We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Inventory up 1.5M - This should translate into an additional 3.25M revenue at current gross profit margin of c60%. Assuming inventory levels are being well managed then we could all be totally surprised of revenue increase in H2!!
i see the 188% C+L increase was later amended to 88% so it would appear FinnCap numbers are more realistic, if a little conservative. Hopefully Roots and C+L will at least mirror H1 performance so maybe £1m and £400k respectively rather than the 900k and 300k quoted.
Still think ST rev of H2, our largest revenue earner by a country mile, is conservative especially as we've now got an additional 800 Boots stores (albeit the smaller ones) and over 700 Tesco.
Guessing this maybe as H2 large order from Boots may have been slightly lower than anticipated as they will still have some stock left over from last year.
With Roots not performing very well we do need another product to start taking pressure off ST. The life science division generates low revenues and C+L growth is disappointing considering stores has increased by a factor of 10.
Hopefully NUthink will fill this void.
Cash position is a bit of a concern but if £500k has already been spent on Nuthink (300k development and 200k marketing) and inventory has risen by c£1m to cover H2 demand then this should right itself quite quickly.
Hopefully rev of c£15m and profit c£2m are still achievable.
today's broker note seems a little rushed and revenue guidance of £14.7m seems very conservative.
Looking at the numbers they have ST rev of £12.5m (only 3% growth in H2) Roots 0.9, C+L 0.3 , Prolong 0.5, NUthing 0.4 and Growlase 0.1.
There are 3 growth areas here not represented in these figures. Firstly ST should grow by more than 3% in H2 especially as we are now in an extra 800 Boots and over 700 Tesco stores. These initial orders could be c£250k in total for starters.
I expect ST to grow by over 10% in H2 so can see rev well over £13m for full year (H1 was 4.2m).
C+L. They have miscalculated this. RNS states growth of 188% and they have quoted 88%. Full year should be c500k not the 300k they have estimated - so £200k improvement.
Finally the £500k Far East order for Prolong is not in figures - assume they are not sure if regulatory approval will be given. Whilst a reasonable approach to take if it does come in then rev will clearly rise by this amount.
All in i think the figures are c£1m light not including Prolong deal.
If marketing costs can be managed in H2 then £2m profit is still very much achievable IMHO.
First 7 weeks rev up 17% in comparison with 2019 so a decent start - probably helped by increased Boots order though.