Colefax lest it not be forgotten also have about 18 million of cash - their factory in Loughborough and Milton Keynes warehouses (SDG that is)must be worth a lot plus their Lancashire factory (standfast and barracks) occupies an enormous 9 acre site add in the cash and all the intellectual rights of William Morris and Sanderson and the the market is valuing the whole shebang at less than what was paid for Clarke and Clarke |
Is that not part of the issue?.
I've made similar points for 12 months plus here.
CFX is the nearest listed UK comparable. |
That’s right. CFX have a warehouse in Wandsworth and I suspect have sdg manufacture their wall paper. |
I don't think CFX manufacture their own stuff though. |
SDG, as WGB, stayed robustly profitable during the GFC.
I previously posted a FY statement from the '08/09 financial crisis.
CFX remains robustly profitable, as Salver is aware.
There are arguably far too many excuses, reasons and bullsh1t for the dire performance (ex licences).
Are we really saying that current conditions are more challenging then the GFC.. |
I agree about a pe bid salver2 and note that the FD has a pe background. I think the property in Loughborough may be worth an arm and a leg and from looking at it it is right adjacent to a load of new builds.
I wouldn't be surprised to see manufacturing shipped off to the Far East.
The other factory looks to be on it's last legs and is not in a desirable area. |
All LM has done is line her own pocket, the amount she picks up id disgusting IMO. Tweak their KPI's to ensure they still get their bonuses despite the fall in mk cap. |
salver2
I'd have to disagree that LM has done a bad job, she's expanded licensing a great deal and don't forget the consumer may still be suffering from a hangover after the lockdown splurge. |
Ooooh, they sold some wallpaper to King Sausage~Fingers! |
New 52w low and back to 2020 Covid levels.Schroders selling again?.....and no sign of the BoD backing up the lorry. |
I don't get it, they need to take cost out of the business not add more in |
V easy to upfront. Let's say they sign an agreement where a company guarantees to pay SDG £2m a year for 3 years. You can opt to account for that as £6m revenue in the year it is signed and create a corresponding receivable in the cashflow statement. So suddenly metrics like Gross Profit, Operating Profit, and EPS (on which management is no doubt incentivized) go up. That's why one needs to keep an eye on the cashflow statement (THE WHOLE TIME!).
In the meantime, senior NEDs and executives gorge themselves at the expense of shareholders. I do think there is a case for every board having a major shareholder on the board. |
Minimum guaranteed licensing receivables
In accordance with IFRS 15, the Group recognises the fair value of fixed minimum guaranteed income that arises under multi-year licensing agreements, in full upon signature of the agreement, provided there are no further performance conditions for the Group to fulfil. A corresponding receivable balance is generated which then reduces as payments are received from the licence partner in accordance with the performance obligations laid down in the agreement (usually the passing of time) |
Interesting ! How can see the licensing revenue has been brought forward ? |
Your comment
It would appear that they accelerate some of this licensing revenue (that makes me nervous)
It shouldn't - in fact it should give you comfort as that's how the accounting standards insist its recorded.
But I do agree with your other observations (and those noting that the directors cheque books are locked away) |
Woozle - or ripe for takeover. Great IP. |
I'm an investor in CFX and thought I'd go through the report and accounts as a read-across and see if SDG is interesting. A few observations:
If you back out of the licensing business, it appears to be loss-making
It would appear that they accelerate some of this licensing revenue (that makes me nervous)
I'm surprised that they are loss-making on the luxury brands when you consider the cash generation at CFX
Chair and NEDs paid an awful lot of money for such a small company
There are too many accountants on the Board
Managing defined benefit pension schemes
On the plus side
CEO has a good pedigree
It has some excellent brands (which they could sell to CFX if it becomes unstuck)
The bottom line is that if the licensing does not deliver the business is in trouble. |
A bit late on the ..profit warning coming!.
But yes, the complete lack of any BOD buying looks..... |
"Our forward expenditure programme is closely aligned to our Live Beautiful strategy with capital maintenance projects only being approved if they can be proven to support us on our journey to ZeroBy30."
LTIP performance condition "The third underpin is a sustainability measure, which includes making progress on the roadmap to the NetZeroby30 pledge."
Really ?
Not with my cash. I have done well with Walker Greenbank over the years but I think they have lost their business focus at a bad time. If the "improvement in trading" on which they are "reliant" does not come there could be a nasty profit warning coming. |
I don’t disagree with you -pretty poor -they need to pull a rabbit out of a hat somewhere |
Not a single BOD buy post update, oh my. |
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