Studio Retail Share Discussion Threads

[apfindley] 14/2/2022 16:10

Oh very bad news here for holders.I was recently considering investing for potential recovery play but glad now I didn't..Unfortunately, IF they can salvage any value for shareholders, it would likely be as buyout of debt etc from administrators, and at the very very most shareholders could be lucky to retain 5% stake.But sadly that's an outside chance only.

[currencytrader1] 14/2/2022 16:07

They intend to announce administrators

[schroedar] 14/2/2022 15:49

Hey seek nice to see you follow me around with your usual prophecies of doom with the benefit of hindsight just to wind people up. I think you must eat more carrion than the average hyena

[sikhthetech] 14/2/2022 15:21

If they appoint administrators(it's an intention at the moment) then shareholders are wiped out.

The writing was on the wall for a while.

[masurenguy] 14/2/2022 14:52

Ref: #484. Get real - they are in administration - shareholders have been completely wiped out. Funds from any subsequent asset sales by the administrator will go to creditors, not shareholders.

[schroedar] 14/2/2022 14:34

Sadly, dream on. Shareholders equity is 100pc gone

[danboris2] 14/2/2022 14:32

I totally agree. Let's hope there is a way for this to be rescued without the shareholders being wiped out. It doesn't make sense for Frasers to have been buying last week if their intention was to buy assets out of administration

[schroedar] 14/2/2022 14:26

Unfathomable unless the banks just pulled the plug on the RCF and therefore with cross default including the securitisation (also through HSBC) which rendered the business model obsolete overnight. Appalling communication with shareholders. Left totally in the dark. Kendrick, Caldwell, Burke and their utterly useless woke NEDs need to be sued to high heaven and not one of them should ever be let within a million miles of a public company going forward

[danboris2] 14/2/2022 14:18

I just can't understand why it is not possible to do a placing / open offer

[schroedar] 14/2/2022 13:22

Agree. There must be a case to sue the directors personally. That last trading statement is blatantly untrue/fraudulent

[pokerperson] 14/2/2022 13:10

From 3 weeks ago. These directors need to be sued for misleading investors. Utterly negligent.

Studio currently has a fully drawn revolving credit facility of GBP50m and, with a 12-month EBITDA of c.GBP50m, is well within its key gearing covenant of 1.75x.

In addition, we are considering other controllable actions to increase short-term liquidity, alongside steps already taken to manage the pace of some of our medium-term capital investments.

We anticipate that the disruption to supply chains will continue throughout calendar 2022, and other inflationary pressures require us to take a more stringent approach to operating costs in FY23 to ensure we can continue to maintain great value products to our customers, and further reduce working capital requirements.

Paul Kendrick, Group CEO, commented:

"The fundamentals of Studio's business model are solid, notwithstanding the market challenges that have been exacerbated by our over-commitment to stock in the near term. The trading performance over Christmas, with sales up 18% over two years, shows our offer is resonating with a customer base of 2.3m. We will continue to drive the long-term profitability and success of the group."

[masurenguy] 14/2/2022 13:05

Parts, or all of the company, will be bought from the administrators but sadly existing shareholders here have been wiped out. I've no position having sold many years ago when they were still Findel.

[currencytrader1] 14/2/2022 12:57

Although I have written my investment off, this could be far from over. 25m against this business is not actually a lot..
Administrators are brought in to sort the mess out, liquidators wind it up.
My feeling here is they have screamed help, and we will see if anyone answers...

[freedom4uall] 14/2/2022 12:28

The M.A takeover of 161p was rejected, over 85% of this is owned by institutions, 25m could of easily been raised from them, But now its going into administration. How does MA or other institutions benefit from this going into Admin. Very strange.

[pokerperson] 14/2/2022 10:37

To be fair to Schroedar the views were 8 months apart and his admin comment was based on what looks to have been shocking management hence the complete 180 in view

[1gw] 14/2/2022 10:27

I think the reference is to the poster schroedar, who first predicted triumph, and then more presciently, disaster.

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schroedar - 07 Jun 2021 - 16:14:21 - 236 of 432

Skindle

I am afraid you have got this very wrong. This is worth 375-435 without a bid. What we are seeing now is short and simple Frasers dumping their stock which they need the cash from in their own business/buyback. Instititions like Ennisnore are topping up but sweating Ashley for his stock. All very technical, just like when Tosca dumped 3 years ago but will bounce hard when Frasers are done. The smart money is buying into the sell off. This is the most undervalued retail stock with the best growth prospects.


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schroedar 31 Jan '22 - 08:27 - 430 of 473 0 2 1

Buy it in administration which is where this is now headed

[markwell] 14/2/2022 10:01

Schroeders seem to have 19% here so why would they be happy to see that wiped out by administration?

[planit2] 14/2/2022 09:37

What did Schroders say, I must have missed that?

[pokerperson] 14/2/2022 09:26

You have to take your hat off to Schroder. He is nearly always spot on, however much people don’t like his messages.

[planit2] 14/2/2022 09:03

Looks like the outcome might have already be decided.

The business is viable and being in administration will be very damaging so they will not want to stay in this state very long. I expect some kind of offer from MA within a couple of weeks.

[1gw] 14/2/2022 08:27

Whole thing stinks if you ask me. I wonder if MA is refusing to support a placing and that prevents them from doing one? What about the credit side of the business - couldn't they flog some or all of that off to raise cash?

[masurenguy] 14/2/2022 08:24

Re: #466. Keith Chapman left 12 years ago. Does he still have a significant residual shareholding here?

Current Institutional Shareholders
Schroder Investment Management: 16.48m. 18.94%
Lombard Odier Asset Management: 9.80m. 11.26%
FIL Investment Advisors (UK): 8.63m. 9.92%
Ennismore Fund Management : 5.42m. 6.22%. 6.15%
Henderson Global Investors: 4.47m. 5.14%
Canaccord Genuity Wealth: 3.75m. 4.31%
Miton Asset Management: 2.30m. 2.64%
Norges Bank Investment Management: 1.90m. 2.18%

NB: I have no position here.

[danboris2] 14/2/2022 08:20

I wonder why a discounted placing is not an option. 25M does not seem such a large amount given the potential of this business to rebound

[solarno lopez] 14/2/2022 08:10

Keith Chapman wont be happy