Small Cap Value Report (Fri 29 Sept 2022) - MCB, MADE, TPX
Good morning from Paul. What a chaotic week it's been, I'm so glad it's nearly over!Some cracking reader comments this week, I'm delighted to see the reader comments section coming alive with really interesting posts this week, thanks to everyone who is contributing constructively.
Agenda -
McBride (LON:MCB) - a key refinancing announcement with its banks was announced yesterday, that strikes me as remarkably lenient. That then allowed FY 6/2022 results to be announced, which come with a "material uncertainty" over going concern warning. It's loss-making, and very heavily indebted to both the banks, and trade creditors. Cashflow is poor. So this is really a question as to whether the business can survive. It says current trading is improving, after 18% price rises were pushed through in H2, to recoup "rampant" inflation on costs. Shares could have little to no value, so best seen as a high risk call option on a turnaround. Risk:reward strikes me as poor, but I'll keep an eye on it, for a possible future turnaround.
Made.Com (LON:MADE) - as mentioned here before, the facts amp; figures lead me to believe that MADE is likely to be insolvent soon. I've gone through the interim numbers,...