Innsightful
11 Nov 2016
Re: Director Change A surprise to see Mark gone and replaced by Liam who has extensive experience in the Retail sector for Michael Page and not too slow in updating his linkedin profile. Interesting development and may be the lead up to a change of direction.
BOWOOD
11 Nov 2016
Director Change Mark Darby has been at KLN for more than ten years and became a Board member last year.Why such a departure? Perhaps he knows something now that we will find out later. Not good but I could be wrong. Any thoughts B?
BOWOOD
28 Oct 2016
Ward Interesting - Ward and PB have slept in the same bed before and I would suspect they will try and reverse common business interests into KLN. My one concern is that RK may not wish to be part of it and move on. We will have to see how the next few months unfolds.
broomfielder
28 Oct 2016
Re: Share Transaction volumes Yesterday's share volumes at least in part due to Richard Ward's purchase. However, his purchase was of 12,392,029 on 27 October when disclosed volume activity was nowhere near that level.His holding is 3.65% which according to the RNS was achieved yesterday in one bite......? Now someone's arithmetic doesn't add up.Anyway, I'm not sure if this could signal a change in direction for the Group.B
broomfielder
27 Oct 2016
Share Transaction volumes After yesterday's RNS which arguably raised more questions than answers, is the equally perplexing sight today of shareshare being transacted totalling close to 1m which of course is considerably more than we normally witness in a month.It suggests that rather more is going on behind the scenes than we (PI's) are aware of which we would hope is the case given the continued losses being incurred despite many restructures and reorganisations.Perhaps we will hear one day - just don't hold your breath.B
broomfielder
26 Oct 2016
Re: Financing Arguably the refinance of the expensive Medium Term Loan Notes (with lower cost debt) makes sense but given the source of that funding and it's replacement largely from the same Principal (albeit using a different lending vehicle), it will not alter the external views of the Group.It remains under the control and full influence of PB and that is the issue. It's now almost as well being a SubCo of BMN Commercial as far as external investors are concerned I suspect.The drawdown of the Barclays Invoice Discounting facility is all very well as its the cheapest but these facilities are usually only for working capital purposes and are generally regarded as self funding. It's use to repay medium term debt is surprising but the introduction of a Revolver from who else but BMN suggests the Barclays facilities are now fully drawn.What all this does is simply emphasise the reliance on PB and of course we don't know the detail of the new loans which could well have enhanced terms (other than Interest) beyond those in the partially redeemed Loan Notes.Let's hope a further RNS will follow shortly outlining not only an update on current trading but an outline of the Group's plans otherwise we may have to assume that the headroom available in the new Revolver may shortly be used to fund further losses.As we have commented before, we really need to understand where the Group are headed and how it's going to get there. B
BOWOOD
26 Oct 2016
Re: Financing Yes we have struggled to make profits for years and have spent time and money on saving on costs rather than promoting and investing in growth in earnings. We really need to scale the business but keep the overhead cost the same. I feel sure the back office can accommodate a lot more gross earnings.
Innsightful
26 Oct 2016
Re: Financing What a mess!! The main principle is they can't make a profit, even in a very buoyant market.What a shame..
BOWOOD
26 Oct 2016
Financing It still looks a bit of a mess to me - any thoughts?
BOWOOD
24 Sep 2016
Re: Peer Grouping NBB are due to report half year on 30th Sept and I hope they will give us a positive update on the way forward following the recent placing. There will of course be a loss for the six months and I suspect further losses in the second half when the additional costs are absorbed. However I am expecting or almost demanding that they can project sustainable profits month by month from 1 Jan 2017. KLN will I fear trade badly in their second half and may decide to kitchen sink a bit to get their units profitable.
broomfielder
23 Sep 2016
Re: Peer Grouping Fair point B. Without a doubt, Kln's major shareholder -v- amount of shares in free float etc is and will continue to be an issue for the Market. In better times it might be tolerated but the influence exerted when times are tougher simply puts investors off IMO.I feel Kln is now running short of time and despite the continuing restructures looks strangely lacking in direction. The last thing we want to hear are further excuses be they Brexit or whatever when the next results are announced.The above factors, having now thought about it, probably explain the anaemic appeal the Group's shares currently have resulting in the depressed M Capital figs.Interestingly, the differences now beginning to emerge when we look to NBB by way of comparison are significant. The biggest in my view is the acceptance by NBB's major shareholders (J Moulton) that Plan A hasn't worked so let's 'trade' a part of our holding and incentivise a serious player in the Sector to essentialy effectively take over the running of the business in return for a share of any potential upside ie acceptance of reality....And that just could be a lesson for KLN and it's major shareholders.B
BOWOOD
23 Sep 2016
Re: Peer Grouping I agree that both are struggling and neither has benefited from the post economic recession recovery perhaps for different reasons. KLN has struggled with financial constraints but has worked hard to bring its overhead base down and NBB has raised capital on five occasions from 65p down and only now has a sence of direction. I feel NBB now needs to justify its rating by performing and KLN has to deal with its major shareholder who is not a Director and the problem that may be creating with the city. Both IMO has 12/18 months to get their house into an acceptable order. I'm in for the long term but the market can be unforgiving for a long time.
broomfielder
22 Sep 2016
Peer Grouping Hardly a 'grouping', I would concede but using a comparison for arguments sake with Norman Broadbent Ltd, do we really have KLN with a reported Annual Revenues broadly 3 x that of NBB, and NTA's again broadly 3 x that of NBB, yet it's Mkt Capital is less than half that of NBB.Now I appreciate the rather significant factor of profitability isn't included above but both are struggling to gain and maintain traction on this issue, so they perhaps are not miles apart (at least on historic data).So the Market certainly has a bit of a downer on KLN or maybe NBB is simply overvalued at £5m M Capital?B
BOWOOD
21 Sep 2016
Sale A small sale of 50k at about 0.65p could see the next sale push the sp down nearer the 0.50p level and a m/c of about £1.7m. Perhaps a fair value for a potential loss maker in a sector that is very challenging.
BOWOOD
17 Sep 2016
Re: Interims When shares are marked down on small trades that in itself sends a message notwithstanding limited liquidity. Corporate activity is I feel a must for KLN sooner rather than later as I feel the results for the current year could be dire. The CFO has done a great job in stableising the business but others should now take it to the next level.
