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Rofl.
Online will keep growing , and growing. Why on earth would you visit a shop to buy a fridge!
to the bulls-I suggest you re-read the statement from Monday. last sentence. You can't prioritise cash AND profit in this business. Either you sell stock at a big discount to bring in cash (which it appears is what theyre doing if you look at the website) or you focus on profit and margin.
the delay to the accounts signing was also clearly due to going concern status. more lies from Roberts
the "in-line" with expectations on Monday has become "materially in-line" today
presumably if it is line with April and they didn't raise capital then you have to wonder what's changed? hmm
£40m is not enough anyway. UK revenue in the peak year 3/2021 was £1.4bn. current trading is around -20% down on that we have been told. Trade payables at 30.9.21 were £331m. It doesn't take much of a swing in that number to suck up all the £40m
the real issue here as others have noted is the channel shift back to offline. AO does offer a good service but it doesnt offer the advice of Currys or John Lewis. Ceconomy is Europe's Currys, and their online division was -40% year on year in the quarter to March. Incredible really.
This £40m won't reassure the suppliers or the trade credit insurers who may have not been paying attention before Atradis acted
Lastly, don't forget the warranties issue hasn't been resolved. They accrue profits in advance of the cash from warranties arriving, in line with accounting standards. If the assumptions need to change though and people cancel more, this could wipe out a huge slug of the cumulative profitability of the business. Management always have refused to declare how much the profits are-and include it all in one segment. Given the comments on this Board from industry experts, and how many comments on Glassdoor are from warranty salespeople, it is likely it's basically all of profits on the sale of a delivered item
cheerio, hope this is helpful. happy to hear counter arguments. except for the one about online share growing further. we are at peak.
I honestly cannot tell where this is going to go hopefully not below 40p!
Like many others I almost bought more the other day following the RNS saying everything was fine. To me that just looks like a complete untruth and I don't know how the bod's can hold their heads up.
So will this go down more to 40p over the next few days?
Very small margin improvements here would see huge shift in profitability. Taken a few at 45p. Good value imo.
Correct.
It does seem to be that way at the moment, Shareholders are used as cash cows to rectify bad decisions from companies!
AJ Jones...never believe anything a company says... do your own research. If they raise money, they will do what all companies like AO world do, pee it up against the wall. Why would a company exec care - sure its only your money... and we can keep asking for more.
Oh definitely!
Yes, you and me both.
I also think we'll be fine but there's a lesson to be learnt about the credibility of RNSs on AIM.
Yep! Me included I am a bit annoyed to be honest as I did think that RNS showed they were financially sound! That is why I considerably increased my shares. I do think that it will still do well but I am a bit annoyed with them and how they've done this.
2 days ago AO informed the market that rebasing of supplier insurance cover had "no effect on its liquidity position". Believing that RNS, a number of investors, myself included, were sucked in and bought shares...
But 2 days later... it's a capital raise!
Gotta love AIM.