Tandem Share Discussion Threads

[actscap] 01/2/2024 07:45

Lower end of revenue expectations, no mention of the size of loss for the year. Outlook is so so. Rent out more warehouse space.

[amt] 01/2/2024 07:19

A better outlook so things are looking promising for a strong recovery in the share price to nearer to net asset value I would have thought. In these markets though it might just tread water until sense returns to the markets as interest rates are cut as I believe inflation will fall much faster than the market believes.

[castleford tiger] 19/1/2024 09:23

why would it be valued at 50p when the company has 400p of net assets?

As i say it would go private and be broken up and sold to release value.

The fact Mr Bragg continues to buy tells you there is value there.

The shares were quoted at 80p when it opened after the trading update, but i tried, and others did and no such price was available.

tiger

[my retirement fund] 18/1/2024 21:58

Mr Bragg is probably the only person supporting the shareprice from hitting 50p with his 15% holding, but even he doesn't possess a magic wand!

[castleford tiger] 18/1/2024 20:11

Another 1% added by Mr Bragg . That’s 50000 shares.
Added to those held by a group we are close to having a dig here

[castleford tiger] 18/1/2024 20:07

No no no
It would go private first

[onjohn] 18/1/2024 18:04

my 50p is a fair target now?

[thomasearnshaw] 17/1/2024 07:35

Retail under pressure. This may well warn once more

[castleford tiger] 14/12/2023 18:28

hxxps://toyworldmag.co.uk/hasbro-announces-raft-of-layoffs-globally/ (hxxps://toyworldmag.co.uk/hasbro-announces-raft-of-layoffs-globally/)

And this

[castleford tiger] 14/12/2023 18:27

Just what it’s like out there.

Source: hxxps://www.bike-eu.com/46590/canyon-early-discounting-strategy-drives-down-its-profit
Jan-Willem van Schaik
Published: 10:35
Last update: 10:36

KOBLENZ, Germany - The large-scale media campaigns offering major discounts on various bike categories this summer by Canyon was regarded rather unwelcome by many in the market. The company's latest financial results show a massive impact on the result; a push to revenue but killing the profit.

In combination with the high inventory in the market, many were afraid the Canyon campaign would result in a downward price spiral. The warehouse clearing would not serve any other purpose than that while the market outlook in the long was still good. The campaign was indeed followed by others in various markets, but seldomly on a scale like Canyon did. Was it a good decision by Canyon, probably with the financial support of their owner GBL, or not?

Canyon profit drops
As a result of its marketing campaign Canyon’s profit is down to nil between January and September, down from €13 million in 2022. In September the Canyon operation was even loss making at €-2 million versus a profit of €29 million year-on-year.

Between January and September Canyon reported a 23% increase in turnover from €506 million in 2022 to €621 this year. For the same period last year Canyon still reported a 39% increase in revenue. According to Canyon this is the result of higher discounts on certain bike categories and a supply shortage of high-demand bikes due to issues at one of its suppliers. These issues even unfavorably impacted value creation.

Market performance
Not many other bicycle brands have published their Q3 results for this year, but the impact of these discounting campaigns will be substantial. According to insiders and supported by market intelligence, the market performance is still above the level of the pre-pandemic years. However, increasing expenses throughout the supply chain makes 2023 a challenging financial year again. The warehouses are so fully packed with bicycles that not many companies dare to take many risks or drastic decisions. Canyon seems to have done so with extreme discounting. Time will tell which strategy will work out best.

‘Heavily discounting in the US’
In a statement, Canyon notes, “our performance is remarkable given the challenging and promotional market across categories and geographies and underscores the continued solid demand for Canyon premium bicycles. The business in the US, where competitors are discounting heavily, continues to contribute to the group’s growth. Additional growth during Q3 was hampered due to a supply shortage of road and gravel bikes – models that are in high demand – following production challenges at one of Canyon’s suppliers that have now been addressed.” Apparently the high inventory or the impact of interest rates were not a major cause for a decline in the result. Did Canyon manage to bring their inventory back

[my retirement fund] 13/12/2023 23:03

It's not even possible to get a 1000! There is no point in even being listed then. Jeez, delist and save 500K-1M per year just like that!

[castleford tiger] 13/12/2023 22:27

RCTurner
There is always the filter button.
Hope you are well
Have a lovely Christmas
Tiger

[castleford tiger] 13/12/2023 21:56

The shares were impossible to buy.
At one stage you could not get 1000

[actscap] 13/12/2023 15:02

Thanks. This is better than nothing but pretty small fry given he's the CEO.

[darrin1471] 13/12/2023 14:56

Peter Kimberley, Chief Executive Officer today purchased 9,168 at an average price of 108.67p
1,791 @ 111p
2,716 @ 110p
4,661 @ 107p

As a result, Peter Kimberley, together with his spouse, is now interested in a total of 49,668 Ordinary Shares, representing 0.91% of the Company's issued share capital.

[rcturner2] 13/12/2023 14:04

No surprise at 1 the truly dreadful performance here and 2 CTs continued delusional posting.

[actscap] 13/12/2023 13:17

We've gone from delivering a break-even position for FY23 to a 1.3m loss in the short space of 75 business days (between trading updates). Going concern must come in to question. Some insider buying would provide confidence, but suspect they know more than they're letting on in the update.

[castleford tiger] 13/12/2023 13:15

The new business that has been won will mean that we should make a net profit next year.
I think they will maintain a small dividend of say 3p

The total debt is probably under 4m so this is not a heavily geared company.

Whist the figures are bloody awful i think we have reached a low point in sales and profit/loss.

Peter has a good grip on this and he will be across the cost base.

Once stock has been sold these companies will have to come for more in 2024.

Its a long haul ,and tbh i wish we could take it off market especially at this level.
AMT
Yes i remember the caution you expressed and you were right.

These things go in cycles and i think a firm floor has now been set.

At least the building is going up in value as costs in construction continue to increase at around 10% pa

tiger

[my retirement fund] 13/12/2023 12:12

Its ironic they can not turn to the market for a sensible discounted fund raising, but they lack the shareholder base, no? They will need to either find some kind of death spiral equity financing to remain solvent or take a monumental haircut on the assets and sell the property to a circuit mortgage shark. Either options appear deathspiral. This seems is a company that has completely failed to prepare for a world of costly commercial financing and sluggish sales.

[cjohn] 13/12/2023 11:34

At the last report, they'd been in "technical breach" of their banking covenant.

On the basis of this update, the cash position will almost certainly have worsened since then. They are also now clearly loss-making. The breach will now be so "technical", it might be verging on the material.

I remain on the sidelines here, given the above, though sorely tempted to plunge in.


Like Castleford Tiger, I note the very large discount to tangible book value. But the lion's share of that asset value is in the freehold of the warehouse, which seems to be far too big for the business.

There's be no banking issues, if they released the cash tied up in that elephant.

[amt] 13/12/2023 10:41

Several years ago I remember getting a lot of stick here when I urged shareholders to let the Management get on with running the business and not put pressure on for increased dividends. I hope these people will learn that lesson this time around. Patience required. Cash is key at the moment for all companies.

[castleford tiger] 13/12/2023 08:14

nav is moire than 5x market cap

[smartmoney100] 13/12/2023 08:12

Could only manage to get 1000 @80p

[darrin1471] 13/12/2023 08:11

I can now get a few at 94.5 which is not as good as the 70p I tried to get on opening.