Conviviality Retail has recently floated on the Aim. They are one of the larger off-license franchise businesses and are featured in Shares this week. They are mainly covering the north west of England with 600+ outlets selling beers @15% below prices charged by supermarkets. Their plan is to expand into southern England and develop their wine business led by a former executive who worked for Waitrose and Sainsbury (watch out Majestic), Cheers!

this had a write-up in the most recent shares mag - a somewhat questionable accolade it must be admitted

however, i like the stable of brand names, particularly matthew clark and now cru (formerly bibendum), from whom i buy much of my better and more interesting wines

the yield is also good at 4.1% and with decent cover

it's neither the most lively nor the most heavily traded of stocks, but perhaps worth considering for a longer term hold

Stockwatch: Exploit this 6.6% yield

Very surprised this company has not had more comments in the past couple of years.

This one is a blast from the past popular in the north west, moved to Aberdeen in 2001 and looking at the store map (Bargain Booze only one store in Aberdeen, Dundee and Edinburgh) been off my radar.

Looking at five year chart above, apart from 2014 does well leading up to Xmas.

Trading update 7th November. Interim results 29th January. Had a great 2017, on watch list, close to another break higher.

Intra-Day breakout, can it hold to close?

Nice rise today, been adding on the spreads, hopefully volume will gather pace leading up to trading update on 7th November.

With several Dirs buying in Feb 2018 and sp drifting down since last Oct posts . . . . I wonder what's created any new belief in this co?
It's an expensive share IMHO, if it's still on AIM.

Anyone?

What a drop!
It looks to have fallen off a cliff. Given as a buy in this weeks' I C . Still, another 15 point drop on Friday.

Surely overdone on the selling here.

Bargain Booze owner Conviviality dries up as it's accused of calling time on its customers before recent profit warning
By Neil Craven for The Mail on Sunday
Published: 22:03, 10 March 2018 | Updated: 22:03, 10 March 2018

Drinks supplier Conviviality has been accused of calling time on its customers well before last week’s profit warning.
The closures began last summer, raising speculation that Conviviality has been struggling to meet targets for some time.
Thursday’s shock profit warning wiped nearly two thirds off the firm’s share price.


hursday’s shock profit warning wiped nearly two thirds off the firm’s share price
Conviviality turns over £1.6billion a year supplying bars and restaurants, as well as running its own Bargain Booze off-licence chain.

The firm released a favourable report in January, but this week blamed ‘a material error’ in forecasts, adding that profit margins had ‘softened’.

Yet suppliers noted a spike in the number of Winding Up orders issued by one of Conviviality’s wholesale arms, Matthew Clark, in the second half of last year. Such court orders force struggling firms into administration to allow creditors to collect debts.
One supplier said: ‘The collapse in restaurant bookings has been worsening since well before Christmas so why would the board take until now to realise it?’

Bargain Booze owner Conviviality has revealed that it owes the tax authorities £30m.

The troubled group, which saw its shares collapse last week following a profit warning, said it has "identified a payment due to HM Revenue & Customs" falling due on 29 March that has not been accounted for within its short-term projections.

Conviviality said the discovery has "created a short-term funding requirement" and resulted in operational difficulties that could negatively impact profits.

Shares in the firm were suspended ahead of the announcement.


How do you forget a £30m tax bill

Shares suspended What happens next? Surely a fiasco of the first order. From rags to riches and then back to rags !

Comment from Shore Capital:
"Another day, another update from Conviviality and once again the statement does not make for pleasant reading. The shares were suspended this morning pending an announcement so we wondered if there had been another discovery to impact profitability or whether there was bid interest that might have been leaked ahead of the market opening. We were not expecting the company to state it had found a c£30m payment due to the HMRC on 29 March 2018. This was also in the period since the statement issued yesterday at just after 1pm. This raises all sorts of questions and has caused a short-term funding issue with accountants PwC now engaged to help find a solution. Sadly it is also another huge dent in management credibility. Looking ahead, we now expect the company to be trapped in a vicious cycle that starves the business of much needed cash and we are increasingly doubtful equity holders will be left with any value. With limited visibility and confidence in our financial expectations, we withdraw our forecasts and put our Hold recommendation under review.
We are surprised the company has retained its net debt guidance for FY2018F of c£150m given the HMRC payment due before the year end and potential for profitability to be lower than expected. The guidance seems to presume that the payment to HMRC was either included in full year budgets but not in short-term cash flow projections or is paid post year end with profitably remaining in the right ball park.
Our concern now is that the business could be trapped in a vicious cash cycle. We expect cash availability to be put under further pressure from the level of cash available from the receivables facility as the banks manage their risk exposure. Suppliers potentially are also likely to be managing their receivables risk via supply on tighter commercials terms and/or lower order sizes. The recent inclement weather conditions may also have resulted in higher levels of stock in the supply chain too, therefore, potentially having an adverse impact on future short-term sales."

One word, incredible !

Conviviality said it was exploring the possibility of an equity fundraise to recapitalise its business amid a recent profit warning after discovering a £30m unexpected tax bill.

The firm also said that customers and suppliers "remain supportive" as it continues to work through its funding requirements.

'The company has engaged with HM Revenues and Customs regarding the £30.0m payment due on the 29 March 2018. HMRC has been receptive to our needs and these discussions continue,' the firm said in statement.

Conviviality said it was exploring the possibility of an equity fundraise to recapitalise its business amid a recent profit warning after discovering a £30m unexpected tax bill.

The firm also said that customers and suppliers "remain supportive" as it continues to work through its funding requirements.

'The company has engaged with HM Revenues and Customs regarding the £30.0m payment due on the 29 March 2018. HMRC has been receptive to our needs and these discussions continue,' the firm said in statement.

Doesn't look too good. Perhaps the various recent acquisitions by them have been a step too far

Customers and suppliers "remain supportive"

or.........

I hope that rabbit gets out of the way !