Those UK fund managers that have thrown nearly £200m at this business since it floated in 2013 should, quite frankly, hang their heads in shame. While their support of management’s strategy of acquiring under-performing assets from desperate sellers at over-inflated prices looks idiotic now, at least it had an element of credibility at one point, just. However, the award of excessive remuneration to the senior managers of Conviviality is unforgivable and lacks total common sense and business sense.
We struggle to understand how the principal shareholders agreed to lavish such riches on a management team that had delivered nothing in terms of ‘real’ returns over the last few years, but simply splashed out on acquisitions. As we pointed out in our Premium Research commentary from February 2017 ‘Is this wholesaler and retailer of beers, wines and spirits a classic value trap?’ the cracks were starting to show over a year ago, yet the Chief Executive was rewarded with nearly…
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