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Dont forget boys and girls...
All air travel getting back to normal levels in the coming weeks.... Headwinds are soon to become tail winds....
Just for reference in case anyone is interested....
Boo are smashing the market up and beating the competition....
Take a look below
Just taking a look at BOO vs ASOS.... the rate at which BOO is taking market share is phenomenal....
Take a look at the revenue growth for BOO...
2012 - 67 million
2013 - 109 million
2014 - 139 million
2015 - 195 million
2016 - 294 million
2017 - 579 million
2018 - 856 million
2019 - 1.2 billion
2020 - 1.75 billion
2021 - 1st half revenue 975 million ( I can see full year being 30 percent more than 2020 so 2.275 billion)
The only short term issue is the shipping costs which is world wide in every industry BUT with air travel returning to normal this cost will also normalise.
If you look at the revenue growth of BOO in the most simple way possible from 2012 to today it has 30 x its revenue!! YES 30 x !!
Lets not forget BOO carries a margin of over 9.5 percent. (ASOS under 5 percent)
Anyone that thinks growth is about to stunt is completely out of touch with reality or they just cant read - Just wait until the acquisitions really start to kick in now we are in the post Covid era!!
The current warehousing and logistics are good for 4 billion of revenue as well so capex will drop back nicely for a few years.
Just take a look at this chart for revenue growth !! - https://www.statista.com/statistics/794862/boohoo-plc-group-revenue-worldwide/
Now compare the above with ASOS - from 2012 to today its revenue has gone from 570 million to 3.2 billion which means ASOS has increased its revenue x 5.7
https://www.statista.com/statistics/485103/asos-revenue-worldwide/
Boohoo and plt are solid brands that people aspire to wear....
Just looks what's in the boo stable -
Boohoo
Boohoo man
Karen millen
Nasty gal
Pretty little thing
Oasis
Coast
Miss pap
Warehouse
Burton
Wallis
Dorothy perkins
Debenhams
That's some serious brands right there.
Boohoo current trading.....
The company is currently ahead of the 20 percent growth achieved in q2....
Consumer demand has been improving through August, principally in the UK but also in key overseas markets such as Ireland and France, where there has been a re-acceleration in the rate of growth. This has again improved in September, where the rate of gross sales growth has increased compared to that achieved in the second quarter of the financial year.
Our expectation is for full year sales growth of 20% to 25%, implying sales growth of 20% to 30% in the second half of the financial year. As we have indicated above, we have seen a re-acceleration in the rate of growth compared to that achieved in the second quarter.
The Group expects to emerge from the pandemic in a far stronger position compared to two years ago. Reflecting significant investments in its platform,
Remind me again Kallumama , why are you here , oh yes, trying to scare people into selling
Lovely.. great day here and thg.. buy low sell high and ignore the trolls
How's abf doing kalluminger, sub 1800 I see. Should spend more time researching and cheerleading your own stocks.
Done nicely holding core ISA and trading volatility. just sold some have to take profit and need you to work your magic so I can buy more when/if it goes down again.
Looking great but 203 is still very cheap.
203 wow
Yes it’s out the traps now all right
I think the shorts are getting the bloodbath
Shorts closing?
another fine bloodbath..... I can see this back to 260-300 before year end.... hope I am right!
As they say one swallow does not a summer make (but it's a bloody good start!)
"Bricks and mortar cannot afford any more tax so the government is only going to look at more profitable businesses i.e. online businesses"
That above statement by kalluminger is hilarious - Its not that they cant afford more tax its actually that bricks and mortar shops are dead and buried and the government know it!! you just need accept it!!
"they also need to save the environment from harmful effects of delivery drivers rather than people walking to the town centres and shopping"
That one above is ridiculous lol....who the hell walks to town?? what's better for the environment - 100s of cars driving to a town centre for a few items or a man in a van delivering 100s or parcels to people at home ??
The “much of a difference” point is referring to demand. The point above is referring to profitability. Both statements can be true
I fully agree with you re the high street. And I agree with you this tax is not the way to do it
But just because boohoo has a higher EBIT margin doesn’t mean this doesn’t impact share price (if boohoo have to saddle any of this tax - and that’s IF). An investor will have a EBIT % in mind and a return period if 6% drops to 5% that’s a 16% drop in profit forecast. So a 16% drop in valuation
Stocks are valued on forecast earnings. If those earnings look to be lower then value drops
I’m just presenting a middle view. Clearly the design of this tax is to clip the wings of online. I’m just laying out some points
"RE: Looking strong againToday 08:28
2pc tax at a sales level on businesses that are looking for a 4% EBIT margin
Go away work out the maths and let me know what that does
What you also aren’t factoring is is that competitors who are less U.K. focused are free to make 100p in the £1 so can grow stronger while we lose 2% of 50% of our revenue
If you understand this sector you’d know this was a big deal and hence why it’s stupid"
Dan you are telling me here it's a big deal then 2 minutes later you state this below lol
"The point isn’t a weakening in demand. I think we all agree an extra 2% across the board won’t make much of a difference"
I've told you several times boohoo carries a much larger ebit margin that all of its competitors, the absolute lowest was in this recent update (6.6 pc) due to all the excess shipping costs. The average ebit each year is 9 percent which is phenomenal!!
I don't think people really believe this tax is to help the high-street compete do they?! More like they know the high street is dying so they need to leech money from other area's to make up for what they lose when the high-street is gone!!
If VAT was scrapped and we held prices then profits would rise by more than 20% as the VAT is at sales level and profits are after costs.
Sorry the 4% EBIT figure is asos (it was just on my head) I think boohoo is 5-6% but still run the numbers
I’m not “deramping” here my point is be very angry about this. Somehow you all think “yeah no issue” well that attitude is going to make it happen
If any of this cost fall to boohoo then it’s a big dint to profit. Also what if it effects businesses of a certain size? The huge ground gained on bedroom brands reverses. Its too one dimensional to be relaxed about it
Anyone saw Pedro the troll? ha
Dan please show me where boohoo has an ebit of 4pc ?
Like lumber costs, freight costs will come down again and the world moves on. The spike $10k instead of $1k per container was never sustainable.
It will normalise at $3k $5k but this will be lower than the peak and the temporary blip disappears in time.
All systems are go for the markets to mid 2022 and the institutions are putting a false narrative out IMHO (biggest stock market crash in history :) ) just to soak up cheap stocks.
The problem is a visit to the shop due to poor stock and poor number of lines forces the consumer back online anyway.
An upwards shift in tax isn't going to remove the convenience, just like payments for returning goods hasn't.
Online works for me too everytime. The 2% tax will still leave things cheaper compared to bricks and mortar.
I would rather chat to the postman / delivery driver than deal will out of stock, wrong size, no fitting rooms and unhelpful shop assistants every time.
Same if it is 5%.
All of these taxes, fraud fines, NI etc just get passed back to the consumer and the world rolls on. No one is fooled but the sheep vent and are distracted.
All govts take as much wealth as possible. The great reset and scamdemic are just the playbook.
Great start to the week, still a lot more to come here but definitely feeling better about my position and decision to keep averaging down. We’ll be back in the 300’s before we know it.
Dan I understand what you are saying but when the nasty government introduces a nasty tax that’s passed on reluctantly by the retailer to the customer. I could argue that our profits would go up 20% overnight if vat was abolished but of course they wouldn’t.
The issue with an online tax is will it push prices up to a point where a customer feels that the benefit of shopping online is lost and choose to shop offline instead. At 2% I would suggest that is unlikely.
Container costs dropping - watch this & asos recover
Dan - My assumption is that if this was to come in (which I think is highly unlikely) it would be like a vat rise and would be passed onto the consumer therefore not affecting margin, they would soon get used to paying it, and life goes on as normal. As long as it's across the board and all our competitors have to charge it then the playing field is level.
A £10 dress will become £10.20. Enough to jump in the car to Primark ..... I dont think so ...
2pc tax at a sales level on businesses that are looking for a 4% EBIT margin
Go away work out the maths and let me know what that does
What you also aren’t factoring is is that competitors who are less U.K. focused are free to make 100p in the £1 so can grow stronger while we lose 2% of 50% of our revenue
If you understand this sector you’d know this was a big deal and hence why it’s stupid
Thinking “it’s only 2%” youve not much clue
“Capex coming down” apparently too!