oldjoe1
08 Jun 2018
Findel Online Gem And Way Undervalued. FDL Findel........ online retailer wholesaler.Came up on my screener and after quite a lot of research taken a healthy position. Spread is a little wide but helps to buy in 2 tranches or more.Last results just a couple of days ago.......<a href='[link] target='window'>[link] are confident in the medium-term prospects for the Group, with Express Gifts able to see further growth in its customer base through its clear focus on providing great value products to its customers and transforming itself for a digital future. Express Gifts aims to be forward-looking and proactive in its approach to financial services regulation and risk management to ensure that it achieves sustainable returns.The operational turnaround of Education continues to show encouraging results, but we will learn more about the likely pace of translation into profit once the seasonal back-to-school peak period has been completed in September.We are encouraged by the start to the new financial year from both businesses, and remain confident in the opportunities for future profitable growth.<b><u>Broker Talk</u></b>Edison Investment Research Limited: Edison issues outlook on Findel (FDL)08-06-2018 10:18Edison Investment Research Limited Edison Investment Research Limited: Edison issues outlook on Findel (FDL)08-Jun-2018 / 10:18 GMT/BST══════════════════════════════════════════════════════════════════════════London, UK, 8 June 2018Edison issues outlook on Findel (FDL) Findel (FDL) is seeing outstanding success with its online-led value retail strategy. FY18's 21% PBT growth includes a strong Black Friday and Christmas campaign. However, underlying independent market share growth puts FDL on the right side of a difficult sector. Also, considering that customer redress has been bottomed out, Education has been stabilised and that core net bank debt (excluding receivables-related debt) is close to net positive, most of the negatives in the investment case have been removed. FDL appears to have turned the corner and our revised valuation suggests significant valuation headroom.In our view, despite the recent share price rise, a FY19e P/E of 9.9x, does not yet fully recognise FDL's independent growth characteristics or the effective removal of the negatives in its investment case. Our revised valuation approach uses two metrics: a DCF projection to value on the longer-term income stream; and relative valuations to price growth among peer retailers. <b>The first values the shares at 401p, the second at 455p. We therefore define a blended valuation of 428p, implying an unstretched FY19e P/E of 15.5x and EV/EBITDA of 8.5x.</b><img src="[link]
II Editor
29 Nov 2017
NEW ARTICLE: Why Findel’s up a third and could go higher "LSE:FDL:Findel has existed in various guises since 1962, but rarely will this veteran of the stockmarket have enjoyed such a spectacular share price rally as today.A 30% jump to five-month highs for the home shopping and education supplies ..."[link]
Lspoon1
27 Jun 2017
Surely someone else has to go...... In early 2013, I wrote several posts asking for someone to explain why Findel was a good investment for the long-term. One of my concerns at that time was the consistent and high level of exceptional costs. In reality these looked and smelt like trading costs but the group treated them as ‘exceptional’ which meant it did not have to restate its profits in previous years. Obviously it did not want to do this as lower profits means lower share price. Roll forward four years and we have yet another huge loss after a further £88m of exceptional items. Again many of these ‘exceptional’ costs smell and look like trading costs. For example there is another £35.2m in bad debt costs, in other words customers who are not going to pay. The sales from these customers would have pushed up profits in earlier years by £35.2m. However, the Board and auditors have come up with a ‘cunning plan’ which is that the information needed to work out how this would be spread back in time is not available so it will just have to taken in one ‘exceptional’ hit in 2017. That’s handy as otherwise profits for 2012 to 2017 would all have been reduced by £7m per annum. Interesting to see the 2015 accounts where the Board pats itself on the back for managing customer debt much better and as a result customers not paying fell from 10.2% to 8.1%..........it now looks like that maybe was not the case!!So what does all this mean, first things first Kowalski has gone which we have to assume is the result of a consistent inability to get the numbers right. Exceptional items on things like disposals are fine but in the last 12 months alone we have seen £14.7m written off for PPI and £35.2m written off customer accounts. Most banks made their major provisions for PPI nearly 10 years ago yet still no-one at Findel wondered if they had a problem until late 2016!!!The new £35.2m write-off is even more outrageous as the Board insists this is ‘non-cash’!! In simple terms the Board is saying that customers who bought £35.2m of goods from the Company are no longer going to pay. If they had paid this would have been in cash………that is how a customer pays!!! I agree customers on credit can take several years to pay but the point is that when they do pay it is cash which comes into the Group. This is a ‘cash’ item.Secondly it strikes me as very dubious that new information has only just come to light this year which means the Board has no way of knowing over which years the £35.2m should be spread. How convenient!!! This way the auditors get to keep their position and the Group’s profits are not restated which could halve the share price. As a result, Kowalski is the fall guy and the rest of the Board remain in situ. I see why Kowalski has to go as he’s been there 7 years and this happened on his watch but what about the rest of the Board.How on earth has Tracey kept his job. He presided over the Audit Committee for many years and has done so again this year. Also, how are KPMG still in situ. Let’s look at the results he / they have presided over in the last few years:Since 2012, the group has reported PBT (before exceptional items) which totals £120.4m and it has paid tax of £6.7m. This means it should have generated £113.7m in cash from operations. On top of this it has also sold Healthcare, Kleeneze and Kitbag which generated proceeds of £39.3m. Add these two together and net debt should have fallen by over £150m.Let’s have a look at what has really happened………Opening total debt in 2012 was £230.7m - in 2017 it is now £225m a fall of just £5.7m.Question - Why has the debt hardly reduced when the Group has made so much profit……..Answer – The profits are not real as the Board uses ‘exceptional charges’ to boost what it describes as ‘underlying’ profits. In my mind exceptional means something which does not normally happen. Annual exceptional charges from 2012 to 2017 have been: £22.2m, £8.9m, £16.2m, £46m, £26.4m and £76m
Katonga
20 Jan 2017
To days rise Large rise onsmall volume.Who knows what ? -it seems someone does
Katonga
24 Aug 2016
Steady rise Reason?
Simbrad
22 Jun 2016
Edison's view, published yesterday on research tree.. "Several valuation metrics and our sum-of-the-parts analysis suggest that the market undervalues Findel’s potential. To close the valuation gap, management simply needs to continue on its current path. The increasingly online retailer Express Gifts has resumed growth. Turning around Education will take time in a difficult market, but existing initiatives should see FY18e profits leap. Meanwhile, core net debt remains well controlled and is set to reduce further."
halfhour
21 Apr 2016
Disposal of Enfield site Findel have now put their Enfield warehouse on the market - hopefully the overheads should be reduced soon.
BoyBlunder1
11 Apr 2016
Big Boys Reduce..... It appears the big boys are reducing their holdings.Emm, wonder why that is then......BB1
Katonga
24 Mar 2016
What a swing on one day Massive trades at end of day.Should see announcement soon, surely.Someone must know something
Katonga
30 Jan 2016
Yesterdays prices There appeared to be a big drop during the day on Friday, which was wiped out by end of the day, on minimal levels of trading.I wonder why?
fishxx
16 Oct 2015
Re: shorty hi m8 been long time i been reading your posts... whats your thoughts on the present situation ..... fish ....i think this is set to climb back to £2:90 ish !!! i feel that the uk is getting back to the feel good factor. buying a house on the up at moment means you need a lot of other thing to put in it ... bring on findel .... or am i wrong shorty . what do others think , want to get this board back talking .... fish
1gw_ii
29 Sep 2015
What next? I'm mainly over at advfn, but not much discussion there. Slightly more at LSE, but in general Findel seems to have been more or less abandoned by the bulletin board investors.I bought in on 8th September on the basis of a sound-looking underlying business (Express Gifts), write-downs and exceptionals largely out of the way (I hoped) and Toscafund going back up to 29%. I thought if Toscafund wanted to do something they would really just have to get Schroders on board first.I bought more yesterday on the basis of the 2 big 8m share deals going through on Friday afternoon. Good timing for once.One of the 8m share deals seems to have been Schroders to Sports Direct. Not clear yet where the other 8m shares came from.It looks to me as though Sports Direct may have bought in to try to frustrate the sale of Kitbag to whoever the board have agreed the subject-to-contract sale with.If Sports Direct want to take the company outright then with 18%, getting Toscafund on board should make it relatively straightforward. Or did Sports Direct get 8% from Toscafund's interest? Either way, Sports Direct + Toscafund would be a powerful alliance and if Sports Direct just wants Kitbag, Toscafund may have ideas for the rest of the business. Alternatively if the provisional buyer of Kitbag is not Sports Direct, then whoever it is may also want to approach Toscafund with the idea of launching a bid for the whole company.I think I'll hold for a bit - things might get (more) exciting.My opinions only, please do your own research.
shorty3
29 Sep 2015
Re: maybe the reasone for the sustained drop was due to the mm' s wanting all those millions of shares and plunging the price to get you too SELL , to fill the order . But they would not do that would they..... yer right ...and next it will be the classic pump and dump to get more privet investers to sell !!!!! or am i being to cynical..... if anybody reads this coments would be good .FishxxI think the last 2 RNS give you your answer!Shorty
fishxx
25 Sep 2015
maybe the reasone for the sustained drop was due to the mm' s wanting all those millions of shares and plunging the price to get you too SELL , to fill the order . But they would not do that would they..... yer right ...and next it will be the classic pump and dump to get more privet investers to sell !!!!! or am i being to cynical..... if anybody reads this coments would be good .
fishxx
25 Sep 2015
hi all . BUT im not sure anybody comes to look anymore. But after todays buys, there may be a few more visitors. sombody must have been tiped of about somthing ????????
