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WiganWarriors, Mando_
oh i see ..sorry ..post lunch snoozing here ..you mean the Hosting part ...my oooops..thanks
@Pokerchips
www.thghosting.com
WiganWarriors
I am somewhat confused by your referral to cloud services like AWS or Microsoft Azure and THG proprietary platform.....the Ingenuity platform certainly isnt anything like AWS
The THG platform isnt designed to do what a AWS or Azure cloud platform does....and THG ICON isnt just about IT
Maybe you could clarify what you mean.....
Hosai. Well, my point is that building a large proprietary platform , initially for their own products, then deciding to try and sell the spare capacity to others and then try and brand this as something unique is not really a compelling business proposition. All those potential customers have many other choices from established cloud platform providers. For example, AWS, Microsoft, Google, Oracle etc. These guys live and breath management of large data centres, and have unlimited resources to ensure global presence, security, service level etc. This is their business.
What is THG's business, trying to compete with these guys, or sell beauty, health care products etc. Trying to do both is a risk too far. Of course, IMHO.
Wigan Warriors you are talking like ingenuity isn't priced in for free at this level (to be fair it was still priced in for free at 230p imo).
Cantona. I was slightly over egging the basic facts re last years cash outflow, just to try and get a few posters to stop and think . A high level of M & A might be construed as countering lack of organic growth, and with M & A comes goodwill right downs in a year or two, as sure as night follows day.
As for pouring cash into building an IT infrastructure, one really must ask why. Most small and mid size operations deploy into the cloud these days, as it cheaper, safer and generally will provide better service levels. If you want to build a large proprietary platform in house, you must have some unique business process propositions, as most standard e-commerce processes are well understood and can be implemented by all the major cloud providers. Its a huger risk, and will require shedloads of cash just to try and refresh that platform every couple of years to maintain currency and service levels. As for the software platform, again "picking and despatch" is now well understood and is available from either the standard IT providers or if you want something a little different you can contract use of Ocado's platform software and warehouse integration software.
This will end in tears, if it has not already done so .
@Wigan Warriors that burn funded a fair chunk of M&A and infrastructure...M&A pipeline less now and given SP low do not see them doing much more in short medium term if they wanted to do cash and paper transactions
as for outlook - ok never hit the ball out of the park or smashed numbers but given volatility and headwinds a fair result to come in line with consensus on CCY and outlook for 2022 held in line with IPO.....will be hard to rebuild the SP quickly as c25 people institutions holding around 80% of shares (@MarekQ posted a useful summary a while back) so balance will always lend to volatility....still think it will be a P2P with a PE backer in order and then re-list in US...as soon as price goes up it will be shorted. GLA all genuine LTHs ( we have seen this levels before so should end the week in the range of 185-200 or higher ig we get some TR-1 showing adding to holdings
£700m liquidity. Well, given last years burn rate of £1bn, that should last until autumn. As for people continuing to buy beauty products, that may be the case, but maybt not from THG.
Cash and facilities 31 Dec £530m plus undrawn facilities of £170m (3-5yrs term) = £700m
Cash and facilities 30 Sep £100 plus undrawn facilities of £600m (3-5yrs term) = £700m
Not sure on capex spend and balance sheet working cap unwind or build up but this is positive too in that plenty of liquidity