Good morning!

Further to Friday's report on Chapel Down (OFEX:CDGP) I tracked down my nearest stockist (Waitrose), and we had a family Scrabble and English wine tasting evening last night. The overall verdict (FWIW) was that we thought the Flint & Bacchus white wines were pleasant, but not something we'd go out of our way to buy. Not a bargain at £10 per bottle either. Although the 33% shareholder discount (if you prove ownership of 2,000+ shares) would bring it down to a more acceptable price.

However, the Chapel Down champagne was delicious, and to my unsophisticated taste seemed just as good as most mainstream French champagnes. So a very real contender, at £20 per bottle.

We also sampled the Chapel Down beer, Curious Brew, which was excellent, I thought.

Part of the problem seems to be that they are hidden in the "Rest of World" section of Waitrose, with no prominence, and very little stock on display. So I would say Chapel Down's main challenge is to promote its wines better, and persuade retailers to display them more prominently & with greater shelf space allocation.

Anyway, on to today, and I see at least 3 bad situations, looking at the top fallers table.


ST Ives (LON:SIV)

Share price: 124p (down 45% today)
No. shares: 142.1m shares
Market cap: £176.2m

Trading update (profit warning) - the share price is down a brutal 45% today, so that immediately indicates that this is a serious profit warning. A regular profit warning usually sees a share price down 30%, and a mild profit warning is more like 10% down.

The company describes its activities as marketing services, which seem to be based mainly around print. So mailshots, and similar things, I imagine.

The group has a 31 Jul 2016 year end. For the first 8 months of this year, things seem to have gone alright:

Trading overall in the eight months ended 1 April 2016 has continued to be broadly in line with management expectations, with Group revenue running approximately 5% ahead of the equivalent period last year.  

Unfortunately though, storm clouds are gathering:

However, the outlook for the final quarter, and for the following financial year, has deteriorated.
...as noted within our half-year results, the current global economic uncertainty is leading to greater caution in the allocation of marketing budgets. Recently, and within the digital segment…

Unlock the rest of this Article in 15 seconds

or Unlock with your email