Originally Posted by
Rocky145
I would have been more impressed if the new factory was operational, yes Percy it was big and lots of expensive stainless steel, electrics and plumbing etc. But still along way from making product/money. And yes good open discussion, but unfortunately didn’t fill me with any more confidence.
Disappointing period the last couple of years has been, they have lost their way with this development at Rolleston.I’m not against the growth, they just have not managed the growth well or in a sustainable manner.
I would guess the past 6-12months they have been heavily constrained by lack of working capital / cashflow. They have been bridging the property sale for most of that period. This would have impacted work at Rolleston and maybe production as well.
They purchased 2ha at Rolleston, “Price was to good” - but really half that would have been enough.
They have started building the second building at Rolleston, yet the first is not operational, “we do not have a set plan for the second building - fluid” . All during high and uncertain building costs.
Selling of the first building is the correct measure to help the balance sheet, but this has been delayed and they were “surprised by council request for development contribution”
The next couple of years are going to be make or break really, continued organic growth will require more skill than they have demonstrated over the past couple of years. 2023 off to a bad start. Probably I would like to see a capital raise reduce debt and get both the Rolleston buildings completed, and see where it takes us, if that demand is really there.
The brand - been well discussed, but was hopeful when that was launched a few years ago But…..
Like most shareholders, my shares will be in the bottom draw for a while.