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Seems the Year Low will be broken again soon. With higher fuel costs, wage costs and the NI increase next year not looking good going forward. I've set a limit BUY at 1650.
Will be interesting to see what impact Furlough & UC ending will have on Primark as their appeal is very much towards the low end of the Market. Out of interest dropped into one of their Stores last week...surprised how quiet the place was, staff nearly outnumbered customers. Anyway GL anyone holding, it’s currently not for me.
Gosh with the high shipping costs boohoo have just posted there must be some serious costs coming here & shops & staff too boot!
Did you know about the high container costs & warehouse shortage/costs to? Thanks to that same person
https://www.dailymail.co.uk/tvshowbiz/article-10031597/Khloe-Kardashian-rocks-skintight-dress-attending-Sheins-Fall-Winter-2021-fashion-show.html
More coverage about Shein event last night in the press courtesy of kallu on Boo board
https://twitter.com/abfinvestor/status/1440237308561616906?s=21
A famous retail analyst got his shirt in less than 48 hours with return address as Walsall
Thanks to Kallumama for sharing the news on Boo forum. Boo is fashion, cheap clothes from Shein probably affects Primark more hence sharing kallus concerns here instead.
Another broker downgrading, is this a concern?
I will not be buying back in here, their threat is underestimated.
India have banned Shein, from memory.
Luck to holders.
Yes but again they have online.
JD Sports had their Update today. Shares Up over 8% with same issues as Primark.
I think the High street will gravitate towards the best opportunities for value such as Next, Primark, JD Sport..
online is powering Next as their physical store sales continue to fall,
don't see any comparison in their respective retail models.
Without doubt covid has had an impact on ABF and a big one at that. And yes, market uncertainty still exists but I can and intend to hold the right stocks for years.
I am highly encouraged about the future of the company and feel the long term story of ABF will be a success.
Today’s highlights for me are:
Twinings and Ovaltine continuing to make strong progress.
Silverspoon and Westmill sales significantly ahead of pre covid levels.
AB Sugar had a strong Q4 with revenue expected to be 7% ahead of last year with savings made due to the ongoing performance improvement programme. Demand in the European market to he ahead of production.
Work to restart the Vivergo bioethanol plant is on track.
Illovo revenues to be ahead of last year. Efficiency gains to be made from the performance improvement programme.
Operations in Tanzania to be expanded and when completed to more than double sugar production.
Ingredients revenues up on last year and the expansion of the Brazilian yeast plant is well underway.
All businesses in ABF Ingredients experienced an acceleration of market demand.
Agriculture, adjusted operating profit is now expected to be ahead of last year.
Retail, like for like sales are expected to be 3% ahead of two years ago and the school ranges and Autumn wear have started well will margins improving. Fifteen new stores worldwide with an expectation of eleven new stores next year…with an acceleration in new store openings.
Implementation of a new digital platform to enhance functionality.
Substantial net cash balances with Board approval of a financial leverage policy….I wonder that means.
Net cash before lease liabilities is expected to be up by £0.3B to £1.9B, DESPITE covid.
Next did a similar revamp a couple of years back to ensure stock accuracy within stores and from all accounts with great success as well.
Another,
any view on Shein, other online competitors?. Thanks.
I think we are getting close to a point where ABF should use
some of the Primark cash flow to expand outside of retail.
I also thought Primark US sales growth was modest, particularly
as the US market has been largely without restrictions.
As fat profits says its more aimed at click and collect.
I work for primark and there plans to ensure stock accuracy to allow for this.
If you rang a store and asked do you have a certain product someone would look and hold it already for a day or two as is.
The difference is going to be around the whole range being featured in a way that allows customers to see the product like online shopping and the speed of the interface to "purchase it"
The difference is no shipping, packaging or return costs.
As the customer would have to come to store to get it.
They may then also have a browse and purchase other items.
The new sustainable update as referenced on the 17th by someone goes live to staff tommorow in stores and has a number of new and improved green commitments.
Which as an employee are great to see and play a part in.
Are we nearing this?.
Retail environment changing so rapidly.
I was out at the open just for transparency.
Interesting if “ click & collect” is the way forward....petrol/ car park charges/ time & balanced against the lazy home delivery option with charge. I favour the latter !
There are not about to go online, at least that's not how I read it.
It's a digital strategy that will allow customers to view all in store stock
and click and collect.
The reason the market has reacted this way is the Q4 Primark trading comments.
However, as mentioned ABF often sells off on results day unless an update is exceptional.
Seems Primarily is treading water so little surprise the inevitable online presence has now dawned on them and before they start losing Mkt share “ Data for the UK clothing, footwear and accessories markets, which includes all channel and online sales, for the 12 weeks from 31 May to 22 August showed that Primark had the same value share of the total market compared to the same period two years ago” . Will maintain a watching brief but not yet encouraged to buy into.
imv
Who is a complete nutcase?
Complete nutcase!
And they are about to go online:
Quote: As we look ahead, digital has a critical role to play as part of Primark's marketing mix. We are progressing the initial design and development for the new digital platform and recruitment of new talent to create a new digital capability within the business is underway. A new and improved customer-facing website will be launched in the next calendar year. Improved functionality will allow us to showcase a much larger proportion of the Primark range and to provide customers with range availability by store. We are also strengthening our digital marketing capability to enable us to deliver more personalised content to customers.
Decent run up in Friday’s share price.
Hopefully bodes well for Monday.
it may be different this time, but of late
ABF has popped in the open, to be sold off as the session progresses.
Now as ABF has underperformed over recent months there may arguably
be more leeway for upside this time. That is on the basis of a positive statement.
An increase in FY 2021 guidance would be a nice positive development.