Greencore

ranger4

Anyone share any info with investing with greencore group, Whats present debt level and outlook for company, also does greencore have opperations in ireland uk and us? and is company soley involved with food sector, thanks.

Mort5000

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Greencore

ranger4

Mort5000 wrote: »

Yahoo!

Google

ISE

Greencore

Interested in other exsisiting greencore shareholders views not just company news, cheers.

smallcapmac

hey ranger4, not a shareholder but i would be cautious about investing at the moment. I understand liam carroll owns about 30% of the company and with his current financial position and dealings with the court there is a serious risk that these shares will come to market in the short term. Until this overhang is sorted the stock price may be held back.

Otherwise greencore is a nice company that makes a lot of convenience food - tight margins business - but they seem to do it very well

ranger4

smallcapmac wrote: »

hey ranger4, not a shareholder but i would be cautious about investing at the moment. I understand liam carroll owns about 30% of the company and with his current financial position and dealings with the court there is a serious risk that these shares will come to market in the short term. Until this overhang is sorted the stock price may be held back.

Otherwise greencore is a nice company that makes a lot of convenience food - tight margins business - but they seem to do it very well

Thanks for info, Will be interesting to see what other companys he has invested in and if we see a big selloff.

jonnyj

Was a big jump today, they closed at 1.42. I knew I should have bought a few.

Raskolnikov

There are essentially three areas to look at with Greencore.

• Convenience Foods - This is the key area of focus for Greencore and encompasses a huge variety of products from cake, sandwiches, ready meals and bottled water. Some of products were bought at the top of the market a few years back and will probably never give a return of investment. Also, with a recession, the margins on everything (but especially "luxury" foods is going to be squeezed unmercifully.)
• Food Ingredients - Despite this division being profitable and stable, management have been (and look set to continue to be) exiting this market over the coming years. To me at least, it looks like management would rather take a gamble on growth in the convenience food division, rather than maintain consistant profits. Personally, I would expect the malt and edible oil operations to be sold off in the not too distant future.
• Property - Greencore own 900 acres of property in Mallow and Carlow that they're hoping to redevelop as residential. With the property crash here, I wouldn't be expecting any development to take place in the next ten years. They also own 123 acres in Littlehampton in England. Even though the crash in the UK will probably be less severe than Ireland, I would still be looking at a timeline of 5 years before they even consider redeveloping the site there. You have to remember, that in a property crash, development land tends to collapse by an even greater amount than the gaffs themselves.

Three things scare me about Greencore though.

€400 million of debe for a company of their size is huge.
They also have a defined pension deficit of €100 million.
As they're primarily export to the UK/USA, the strong Euro is crucifying them.

ranger4

Raskolnikov wrote: »

There are essentially three areas to look at with Greencore.

• Convenience Foods - This is the key area of focus for Greencore and encompasses a huge variety of products from cake, sandwiches, ready meals and bottled water. Some of products were bought at the top of the market a few years back and will probably never give a return of investment. Also, with a recession, the margins on everything (but especially "luxury" foods is going to be squeezed unmercifully.)
• Food Ingredients - Despite this division being profitable and stable, management have been (and look set to continue to be) exiting this market over the coming years. To me at least, it looks like management would rather take a gamble on growth in the convenience food division, rather than maintain consistant profits. Personally, I would expect the malt and edible oil operations to be sold off in the not too distant future.
• Property - Greencore own 900 acres of property in Mallow and Carlow that they're hoping to redevelop as residential. With the property crash here, I wouldn't be expecting any development to take place in the next ten years. They also own 123 acres in Littlehampton in England. Even though the crash in the UK will probably be less severe than Ireland, I would still be looking at a timeline of 5 years before they even consider redeveloping the site there. You have to remember, that in a property crash, development land tends to collapse by an even greater amount than the gaffs themselves.

Three things scare me about Greencore though.

€400 million of debe for a company of their size is huge.
They also have a defined pension deficit of €100 million.
As they're primarily export to the UK/USA, the strong Euro is crucifying them.

Some great food for thought there, thanks.