Is There Value In London Biscuits?

London Biscuits reported its earnings recently and according to the management, the performance was within expectations.

• The Group achieved a profit before income tax after minority interest of RM6.715 million on the back of RM56,922 million in turnover, as compared with the profit before income tax after minority interest of RM3.516 million and a turnover of RM46.656 million, respectively, reported in the preceding year corresponding quarter. The Group’s result is within management’s expectation.

London Biscuit was blogged several times before. See London Biscuits. Here's the updated numbers.

Looking decent but the issues mentioned before, still persist.

The balance sheet issue mentioned in the posting Review Of London Biscuit and Regarding London Biscuits Borrowings

• Yes, that's London Biscuit's balance sheet and seriously, from my flawed point of view, I really think it's awful!
  
  That's no way how one would grow a business. I know I wouldn't if the business was mine!

Here's the updated numbers. Look at the spike in debts and receivables. Cash increased due to bank overdrafts.

In regards to its 'investing activities' mentioned in the posting Review Of London Biscuit and I guess one should not forget how London Biscuit 'shot' itself in the foot via its investment in Lay Hong, London Biscuits Disposal Of Its Stake In Lay Hong


And in regards to the Property, Plant and Equipment (PPE) issue mentioned in the posting Regarding London Biscuits Again. In that posting, in my flawed opinion, I felt that 'the company is wheeling and dealing in PPE (Property, Plant and Equipment)!!!'

Well, London Biscuit now only reports a summarised cash flow statement in its quarterly earnings. So sadly, one has to wait for the annual report.