Theworks.co.uk Share Discussion Threads

[chinahere] 30/8/2023 22:21

Great reply Omron!

I really think this should be a bargain, but I still can't fathom the accounts.

Still holding.

[omron] 30/8/2023 21:32

Well done to the UK accounting profession for making the accounts of a relatively simple retailer completely unintelligible. The IFRS16 adjustments make no sense at all - having to create a fictitious right of use asset to offset a lease liability on the balance sheet and then use the capital asset pricing model to create a weighted average cost of capital to adjust the profit and loss charge is bananas. I consider myself relatively financially literate (and qualified as an accountant) but I can't make head or tail of this report. The result is over half a million pounds being paid to KPMG, accounts being late and indecipherable and the CFO retiring early - who can blame him!Having said that, 28p share price and an EV of 8m gbp feels like a bargain to me!

[chinahere] 30/8/2023 21:25

Difficult to understand exactly what is happening in the accounts this time.

[dexterburt1] 30/8/2023 19:50

Any indication on why they changed assumptions from 2022?

[tr200g] 30/8/2023 18:53

All the audit delay was re impairment
I have spoken with management

Those who have sold or reduced- is it due to lower divi than the singers note stated?
CFO leaving?

So many small tweaks going on to turn up the dial on profit margins I believe

[casholaa] 30/8/2023 18:25

s34, could be margins or higher costs. They buy stuff to sell.

[dexterburt1] 30/8/2023 18:20

Anyone else read the prior year restatements relating to the impairment of right of use assets? FY21 equity drops from £8.8m to £(17.7)m... Few oddities with the change in discount rate methodology linked to impairment testing. Wonder how much of the audit hold up was around this section?

[s34icknote] 30/8/2023 16:37

So they expect to grow sales and profit in 2024 . Sales are growing .So why the drop in profit ???Am I missing something here ???Eps on pbt 5.0 was 8.8p

[s34icknote] 30/8/2023 16:35

FY24 onwards."Looking ahead, the macroeconomic environment remains uncertain. However, we are now well positioned to capitalise on strategic opportunities and given the momentum gained in the latter half of FY23 we expect to grow sales and profit in FY24. Reflecting confidence in the Group's prospects, the Board proposes a final dividend of 1.6 pence per share in respect of FY23

[hocuspocus1] 30/8/2023 15:51

£254,905  buys vs £247,006 sellsRef this is money

[crumppot] 30/8/2023 15:24

Unfortunately other investors are not so positive about the results.
The Works are getting too small to be on the LSE anymore. Maybe they should go on AIM?

[s34icknote] 30/8/2023 15:19

Looking forward to the div .The market valuations are skew Wiff !!Cash is king and this company will increase the cash pile at Christmas !!

[finkie] 30/8/2023 14:40

Hmmm not going to get back to yesterdays price but I remain comfortable that this is a decent turnover good management business that just needs to tweak the profit dial and all will be good.

Gla time to look at other stuff now.

[darrin1471] 30/8/2023 09:26

Adjusted PBT
FY21 -£2.8
FY22 £16.5 restated (was £10.1)
FY23 £10.1
FY24 forecast £2.8

Net bank cash:
FY21 £0.8
FY22 £16.3
FY23 £10.2

EBITDA:
FY21 £4.3
FY22 £16.6
FY23 £9.0
FY24 forecast £10.0

"At the Period end the Group had liquidity availability of GBP40.0m, including its undrawn GBP30.0m bank facility."

"Since the Period end, the Group has implemented a reduction in the size of the facility, which was undrawn throughout most of FY23, to GBP20.0m, and simultaneously extended its term such that it now expires on 30 November 2026 rather than 30 November 2025. The reduction in the facility will save approximately GBP0.15m in annual cash interest costs, and the smaller facility continues to provide liquidity availability significantly in excess of the actual anticipated requirement.".

"the Board hopes that FY23's EBITDA was a low point and that it will increase progressively in future"

[finkie] 30/8/2023 08:51

might get back to my buys yesterday of 31.25p.

My thought is with £280mm turnover, you only need a slight tweak here and there to get up to £18-20m EBITDA thats the market cap in one year!

Im happily holding but i think we might see a better price later today for any day traders....

[harry_david] 30/8/2023 08:22

The company is Happy to forecast a 10% increase in EBITDA for the current year when only 5 months have gone. If that is not confidence nothing is. The shares are cheap

[s34icknote] 30/8/2023 07:48

Yep How many stocks with 10 million cash and 1.6p div !! And the shares go down .Eps on 2.8 million must be 5p ?Pe ration of 5

[royaloak] 30/8/2023 07:27

Look a touch oversold to me now.

[arab3] 30/8/2023 07:22

How much does anyone here spend in their store in a year ?

[s34icknote] 30/8/2023 07:07

2.8 million profit on a valuation less cash of 10 million is cheap and paying a 1.6p div Over reaction on a already discounted Valuation

[finkie] 30/8/2023 07:02

28/30 not too bad might even go north when people study etc

[darrin1471] 30/8/2023 07:01

"The Group's compiled estimate of the market's Adjusted PBT forecast for FY24 is approximately GBP2.8m."

[kaos3] 30/8/2023 06:58

Disposable income squèze?

I like the management a lot

[ayl30] 30/8/2023 06:53

Sales growth was only just over inflation rate yet mgt say trading met expectations. Sounds dodgy to me. I sold my holding some time ago, glad I did based on these numbers

[finkie] 30/8/2023 06:44

Online sales £34m even though down, the potential is here.