Finsbury Foods PLC (FIF)
Posted: September 26th, 2020, 9:10 am
I bought a few more of these the other day as I think they are an interesting opportunity that will prove to be cheap in a couple of years time.
The final results were out the other day and they show a resilient performance in the face of the lockdown.
https://www.investegate.co.uk/finsbury- ... 00075528Z/
At the current price the market capital is around £74m and profit before exceptionals came in at over £10m giving adjusted eps of 7.9p against a current offer of around 57p a share. The balance sheet is not too bad but net debt at £25m is a bit higher than I would like normally although this was down from £35m last year. Cash flow was excellent, helped by the suspension of all discretionary capex and the dividend. There was a substantial write down of goodwill and a bit more for fixed assets which caused the marginal profit overall.
The Foodservice business which was practically shut overnight due to the lockdown is now returning to better trading. This is 20% of turnover and the rest of the business performed quite well through lockdown.
After the results there was substantial buying by the wives of a couple of Direrctors and I think it is worth following suit and getting a few. They are also hopeful of reinstating the dividend next year and I think there is a good chance of this happening.
If they return to a 3.5p payout this would leave them yielding over 5%.
https://www.investegate.co.uk/finsbury- ... 00106466Z/
Thoughts and comments welcome.
The final results were out the other day and they show a resilient performance in the face of the lockdown.
https://www.investegate.co.uk/finsbury- ... 00075528Z/
At the current price the market capital is around £74m and profit before exceptionals came in at over £10m giving adjusted eps of 7.9p against a current offer of around 57p a share. The balance sheet is not too bad but net debt at £25m is a bit higher than I would like normally although this was down from £35m last year. Cash flow was excellent, helped by the suspension of all discretionary capex and the dividend. There was a substantial write down of goodwill and a bit more for fixed assets which caused the marginal profit overall.
The Foodservice business which was practically shut overnight due to the lockdown is now returning to better trading. This is 20% of turnover and the rest of the business performed quite well through lockdown.
After the results there was substantial buying by the wives of a couple of Direrctors and I think it is worth following suit and getting a few. They are also hopeful of reinstating the dividend next year and I think there is a good chance of this happening.
If they return to a 3.5p payout this would leave them yielding over 5%.
https://www.investegate.co.uk/finsbury- ... 00106466Z/
Thoughts and comments welcome.