Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Boohoo urges Government to plug tax loophole exploited by Shein — before it attempts to list in London
https://www.thesun.co.uk/money/27808842/boohoo-government-plug-tax-loophole-shein/
Yesterday's dead cat and all
Clearly not one for the rampsters on here taken from that snippet
Looking ahead, Boohoo remains optimistic about its growth potential, focusing on sustainable and profitable expansion strategies. Nonetheless, analysts caution that the company’s tarnished reputation and financial struggles pose significant challenges to its recovery and long-term viability in the highly competitive online retail landscape"
Oooh scb
Had three weetabix this morning
So Yuri you are expecting inflated pandemic costs to carry forward despite the business being part way through a massive cost savings programme and having let the best part of a thousand people go.
You are probably right that a higher revenue figure is required to deliver a decent profit but it's nothing like £2bn
See the turkey still not lighting the rocket boosters and shooting to the moon.
In fact its heading downwards currently from yesterdays 'spike', having not even got back to where it was pre-results.
Some clearly taking the oppo to escape having pulled back losses.
18% down YTD.
Terrible performance.
Now we can all sit here languishing in still more 'radio silence' waiting for the next set of numbers, can bet your bottom dollar that the board will be just as slack with comms till then.
Therefore the numbers from my initial post are correct..
That's distribution costs,
admin expenses:
FY24 £473m
FY23 ££530m
FY22 £515m
FY21 £400m
Hexam, perhaps your numbers are coming from report of alternative universe but on my screen I see for
FY24 £360m+£71.5m(exceptional)=£431.5m (total)
FY23 £428m+£20m(exceptional)=£448m (total)
FY22 £488m+£28m(exceptional)=£516m (total) - but this was for much higher revenues (nearly £2B)
FY21 £422m total
It looks pretty much consistent at £400m (yet again - variable component as F{TR,..} ).
As I've mentioned previously - facts, not expectations/beliefs/dreams/hopes/dogmas.
The announcement of the upcoming capital markets day is great news, I said a long while ago that the bod here need to run a capital markets day in order to show the market their vision for the business/debs etc etc...
It seems they are going to use the platform to list probably half of the current brands which is also a good idea rather than running separately.
This is a bit of bitter pill for the bod to swallow as I believe they thought their days of answering to the market were long behind them, but this move shows they recognised the need to inform the market of the vision.
Hexam - will you be attending the agm? I feel we would bury the hatchet in person.
Thanks JWB, let's see if it can motor there pretty sharpish :)
With capex plunging ahead there probably a bigger move to be had if honest. Debenhams seems to be on front foot also. 40p would be first target
Yuri - I think your numbers are iffy so no wonder you are so pessimistic. Distribution costs were only £327m for FY24 and admin (including marketing) was £372m - so both much lower than the numbers you cite and with more savings to come.
The blinkered are out early this morning.
Interesting theory that's kind of debunked immediately when checking the company has made profit every year except when being hit with external inflation and excess shipping costs etc etc etc...
Yuri, do we believe you, or Boohoo's accountants who know the financial position inside out, and their auditors? I think I trust the latter more than you! If they are optimistic, then so am I! They are not alone in having issues since Brexit, and transitioning is painful, but its clear they are now sailing in to calmer waters, so hoist the sails!
There's no rationale for improvement, costs of stales will stay around 50% of revenues (profit margin), distribution costs will be roughly £400m (variable component), admin expenses will stay at around £500m, therefore without £2B of revenues actually materializing - this is toast and current sp is way too high (currently it's priced like it's already happened and there's no risk of it not delivering which is ridiculous since it's based purely on faith, not the facts).
JWB, what's your exit point here, 40p?
Hi Ocean,
The £100m cash outflow you asked about is described and detailed in the report.
The actual cash flow of the operations was broadly break-even. This was £130m worse than last year almost entirely due to the inventories which went down around £100m last year (as they tightened up on this) and up nearly £30m this year (to support the US DC).
So this is the main reason cash flow is so much worse than last year.
The £100m total outflow though doesn’t come from the operations (as I said l, that was breakeven) but from capex (£65m), EBT shares purchased (£15m) and net interest and lease costs (£23m) and a few other small ins and outs. In total these were broadly the same as last year - again pointing to the change in inventory as the main cause of cash deteriorating.
FY2025 will be better because of lower capex and hopefully better operating cash flow (with lower costs and better inventory) but probably not enough to give positive overall cash flow (though just the FCF bit ought to be - as they’ve said).
By the way most of the £50m cost of closure of the DC you mentioned did not impact cash. It was mostly just a write off of the assets held on the balance sheet so just hit profit not cash. The cash cost of the closure was less than £10m.
Fair play JWB looks like you timed your buy in well yesterday.
Im expecting this to improve better than what's forecast for this year in the market... Q1 I think will show more improvements again within the business.
It's already a 1000 staff lighter than last year also
Major European markets traded mixed on Thursday as investors await the Bank of England's latest monetary policy decision. Today, Ferrovial, Telefónica, EDP, Enel, Pirelli, and Salvatore Ferragamo will publish their results.
At 8:01 am CET, the DAX and the FTSE 100 were flat, while the CAC 40 fell 0.20%. A minute later, the pan-European Euro Stoxx 50 inched down 0.30%.
On the currency front, the euro was flat against the dollar at 8:00 am CET, selling for $1.07435. In comparison, the pound lost 0.06% to go for $1.24906 at the same time.
Baha Breaking News (BBN) / JG
The business was making over double the margin on 20% is more sales in the past which created cash for organic growth
In my view the CEO has done well and set trends followed by ASOS, savage cost cutting being the big one
A slight negative net profit would also see the debt facility largely deleted
Classic rights issue stuff debt management and growth.
But yes still need to figure out where the c£100M in cash went in FY24
Hey ocean - I read your post last night and this morning... My thoughts on a few lf the points...
"Need to review more closely how cash has been depleted. I see a £50M exceptional cost associated with DC closure but surely it doesnt cost them that to turns the lights out and lock the door."
It looks to me like they have kitchen sinked this year to streamline the business taking all associated costs in an already not good year. (hopefully to start this year with a cleaniish slate)
" Im my view if FY25 pans about give or take on forecast the business will be back on track but still needing to invest/expand. wouldnt surprise me in the slightly if a 2026 rights issue was annouced."
Im not sure there is that much more to invest with all the infrastructure in place, the company have said capex will be smaller as well.
" with impaired margins it would make more sense to do a RI versus take on debt to maintain the business in the medium term."
I think they will probably sell the london office to generate at least 100 million quid.
If they attempt a rights issue they will kiss good buy to large parts of their own bonus plans which are reliant solely on share price.
They have adjusted the bonus incentive scheme a second time which was voted in their favour of, but it was a narrow victory.... If they try a rights issue and a bonus scheme adjustment I feel the scheme adjustment would be a white wash "NO".
John lyttles lives are maxed out imo - no way will he get another chance of a new bonus scheme.