SML - Synlait

[Ferg]

their balance sheet looks highly stressed.

[snip]

As for people paying 91.5 cents on the dollar for their unsecured December 2024 bonds.  I not sure some investors have a proper handle on the risks of default here.

Agreed and agreed.  I too am staggered at the stressed Balance Sheet.

I had half an eye on the bonds but thought I should at least look at the Balance Sheet first....*backs away slowly*....

[winner (n)]

Trading halt

Giving punters time to work out how much the NEW CUSTOMER is worth ......and share price rockets over 3 bucks


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/410243/392965.pdf

[Minimoke]

Oh dear. What is this "New information" synlait has to digest while it has its shares placed in a trading halt. I don t think it can be positive. No announcement from A2M so can't involve then. Has the  new international customer pulled the plug?

[Minimoke]

Trading halt

Giving punters time to work out how much the NEW CUSTOMER is worth ......and share price rockets over 3 bucks


http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SML/410243/392965.pdf

Or bank coventants have been breeched and they have had enough.

I see market cap is now down to $468m. A2M own approx 20% and they have enough cash on hand to buy out right at bargain basement prices.

[winner (n)]

Getting a new Director of People and Culture though

[winner (n)]

Something to do with those Chinese accreditations?

[Minimoke]

Getting a new Director of People and Culture though

Ex Fonterror. Hope she has done her due diligence.

[Minimoke]

Something to do with those Chinese accreditations?

That would impact A2M and no announcement from them (yet)

[Hectorplains]

Getting a new Director of People and Culture though
[/quote

Or bank coventants have been breeched and they have had enough.

I see market cap is now down to $468m. A2M own approx 20% and they have enough cash on hand to buy out right at bargain basement prices.

Getting a new Director of People and Culture though

Hmmm just in time to sort the redundancies...

[Minimoke]

Less than a month ago Synlait said "Synlait continues to manage several risks, including, but not limited to, the SAMR re-registration timeline and supporting activities, the onboarding timeline for Synlait Pokeno's new multinational, UHT volume ramp up, a tight labour market, and high inflationary cost pressures. These factors could impact Synlait's current guidance.

Synlait will look to provide a further update on its performance and outlook on 8 May 2023 at its Investor Day.

So seems to me one of these things has turned to custard.

I had hoped they had learnt from their disastrous Talbot Cheese purchase the importance of making sure factory productions standards were met. Maybe not. So perhaps its the SAMR process in trouble

Over the past few years they have been very quiet on the new "multinational". And "onboarding always seemed to be something in the future. That's they identified this as a risk a month ago was a surprise - their should have been no risk as thy have had years to get things set up.

UHT Volume ramp up. A bit of a slow down here wouldn't have had, I would think a material impact.

Tight labour market - my observation is it seems to be easing a bit.

High inflationary cost pressure - will inflation announced yesterday was much lower than expected.

So we are left with SAMR, Multinational or banks.

[Hectorplains]

Less than a month ago Synlait said "Synlait continues to manage several risks, including, but not limited to, the
SAMR re-registration timeline and supporting activities, the onboarding
timeline for Synlait Pokeno's new multinational, UHT volume ramp up, a tight
labour market, and high inflationary cost pressures. These factors could
impact Synlait's current guidance.

Synlait will look to provide a further update on its performance and outlook on 8 May 2023 at its Investor Day.

So seems to me one of these things has turned to custard.

I had hoped they had learnt from their disastrous Talbot Cheese purchase the importance of making sure factory productions standards were met. Maybe not. So perhaps its the SAMR process in trouble

Over the past few years they have been very quiet on the new "multinational". And "onboarding always seemed to be something in the future. That's they identified this as a risk a month ago was a surprise - their should have been no risk as thy have had years to get things set up.

UHT Volume ramp up. A bit of a slow down here wouldn't have had, I would think a material impact.

Tight labour market - my observation is it seems to be easing a bit.

High inflationary cost pressure - will inflation announced yesterday was much lower than expected.

So we are left with SAMR, Multinational or banks.

You have negated the possibility that they have found a new and novel way to lose a lot of money. 

[Minimoke]

Lets look at staff turnover in past year
- 13 June 2022 Director, Legal, Risk and Governance, Deborah Marris
- 12 December Director of People & Culture Boyd Williams resigns
- 23 March 2023 Director of Operations Nigel Macdonald resign

[Minimoke]

You have negated the possibility that they have found a new and novel way to lose a lot of money. 

I give them credit for taking some time to decide how best to loose money - so I think this would have been flagged in the last guidance.

[Basil]

You have negated the possibility that they have found a new and novel way to lose a lot of money. 

LOL Post of the day...change all the signage and paint all the stainless steel a deeper shade of pink, that'll fix everything 

[Minimoke]

While we await an update, lets remind ourselves of their debt situation

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