Robert Wiseman Dairies Share Discussion Threads

[haywards26] 14/1/2012 10:35

In the above article one analyst is suggesting a price of around 3.50-3.60 would perhaps be enough to seal the deal. Pure conjecture but that seems reasonable to me. Taking into account the tough trading conditions and reduced profitability RWD are experiencing.

[gordy36] 14/1/2012 09:41

City reaction to the announcement suggested a deal was "highly likely". "I think if the Wiseman brothers have mentally decided to sell, then they will be keen to try and make sure a deal goes through," he said, adding that he also thought it unlikely that another potential bidder would emerge.

[little beaker] 13/1/2012 15:13

Nice insider trading prior to the announcement.

Don't worry tho guys, the FSA will track down the perpetrators, lol.

[aleks_atanasov] 13/1/2012 14:05

for now it seems its only one, if there is any speculation in the sunday papers tho, a monday morning rns is likely

edit: but its true the family has 30% holding.it might get interesting.

[jacks13] 13/1/2012 13:46

The Wiseman family have a large stake in this, they're unlikely to want to let it go cheaply. They are as aware as anyone that the approach is opportunistic but the outcome will depend I suppose, as ever, on the attitude of the institutional investors.
Competition issues notwithstanding are there any other likely bidders?

[haywards26] 13/1/2012 13:39

Be interesting to see what region of share price is being discussed. I would hope 3.50 as a bare minimum!!

[aleks_atanasov] 13/1/2012 13:38

with the recent share price weakness wonder how much the premium's going to be.

[muffinhead] 13/1/2012 13:09

Muller can f...off

[randomwalker] 13/1/2012 12:11

startling move today

The price of dried milk as a commodity has been rising sharply, but the future for RWD must involve either creating premium brands or being bought by a company with premium products that can use RWD's milk.

[muffinhead] 02/12/2011 08:51

in the acummulation zone now but slow recovery imo

[muffinhead] 23/11/2011 21:00

Supermarkets must love the dairy industry...true enough milk price inflation down 2.16% last month

[muffinhead] 23/11/2011 20:56

without the increase in debt to pay bills, i don't see a H1 profit just the top line appearance of a positive operating cashflow of £4.1 million

Dairy Crest H1 results, you see similar debt increase trick to flatter the top line

margins are currently negative and dairy industry overcapacity may need taking out to force margin increases

[salpara111] 23/11/2011 11:04

Unfortunately they have no pricing power and their costs are increasing, it will not take much to push that wafer thin margin into negative territory.

I would imagine they will have to trim the divi.

I will keep an eye on them but cant see a case for investing currently. If the next set of results shows an improvement in margins then I could be tempted but I doubt that they will.

[masurenguy] 21/11/2011 08:42

If they maintain the final dividend of 12.25p then the yield at the current price will be 6.7%. However, if they cut it - which seems highly likely - to say 5.75p then the yield will be just over 4%, which is not particularly attractive compared to many other dividend paying companies.

[spob] 15/11/2011 10:03

Robert Wiseman cleans up spilt milkBy John Hughman, 14 November 2011

Robert Wiseman 's half-year results contained few surprises, with profits continuing to fall as a result of rising input costs and the intensely competitive liquid milk market that led it to warn on profits several times over the past year. It's an environment that management described as "the toughest in any of our recollections" and broker Peel Hunt estimates that profit per litre has halved to 1.14p over the year.

Given the pressures the dairy producer faces - including three increases in the prices paid to dairy farmers since March - the focus has been on driving efficiencies and reducing costs. Increased volumes are also going some way towards mitigating the margin impact of higher input costs - in August it began supplying 100 per cent of the Co-op's branded milk, and was also awarded an exclusive contract to supply Tesco's organic milk.

Wiseman also revealed a £2m investment in a new joint venture with New Zealand's A2 Corp, which produces milk aimed at those with mild dairy intolerance. Wiseman aims to launch a similar product in the UK next summer which, despite commanding a huge price premium, is Australia's fastest growing grocery line.

Numis Securities expects full-year pre-tax profits of £21.7m and EPS of 22.6p (2011: £35.8m/37.3p).


ROBERT WISEMAN DAIRIES (RWD)
ORD PRICE: 286p MARKET VALUE: £202m
TOUCH: 285-287p 12-MONTH HIGH: 372p LOW: 272p
DIVIDEND YIELD: 6.3% PE RATIO: 8
NET ASSET VALUE: 236p NET DEBT: 17%



Half-year to 1 Oct Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2010 453 20.2 21.8 5.75
2011 458 11.8 17.8 5.75
% change +1 -42 -18 -
Ex-div: 2 Feb

Payment: 28 Dec



IC VIEW:
Wiseman's strong financial position means its dividend looks safe and the A2 deal could add meaningful volumes. But dairy market difficulties are unlikely to ease any time soon so, for now, the shares are fairly priced.

Last IC view: Fairly, 328p, 17 May 2011

[muffinhead] 14/11/2011 08:09

Cash flow issues......
"Net debt increased to GBP28.2 million, compared to GBP21.5 million at 2 October 2010 and GBP4.9 million at 2 April 2011. The increase in debt is primarily attributable to the movement in working capital balances"


"There was a larger decline in the overall cash generated from operations from GBP21.1 million in the prior interim period to GBP4.1 million due to the cash outflows in respect of working capital balances."


debt increase by 23.3 million in 6 months for working capital

£4.1 million cashflow will pay the interim dividend

[muffinhead] 11/11/2011 16:56

Cheese offsets poor Dairy Crest milk returns


£533m dairy revenue...profit £5.8m
1.08% profit margin

[muffinhead] 06/11/2011 22:24

At 0750 and 1630 there is an auction, the UT trade is auctioned at the price where the LSE computer calculates that the most stock can be executed, if you've noticed a price drop during late afternoon and then seen volume go through in the auction then maybe someone had a large sale order to complete and tried to do it in the auction.

So.....the stock may be oversold as the large sale is finished


OR... maybe the large order wasn't completed and will carry on

[4spiel] 04/11/2011 20:46

Yes -why the drop ? No apparent big sells ! Results pending 14/11 should show some input from Co-op.