Bakkavor group - share monitoring

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HOLD / BUY / SELL Bakkavor Group

Hold
7
64%
Buy
3
27%
Sell
1
9%
 
Total votes: 11

garindan
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Re: Bakkavor group - share monitoring

Post by garindan » Tue Nov 17 2020 8:05pm

Beachboy wrote:
Tue Nov 17 2020 7:53pm
Any thoughts on our exit point(s)?
Yes, precisely. I have tried on a couple of occasions to try and get some discussion going about this but not any real traction.

In my view - we had been waiting to see the state of the company before reinvesting. The company seemed to have weathered the storm of Covid-19 relatively well all considered so we invested again. At that point it looked like 100p would be a good target price. I'm inclined to think that might be a little light and perhaps we should be looking at perhaps nearer 120p, but this depends on how Covid-19 impacts Christmas food demand. The fact the company is hiring staff rather than firing suggests they have confidence things are definitely going in the right direction.

When we bought our first batch of shares the company dropped in price by 15-20p. I didn't see the reason why then. I struggle to see why it would not get back to this pre-lockdown price of ~125p. It's food and they are targetting the affordable end of the scale not the Waitrose end. I think they are in the right market at the right time.
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Re: Bakkavor group - share monitoring

Post by AAAlphaThunder » Thu Jan 28 2021 10:36pm

BAKKAVOR GROUP PLC TRADING UPDATE
14/01/2021
A strong and resilient performance in unprecedented conditions

Bakkavor, the international provider of fresh prepared food (FPF), provides an update on trading for the 52 weeks ended 26 December 2020, ahead of its full-year results announcement on 16 March 2021.

At a Group level, the encouraging recovery in sales reported at the end of H1 continued into the second half, with Group revenue for the full year 4.9% lower than the prior year and 4.9% lower on a like-for-like basis.

In the UK, we were reassured by a recovery in sales as the first COVID-19 lockdown was lifted, however, volumes were adversely impacted in the final quarter by further restrictions, particularly within the ‘Food to go’ category. Forward planning and preparation for the all-important Christmas period enabled us to maintain very high customer service levels and deliver Christmas volumes in line with the prior year. Overall, UK like-for-like sales for the full year were 5.3% lower than last year.

Looking at our International segment, the US business grew by 12.7% on a like-for-like basis as we benefited from the growing trend for FPF and greater collaboration with our customers. This revenue uplift, together with a strategic restructuring of our operations, has led to a turnaround in performance and secured sustainable and profitable growth for the second half of the year.

The growth reported within the US was, however, offset by a decline in revenues of 21.6% in China; our business most severely impacted by the pandemic. Whilst we continued to see reduced demand in Hong Kong due to ongoing civil unrest, we saw a steady improvement in sales in mainland China in the second half of the year, giving us confidence in the overall recovery in the region.

Decisive mitigating actions were taken to lower our cost base and preserve cash at an early stage of the pandemic. We rapidly adapted factory operations and completed strategic restructurings in all regions to accommodate lower volumes. As a result, when combined with improved trading in H2, the Group believes it will deliver adjusted EBITDA (pre IFRS 16) for the full year broadly in line with the £138m reported in the prior year. Furthermore, we maintained our focus on cash management, which included a temporary reduction in non-essential capital expenditure and a suspension of dividend payments. We therefore continue to operate with significant headroom of £200m against our debt facilities of £537.5m.

Thorough planning ensured we were well-prepared ahead of the UK’s exit from the European Union on 31 December 2020. We worked closely with suppliers and customers to put in place processes to mitigate any adverse risk to supply, and we continue to support colleagues in obtaining UK settled status. Although it is early days, these measures have minimised disruption to our business and our supply chain continues to operate effectively.



Agust Gudmundsson, Chief Executive Officer, said:

“These are unprecedented times but the hard work and dedication of our teams, together with our scale and long-standing customer relationships, has delivered a strong and resilient performance. I am incredibly proud of our colleagues who have gone above and beyond in the toughest of circumstances. Their performance has been exceptional and I would like to thank them once again.

“Notwithstanding the ongoing impact of COVID-19, we have a sound business model and solid platform that leaves us well placed to navigate the current environment and achieve long-term sustainable growth.”
https://www.bakkavor.com/news/news/news ... fault.aspx
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garindan
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Re: Bakkavor group - share monitoring

Post by garindan » Fri Mar 12 2021 3:04pm

Just a heads-up. Bakkavor has been obtaining some decent rises in the past week. It is currently ~100p.

My gut feeling is to look for 120p on the second tranche of shares we bought last year. I think that is quite achievable and not too greedy. We can think what to do with the remaining shares we bought earlier but sitting on them for longer is probably the option to see if we could get all our money back and then perhaps review whether to sell then or invest elsewhere.

Thoughts welcome! :thumbup:
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Re: Bakkavor group - share monitoring

Post by hiswitzend » Fri Mar 12 2021 4:03pm

that makes total sense to me
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Re: Bakkavor group - share monitoring

Post by pieman » Sat Mar 13 2021 9:24am

:thumbup: Me too
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Beachboy
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Re: Bakkavor group - share monitoring

Post by Beachboy » Sat Mar 13 2021 9:27am

Me three 👍

garindan
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Re: Bakkavor group - share monitoring

Post by garindan » Mon Mar 15 2021 5:07pm

Moved on to 105p today. Fingers crossed this one continues rising to our target.
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garindan
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Re: Bakkavor group - share monitoring

Post by garindan » Fri Mar 19 2021 8:40am

More rises the past two days. Now sitting @110p early doors today (19/03/21).

I'm beginning to feel a little uncomfortable if we don't have a firm plan in place for when to sell the share. I've raised the idea of 120p being the sale point, which three have suggested they would support, and we creep closer to this. I'd like to ensure we don't miss out selling if it reached this point - if only for a few minutes and a sale could be made. We'd still have our original holding left if it did sell.

I'm going to start a poll to see if members would be supportive in locking in a 120p sale point, so we can see what everyone thinks.
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garindan
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Re: Bakkavor group - share monitoring

Post by garindan » Tue Apr 20 2021 2:20pm

Bakkavor has announced 4p per share suspended final dividend of 2019 will now be paid, as long as the motion is passed at the AGM in May, for all shareholders on the register as of 30 April 2021.

So it seems sitting on the share at least until then will probably be wise.
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Re: Bakkavor group - share monitoring

Post by Prawn_Lover » Wed Apr 21 2021 12:43am

I sometimes pop into this forum to see what's going on but when I saw the above I could not help but leave a comment as I recall visiting before and remember a thread where Mr Garindan was challenged for selling a share days before it went ex-dividend and therefore lost the payment of the dividend - his reply was that the market took payments into consideration but now his tune seems to have changed; or have I missed something? Perhaps he's finally coming around to the correct way of thinking - I do hope its not too late for you all as Bakkavor seems to have done nothing but rise since you recently sold part of your holding - oh - and that dividend would also have been paid on them if you had continued to hold them. I found it difficult to understand why you held onto them all the way though the lockdowns and then sold them before the benefits of all that time & pain are paid out - again, am I missing something?
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