The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen 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.
Still don't get you as depreciation and amortisation will continue to rise each year for the foreseeable future and operating costs are higher than operating revenue - hence the reported operating loss of £21m. They do in places also show operating costs excluding D&A (maybe you mean this) but it is a fairly meaningless number and if they can't cover these with revenue then that really would be alarming!
If anything the figures flatter BOO - HOWEVER they are taking action to improve profitability and this may start to feed through in the year end results.
"The point I'm making is that, just looking at the day to day running of the business it remains in the blue. Revenue less cost of sales and operating costs is a positive number.
Depreciation and amortization are now significant numbers but the actual costs were largely incurred several years ago with automation and brand purchases and will have little impact on the actual business going forward.
So the numbers aren't entirely terrible which the market cap implies.
There remains an underlying viable business"
Oh my dear God, it still hasn't sunk in, has it? The business is wrecked because despite its operating profitability, the board consistently obliterates this with ill-judged acquisitions, write-downs, write-offs, chasing the dream with poorly thought-out facility investments/closures, all sorts. Until this is corrected, expect many more woefully underperforming years. Rest assured, the top bods will all take home millions regardless.
The point I'm making is that, just looking at the day to day running of the business it remains in the blue. Revenue less cost of sales and operating costs is a positive number.
Depreciation and amortization are now significant numbers but the actual costs were largely incurred several years ago with automation and brand purchases and will have little impact on the actual business going forward.
So the numbers aren't entirely terrible which the market cap implies.
There remains an underlying viable business
Not sure of the point you are making as depreciation and amortisation is used in order to give a fairer view of profit - if it wasn't done that way the profit line would look even worse. The cash figure is directly affected by capex but there would have been a net outflow even without any capex and only a small net inflow if you excluded the EBT share purchase as well. So even if the capex had not been elevated (just 'normal') and there were no share purchases then there would still have been a net cash outflow.
They also made an operating loss of £21m so they are not currently profitable at the operating level - maybe you are referring to adjusted EBITDA (?) but that is a different thing to operating P/L and excludes all manner of costs.
I would hope though that they've reached the bottom as far as profitability goes and the FY results will see a change in direction with losses starting to reduce and a clear path back to profits even if the headlines themselves aren't great.
Hexam yes the business made a loss at the half year, but the loss was based c£50m or so of depreciation and amortization. Cash outflow was based on elevated capex and shares issued.
At the operating level the business was profitable. Not as profitable as in the previous year but profitable still.
It will be interesting to see if this is maintained at the full year
"as in the business is fundamentally massively profitable other than boohoos intent on buying DCs etc?"
Not sure how you work that out. BOO made a loss at half-year and it still would have been a loss with no DC purchases. It is not fundamentally profitable at the moment, let alone massively, which is a big factor in why the sp is where it is just now.
Hopefully the full year results will show clear signs of a route back to profitability with progress on improving margins, in particular from cost savings and possibly pricing too.
Ocean - boohoo are still aggressively chasing growth in one of the toughest times, a multitude of exterior forces have dramatically hit profitability over the last 2 years.
I don't think there are many clothing retailers that haven't hit a tough point in their history, next, sports direct and many more have all bounced back strong....
Regardless of whats posted here, the online clothing market is set to treble in the uk over the next 5 years...
Boohoo are in a position now to capture a nice chunk of that market...
Just skimmed through the HY24 results a couple of other comments:
- pre-tax profit appears to be in line with projections
- underlying £75M capex spend with further spend intended supported by cost savings
Would be say banks would view this favourably? as in the business is fundamentally massively profitable other than boohoos intent on buying DCs etc?
Near term for me BofA called it right in commenting the current share price implies the business is not a going concern, and, that when this becomes clear the share price will re-rate. In my view 60p easy on favourable news, and complete collapse on a failed return to profit. At this stage I think Boohoo will return to profit. And I think we will find out the answer to this question fairly soon. barlcays profit projections indicate FY24 driving the most profit growth.
Its all "manipulation" i tell you.
Definately worth £6.50 at least - all day long.
For a big boxful
Seems old tradeys warpdrive deflector running on 4* superleaded now lol.
At least one on here who has posted honestly he'd take the 80p if offered. Others posted a week back they'd took under 40p.
Seems Only old tradey that needs £4 to come out even
Still to shy to post his average though - bit of a Prince Harry that one
Shame boohoo could not purchase it.
If ts/tm and plt where put up for sale simultaneously, which would be more in demand?
All your ranting wont lift the price I'm afraid
It's firmly in the doghouse.
Staggering denial
Yup retail sector flying, an opportunity to create some liquidity, yet they don't take it yet again.
The obvious question is why
The same question could also be asked of the uninvested troll who posts absolute rubbish on a share where he has no investment and only infests one board
Here you go Jeremy to help you with your case when writing in with your wealth of expertise in the field.
Let us all know the response eh
Report wrongdoing or misconduct in financial services | FCA
https://www.fca.org.uk/contact/report-wrongdoing-misconduct
"Iffy market"
Those pesky MMs again!
Total joke!
If I'm completely honest I can't see this trading above £1 for a VERY long time. It was valued on massive P/E ratio's before 2022 because it was growing exponetially, 40-50% revenue increase year on year with a very healthy profit margin. Unfortunately it is now in large revenue decline territory and loss making hence the massive re-rate in SP.
Southcoast, is that you???
650
This is just the beginning for boohoo. All the acquisitions and warehouse expansion were in hindsight done at the worst possible time but there are serious roots in place now. The future growth here will be immense and in turn so will shareholder returns. Sit back and see what unfolds in the coming years.
I like 80p, I like 250p more. Can't imagine we will see either anytime soon.
Reardon,
80p is very low. No?
If we are hitting pre-covid levels / better…. Then we should be re-aligned to a true re-rate. From that point of view as markets are forward looking, the sp takeover offer should be in multiples of that.
My opinion would be £2.50 + per share.
Anyone agrees with my pov?
Daytrade compare and contrast the snippets from your two previous posts. Why do you think you are so special? It's just hypocritical BS isn't it?
You have no idea at all on what anybody, other than yourself, will accept. Do you.
Im sure an awful lot of people would bite anybodies arm off for 80p here.
"he is in it fit the long run"
Told you thus over pie and mash did he
Missguided