wonder how their chocolate factory sales are going?
Printable View
wonder how their chocolate factory sales are going?
The market should really be spun off before to long and i imagine the board will be considering it pretty soon.
It should be high on the boards cup of tea and cakes soon. Unless it support whs in a way a third party cant then really they have no reason to keep it.
They started the year with $160.5m.
They had this to say at the time of the annual result.
The Group’s cash deposits have reduced significantly since balance date as a result of the decreased
sales but the Group’s bank debt facilities remain undrawn. The mere fact they saw fit to mention the fact that debt facilities were undrawn suggests the impact on cash was very significant.
What does "reduced significantly" really mean is anyone's guess but lets have a guess at $70m seeing as lockdown clearly hit them hard and they choose not to take Govt support. That takes us to $90m as a guess.
The dividend paid in November of 17.5 cps took $60.7m so we're down to $29.3m but we have earnings of about $40m + will have recovered the $70m but against that capex for the year of $115 - $135m, (assume mid point of $125m for the year and suppose half expended this half = $62.5m.
Crunching all that takes cash on hand down to $76.8m at the half year point from $160.5m at the beginning, (assuming no material change in stock held).
Gosh, that's a HUGE reduction in their financial strength. I think our laser eyed friend is in fantasy land thinking they have circa $200m cash.
In fact, I think from the tone of yesterday's announcement about increased digital spend and increased spend on the market that capex could be more front end loaded this year so could have materially less than $76m.
Not really the company they were 6 months ago are they ! But they did take on a new loan with special ESG terms so I suppose all is forgiven :D
Dont know what its worth winner but if it has some value and its not tightly API'd to the new inventory platforms they are developing then i sure the board wont be just steering at the glass ceiling..
SELLING IT AT SOME POINT or spinning off would be high on the list if they arnt tied to it by pure code and even if they are they could always tie it up in a legal agreement that they have access to the REST API.
I dont think people understand that these days your can abstract your platform away from static code and you can therefore generate the connection at runtime.
It really should not matter what platform they use if they can abstract it away from static compiled Code.
If they have they are free to do anything they like!
It no longer a STATIC world where you cant move a new strategy into place.
Business are not static and therefore any valuations placed on them are historic only.
its the future that matters not the past.
What a loss making company is worth is the subject of a major downward rerating on the NASDAQ at present as I am sure you know Waltzing. I would respectfully suggest loss making online companies who have revenue in decline and losses expanding in the current explosive growth environment for online sales have very little value, if any. Right there, I think that's the key difference between how you see the company and I see it.
You’ve outlined your views on the outlook for NZ retail
You could well be right …..there were signs of weakness in NZ retail sales in June and July ( which was pretty August lockdowns.) and I have an inkling that as dust settles soon that weakness will continue.
But remember retail sales in NZ have never declined this century ….it’s just no or little growth in sales will hurt retailers.
Be interesting to see what eventuates
I doubt Amazon will ever expand in earnest to New Zealand - we are just to small, and they have another half decade at least of building out amazon.com.au.
But jeesh how good is mightyape. Talk about excellent execution and customer service. I hope kogan (who purchased them last year) don't muck them up with too many kogan house products. but i see they have smartly branded some of them as mighty ape in this market. Just can't let the quality suffer as unlike other domestic eretailers (fishpond, the nile) they have done a fine job of keeping supplier product quality high.
Mightyape has a pretty great range and are light years ahead of the warehouse in ecommerce
From 2021 Annual Report
Value of Computer Software on books is $94m (Cost $196m less accumulated impairment and amortisation of $102m)
They spent $45m on new stuff in 2021
I have no idea whether is reasonable or not but it seems an awful lot of money for a relativity simple retail business.
Hope NL have found the 2 TV's the system said they had but weren't physically there
Price action tomorrow in response to the profit downgrade is going to come down to what the market expected vs what is now expected to be the full year's results?
Certainly don't see buyers stepping up to buy any shares but shorters & traders will be out in force.