Thanks for the idea. I noticed the below from their annual report "Given the ongoing financial challenges faced by the Group, it became evident that raising sufficient additional share capital from our sponsors or shareholders alone would be insufficient to restore Walker Crips Group to a stable financial footing. We have secured a £5 million loan facility from one of our major shareholders to provide the necessary funding to support our future plans and reinforce the Group’s financial stability. The availability of this loan facility is instrumental; without it, the Group would lack the capacity to implement essential changes and invest in the growth strategies required to move our business forward."
Why do they need this 5m Loan facility while they have ~13m unencumbered cash?
Because £11m of that money has to remain unencumbered for regulatory reasons. They have to basically keep it liquid and available. So they can't spend it on operational activities.
However, the £11m would be available in the event of a liquidation, because they would cease to be a regulated business. So I still count it as a solid margin of safety.
I'm also pretty sure that the 'deal' is sweet for the shareholder. I believe the terms include a chunky interest rate etc...
I’ve recently become a paid subscriber and would appreciate some clarity regarding stock recommendations. If I choose to buy a stock based on your guidance, will you provide updates on when to exit the position, or is it my responsibility to monitor and manage it independently? While I am new to stock trading, I do have experience in the Forex market and have been following Forex Source (now Financial Source) since 2020.
Given my background, I’d appreciate your guidance on how best to stay informed after entering a trade and whether updates will be provided as part of the service.
Hi there, and welcome. Yes, I will post updates for all the stock recommendations. For example, if I exit one of the stocks for any reason, I'll publish an article-explainer. You'll always know if I've exited any of the stocks. If you don't hear anything, it simply means I'm still holding that stock in my portfolio :) You'll receive all notifications via email.
Thanks for the idea. I noticed the below from their annual report "Given the ongoing financial challenges faced by the Group, it became evident that raising sufficient additional share capital from our sponsors or shareholders alone would be insufficient to restore Walker Crips Group to a stable financial footing. We have secured a £5 million loan facility from one of our major shareholders to provide the necessary funding to support our future plans and reinforce the Group’s financial stability. The availability of this loan facility is instrumental; without it, the Group would lack the capacity to implement essential changes and invest in the growth strategies required to move our business forward."
Why do they need this 5m Loan facility while they have ~13m unencumbered cash?
Thanks.
Because £11m of that money has to remain unencumbered for regulatory reasons. They have to basically keep it liquid and available. So they can't spend it on operational activities.
However, the £11m would be available in the event of a liquidation, because they would cease to be a regulated business. So I still count it as a solid margin of safety.
I'm also pretty sure that the 'deal' is sweet for the shareholder. I believe the terms include a chunky interest rate etc...
Hello,
I’ve recently become a paid subscriber and would appreciate some clarity regarding stock recommendations. If I choose to buy a stock based on your guidance, will you provide updates on when to exit the position, or is it my responsibility to monitor and manage it independently? While I am new to stock trading, I do have experience in the Forex market and have been following Forex Source (now Financial Source) since 2020.
Given my background, I’d appreciate your guidance on how best to stay informed after entering a trade and whether updates will be provided as part of the service.
Thank you.
Hi there, and welcome. Yes, I will post updates for all the stock recommendations. For example, if I exit one of the stocks for any reason, I'll publish an article-explainer. You'll always know if I've exited any of the stocks. If you don't hear anything, it simply means I'm still holding that stock in my portfolio :) You'll receive all notifications via email.