Aramalap2 is right on the money with his/her comments. Read the comments that 95% of customers are going to other outlets in the same petrol stations that sit alongside Oilvers. Doesn't that tell you something? That means 95% of people don't want healthy food if Aramalap2 comments are correct, which I personally think they are.
Look in my opinion this is a fledging business that was hastily put together to list on the ASX with approximately $3 million from so called sophisticated investors to pay for the IPO and then $15 million was offered to the Public. Mum & Dad investors are usually offered these by brokers who get a tranche to sell to their customers,
With Olivers announcing two company downgrades of profit within months of listing and the originator of the concept going in what I would describe as unusual circumstances I feel a little bewildered. The announcement by the company that Jason Gunn had resigned was to say least unusual and puzzling particularly with no further Director responsibility or employment, don't you think that's odd? Usually they thank the person like Jason for his 12 years of input and wish him all the best but none of that was said. Why?
I am concerned that Olivers said in one of their announcements they had approximately $5 million dollars in cash left at the end of March 18 and their next 3 months expenditure on opening new stores was going to be approximately $10 million dollars for April, May & June 18. So what about all their other expenses for running the business, wages etc. etc., they are not making a profit so where is this going??
I can only think that Oli will be with out any lollie and if that happens what will they do next? Would shareholders support a cash issue??
To sum up I think the business is a dud from day one and heading into July onwards with all their end of year costs and annual reports a nightmare may begin.
Add to My Watchlist
What is My Watchlist?
