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I don't think 40 million will touch the sides, they will be back for more unfortunately... GLA
Volatile period.
Does look promising but yet the share price is now going down again!
Directors also putting in one million quid on top.
Placing completed. 40.3m raised at 43p
No more giveaways.
Ohh sorry :) Thank you
Just looking through todays trades. Almost a million went through around mid day at 45p
Where can you see that?
I see the very large trades around the 45p price that the placing has got away and is possibly over subscribed.
Lets see if it holds! And keeps going up
Blue again?
Credit insurers are notorious for providing umbrellas when it's sunny not when it's spitting never mind raining. They are far from being a good gauge of their customer's (AO's) current or future financial prospects. However, make no mistake this is a worrying time for AO as it is for many businesses and customers.
Don't think any competitor has the appetite to take them or anyone over. My money is on them surviving the long run with the potential to make a profit for investors who get in or out at the right times.
Rofl.
Online will keep growing , and growing. Why on earth would you visit a shop to buy a fridge!
to the bulls-I suggest you re-read the statement from Monday. last sentence. You can't prioritise cash AND profit in this business. Either you sell stock at a big discount to bring in cash (which it appears is what theyre doing if you look at the website) or you focus on profit and margin.
the delay to the accounts signing was also clearly due to going concern status. more lies from Roberts
the "in-line" with expectations on Monday has become "materially in-line" today
presumably if it is line with April and they didn't raise capital then you have to wonder what's changed? hmm
£40m is not enough anyway. UK revenue in the peak year 3/2021 was £1.4bn. current trading is around -20% down on that we have been told. Trade payables at 30.9.21 were £331m. It doesn't take much of a swing in that number to suck up all the £40m
the real issue here as others have noted is the channel shift back to offline. AO does offer a good service but it doesnt offer the advice of Currys or John Lewis. Ceconomy is Europe's Currys, and their online division was -40% year on year in the quarter to March. Incredible really.
This £40m won't reassure the suppliers or the trade credit insurers who may have not been paying attention before Atradis acted
Lastly, don't forget the warranties issue hasn't been resolved. They accrue profits in advance of the cash from warranties arriving, in line with accounting standards. If the assumptions need to change though and people cancel more, this could wipe out a huge slug of the cumulative profitability of the business. Management always have refused to declare how much the profits are-and include it all in one segment. Given the comments on this Board from industry experts, and how many comments on Glassdoor are from warranty salespeople, it is likely it's basically all of profits on the sale of a delivered item
cheerio, hope this is helpful. happy to hear counter arguments. except for the one about online share growing further. we are at peak.
I honestly cannot tell where this is going to go hopefully not below 40p!
Like many others I almost bought more the other day following the RNS saying everything was fine. To me that just looks like a complete untruth and I don't know how the bod's can hold their heads up.
So will this go down more to 40p over the next few days?
Very small margin improvements here would see huge shift in profitability. Taken a few at 45p. Good value imo.
Correct.
It does seem to be that way at the moment, Shareholders are used as cash cows to rectify bad decisions from companies!
AJ Jones...never believe anything a company says... do your own research. If they raise money, they will do what all companies like AO world do, pee it up against the wall. Why would a company exec care - sure its only your money... and we can keep asking for more.
...and they've exited Germany which hitherto was a drain on cash.
Yes there is that structural change to online.
Post covid, the company now sells considerably more than pre-pandemic. That's the meaningful comparison.
There is a life cycle for white goods, meaning they need replacing regardless and AO is the 'go to' provider with v high customer satisfaction levels.
Company is moving into selling associated goods - internet of things is a structural tailwind for years to come.
The founder is a respected and talented retailer, AO is his baby, his life's work, and he has a big stake.
Price is dirt cheap right now, so the value is there.
There's a start - I'm sure others can add.
Not trying to be a troll here.. but.
I’m genuinely curious about why people expect this top do well / bounce back. What you are basing your valuations on.
The company has literally never made a profit except in years with lockdowns and the consensus forecasts which only go out to 22 and 23 are for losses both years and declining revenue. Prior to this raise they have £100m net debt and a liquidity crunch. There is a recession coming and they sell high value discretionary goods with very low margins. They don’t, and have never, paid a dividend as they don’t really generate any cash, in fact free cash flow has been negative in every year except those with lockdowns (it the completion were closed and people had excess cash as they weren’t going out). Even today they are still valued at 4.5x tangible book value. I’m struggling to see the investment case here.
I guess the counter argument is a strong belief in structural change to more online shopping and that they can grow too multiple times current size with a dominant market share and start generating significant cash in the future?
Please don’t attack me a troll, just stating some facts and trying to help the debate on the board.
Oh definitely!
Yes, you and me both.
I also think we'll be fine but there's a lesson to be learnt about the credibility of RNSs on AIM.