[buywell3] 11/6/2018 12:22

buywell3 8 Aug '17 - 07:31 - 2224 of 2243 0 1 Edit

And catch a falling knife

This is a very bad chart

Not seen its bottom yet IMO