Eve Sleep Share Chat (EVE)

Apparently not; not sure why though!

Can the AGM be watched online? Anyone got a link?

Hopefully someone will attend today’s meeting in person and update all of us not able to be there.

Thanks D-G. Like everyone here I guess - just want EVE to do as well as poss.

Don't give, they are not really free delivery, it's included in the price. But if everyone else offers free delivery then you look less attractive. When it's 'hidden' in the price perhaps the customer thinks they are getting a better quality mattress at £549 than at £539 plus delivery charge.
They must have done the sums.. Her degree is in psychology :)
I guess they charge as much as they possibly can do, in order to sell them against the competition – and hopefully make a profit.

Would a £10 delivery fee really put off many customers if they read the Which reviews and see EVE mattresses recommended highly by Which and is also confirmed by TP reviews mentioning the initial Which recommendations?
But hopefully management have everything under control.

It would be nice to have all the directors seeking re-election today explain why they deserve to be reappointed as from this time last year cash spent from 8.3 million to 4.5 million. SP near 1.5p from 5p ish!!!!
And then to ask for rights to be able to issue up to 1/3 more shares if they so wish?

I hope the share price slide gets a mention.

https://www.beststartup.co.uk/united-kingdoms-60-most-impressive-successful-ceos-in-the-lifestyle-space/

'United Kingdom’s 60 Most Impressive & Successful CEO’s in the Lifestyle Space'

Fortunately the EVE business does seem to be progressing as per March 22 news:-

https://www.furniturenews.net/news/articles/2022/03/1043523192-eve-sleep-enjoys-further-growth

Dontgive, I recall CC said that DFS deliver themselves so maybe DFS in Europe don't want to hold stock just yet, until they've seen how eve goes in the UK. DFS are in Spain aren't they? Could it be that they have limited space and want their own goodies there. There isn't any marketing of eve sleep in Spain (so far as I know) so the sales of a premium brand might be fairly limited if no one has heard of it.

Definitely D-G.
I don’t know why EVE don’t seem to have asked DFS to also try the EVE mattresses in the other DFS trading jurisdictions? But perhaps there is a good reason too.

I notice that DFS are down -31.33% since I bookmarked them on good results a while ago, and Dunelm -38.91%, since .. whenever.

In roughly the same period I don't think eve have fallen by much more.

I wonder whether it would affect DFS's ability to launch bids atm. Simba must be finding it tougher, as must the others (emma, Nectar, Tempur) these days. Profit is important but what's vital is to keep trading, and still be trading, when things improve.

with UK inflation suggested to be 9 or 20 percent —- perhaps staff redundancies and only selling lower volumes at full prices to maximum profit potential and ride out this inflation period slowly building up cash?
Who knows; things may be going fine at EVE presently?

It does say at the end of the AGM notification about the directors stating they believe the points to be voted on are in the best interests of shareholders. Maybe they could expand on the reasoning and if so maybe we could all understand the boards logic too - possibly with a clear explanation we could all think the same too — but with just vague statements it’s not easy to interpret the exact meanings!

I could be wrong (perhaps if there's some sort of discount) but diluting the company by 33% and increasing the bank balance with the proceeds should (more or less) cancel out for us shouldn't it? So we would theoretically have less valuable shares but own more 'cash in the bank'. And the company would have more cash to invest?

We should end up with a smaller stake in a more successful company. If they aver do it, which they say they probably won't... (I bet they do, sooner or later.)

The problem would be if the added investment in marketing or product development (hopefully not bonuses and salary increases unless fully justified) did not generate any profit but more losses follow instead, so that the cash just depletes again. And even then a smaller stake in a failing company is not much more painful than a bigger stake in a failing company.

As ever it all hinges on getting to profit.

Don’t think selling 1/3 value of the company for 1 million pounds would be a good deal for current shareholders.
Maybe someone could ask at the AGM why the directors are seeking this extra share issue ability at present? They had forecast a 1.6 million spend in their projected 2022 plan and stated they should have 3 million going into 2023 trading year —- and that’s only if they don’t actually begin making money to add onto the current bank balance.

CompoundInterest, this gives them a very good incentive to drive the SP up because if they don’t they will not raise any significant amount.

As posted below, they can raise £916k per 1p:

Selling the 91.6 mil at 1p they receive £916k
Selling them at 10p they receive £9.16 million

Does that mean they are only permitted to issue one-third of the company's share capital (current float (i.e. 274,742,418 shares)) which means at current market cap (4.5m) and share price (1.6p), if raise at current share price then the maximum they can raise is 1.5mil? But usually rights issues are issued at a discounted price so it's likely they may only be able to raise about 1mil? That's not much is it?

I gone through the numbers.

They are asking for authority to issue shares equivalent to £91,580.81 which equates to 91,580,810 shares (0f 0.1p nominal value)

So, this is authority to increase the number of shares by another 91.6 million shares (rounding up) which is 33.33% of current float (i.e. 274,742,418 shares)

They are also asking for authority to sell direct to the market (as per my interpretation, I may have it wrong) shares up to nominal value of £13,737.12 at a time. This equates to 13,737,120 shares.

If all of these shares are sold then it will result to 33.33% dilution - If they are sold.

Selling these at current SP level though will not bring much money in since 91.6 million shares is valued at £916k peer 1p.

So it will only bring in substantial money unless sold at much higher SP - Hopefully an incentive to drive the SP up.

I don't have the details in front of me but recall they said they don't intend to issue them (presumably they might, or what's the point) and the resolution would be renewed annually. I guess it gives them flexibility to reward as and when necessary rather than anything else.

If we trust CC (I do) then I guess she is doing it for the right reasons.

Lots in the media today on shortages of talented people for job roles. Might help explain why eve have been saying what good employers they are of late. I think CC spotted the problem fairly early, early enough to take steps to mitigate.

Definitely initially it was a disappointing set of results from what previously upbeat communications had been coming from EVE. The spend on French advertising during 2021 is highlighting as not producing the expected upturn in French sales at the time!
Thankful the need for very careful spending now has been mentioned and so it seems it is now a slow and steady onward march by EVE.
Yes the mention of shares issues is not what one would have hoped to read but is it so the directors can have the power to award themselves and the EVE staff? ( if so would like target SP set in here such as 5p then 7.5p and 10p bands etc I.e. rewarded for reaching set targets) or is it to provide EVE with the opportunity for a capital raise?
Maybe some shareholders will be in a position to vote on the various points at the AGM?

Sentiment here right now stands at zero, in fact negative and doesn’t look like the AGM tomorrow will reverse this.

Two of the resolutions (main ones) are on issuing shares, I don’t see this as good for shareholders - - Any views on this?

Hi Firex. I hadn’t picked up on the location and any implication. I can only think that it’s a matter of making the meeting accessible to shareholders this year in particular, as the office in Camden is probably not very easy to have strangers walking into. FinnCap will be used to hosting such things regularly I guess. It isn’t far from the eve office so easy for the big-wigs to make their way over.

I could easily be wrong of course :)

Let’s hope for more blue days.

DG, any thoughts on why they are holding the AGM at the brokers office, (could there have been a bid)? I don't suspect a placing as the news flow has been non existent, to prop up the SP. GLA FX