Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Glad you brought that up superzero
Increased website visits and out performing the competition is one reason to think the strategy may be working
Absolutely, just like all the other media out there, conspiracy you know
Https://ukinvestormagazine.co.uk/boohoo-shares-fall-out-of-fashion-as-sales-disappoint/
Surey that's fake news paced by the shorters
Inews quoting HL as saying
"For now, it remains a struggling company with a tarnished reputation"
https://inews.co.uk/news/business/boohoo-struggle-159m-loss-3045596
The US warehouse and stock has cost a lot of capital. Of course this was going to dent the balance sheet. But it is an investment. Debt in that context is very serviceable and low compared to UK peers. I really am surprised by this doom and gloom about what is in reality very modest levels of debt for a company with this level of turnover and revenue.
Investment requires up front costs. Why did anyone expect this to be any different?
The biggest beneficiary here is MA - he is probably rubbing his hands in glee at the thought of a back door TO that he would not have expected at these knockdown prices. Let's hope LTH's get at least some degree of fair value for having invested early. ATB
How about similarweb?
Not doubt that is propping the figures up
RCF appears to be costing them £22.5m in fees interest and charges per year from what i read - almost doubled from last period, so quite a chunk.
Can someone show me in the results where all these profits are from the returned clothes? I was assured by coasty that returned clothes were going to be an unstoppable cash generator for the business. All I see is a multi million pound hit, on top of the multi million pound hit last year too. So confused.
But some green shoots springing up
Well there was one surprise that I wasn't expecting in the results and that was the size of the exceptional items! That and a £20m increase in deprecation led to a massive loss number
Revenue was impacted by Debenhams as I said it would be. It's not just the commission cost, it's the opportunity foregone for the other brands where marketing spend drives a far higher £ return. The reduction in revenue on labels seems to have hit a maximum reduction and now and core brands seem to be gaining momentum. There is a caution however, in that the reduction from 9% to 4% may be a mix of slightly softer comparators and improving momentum. I've not had time to look closely enough yet.
It's great to see GMV being quoted and it helps to show the massive growth curve Debenhams is going through. I still hope to see a partial spin off in the next couple of years.
The business seems to be operating far more efficiently now and still further cost savings to be made. I'm a little concerned that margin is down in half two but that is likely due to the US DC.
Liquidity I don't think is a concern at the moment but it could become so. £230m remains of the RCF, reducing to £165m at some point next summer. It is quite possible there will be another cash outflow this year, although I hope not, by about £30-40m.
EBITDA has remained broadly flat and at an operating level the business is just about washing its face.
I hope all of the restructuring costs have now been accounted for, other than the USDC and it seems likely to me.
It seems that the UK market is gaining confidence, the focus on the core brands seems to be the right strategy, especially Debenhams. But it is still highly competitive out there.
It seems to me that the bottom may well be in but Q1 results are now very important
I've posted a few times that this is the last set of results that COVID can be used as an explanation.
It's still all to play for and you either believe in the strategy or not. If you do, the potential upside is hundreds of percent, if you don't sell up
Imho, dyor
It's too early to judge performance of the US
Other than that,
Broke - I agree that liquidity is not an issue yet but also agree that it looks to be possibly heading that way.
I’ve just checked and the £75m of RCF that was reported as not being extended will need to be repaid in March 2025. That won’t help matters along with (as I believe) any overall cash outflow over the next year.
I don’t think the company themselves have confirmed the situation with the RCF though? Besides there still should enough leeway so long as they can turn things around quickly enough and keep a tight rein on working capital in the meantime.
It's actually a relief to see some informed debate here rather than the usual trading of insults this share in particular has been plagued by. Well done folk and please carry on as I am finding this quite interesting. Atb
'I don't think many of these posters really hold any shares or they wouldn't be blatantly misleading people.' I have been a holder here for years. Its hardly misleading stating facts.
'Free Cash Flow is expected to be positive i.e. cash flow AFTER capex - clue being in the word "free". So anyone telling you "overall cash flow" is negative is doesn't know what they are talking about.'
The debt we service isn't free though, and for me at least is increasingly becoming a concern?
'"Liquidity appears to be an issue" - erm no, it is not. They have over £200m cash on the balance sheet and while net debt is £100m, this should come down in FY2025 as FCF turns positive.'
You misquoted me, I did said liquidity is becoming an issue. Boo have always had a strong balance sheet and have been cash rich vs now we are in 100m net debt? This is definitely a downgrade in liquidity vs the fundamentals when I bought into this company.
Take the "boohoorider" seriously
Blimey man have you still not worked out how competly off the wall it is to have that name handle and posting idiotic bling pictures of a watch.
It looks very very messed up and something clearly aint plugged in upstairs
“I can only assume it was one man band companies as no proper company would use an unqualified person to do their numbers.”
Actually something I agree with you SCB! Problem is I never said I was unqualified.
It shouldn’t matter what I am or am not and I doubt anybody is remotely interested. I only mention such things because you keep throwing out lies about me and I don’t go into more detail as that’s my business and I would just come across as a dick probably anyway (cue obvious reply).
If you or anybody disagrees with what I write then happy to debate sensibly but just attacking me rather than the content of what I write is just boring and clogs up the board.
Hexam - until you challenge the troll jargon you have zero credibility... Come on we all know there's a little gang in a background group and you are the one that they perceive you to be the best with financials... Why else wouldn't you challenge their outright lies?... Oh hang on you hate "rampers".... Or is it you hate anyone that holds shares and anything we say remotely positive goes against the game...
Looks like Debs is the jewel in the crown here…MA is going to gunning for this big time!
Buyers are clearly loading here
Happy - Free Cash outflow in FY23 was £63m but overall cash outflow was just over £100m. The difference is mainly interest, EBT share purchases and lease payments all of which are excluded from FCF. These will be similar in 2024 (or a little less maybe) so again overall cash flow will probably be £30 to £40m less than FCF.
This assumes no new capital raised or repaid (not sure offhand when the £75m RCF that hasn’t been extended will be repaid).
"The flagship USA distribution saw revenues decline by 18%. "
And this expensive DC was supposed to be leading the charge back to profits, according to the BOO oracle on here. dear oh dear.
Hexam, never explain a single thing to coasty. Just a sick parasite, who adds no value whatsoever.
Mind blown
SCB of all people questioning others
4 billion pound company you state scb, at what point may revenue be a third of that???
In a growing market you keep telling us
The flagship USA distribution saw revenues decline by 18%.
All non-core brands are to be moved in to Debenhams.
Lots in this RNS including masking the truth - downhill from now & reliant on a booming economy to get it out of trouble.
Strong buy before any dip & there will be many to come. 36p top whack until Q3 unless some majors jump in.
"I wrote to the BOD 12 months ago and said why don’t you do a sale and lease back on the properties and generate over £124m….."
Tradey lol.
“Oh come on Heaxm - you stated you have done the numbers for companies and advised them... None of which should be done without qualification (numbers) and experience (owning and running companies)”
I’ll try and make it simple for you - again.
I have prepared accounts and written commentaries on them.
I have not advised companies only the CEO etc of the companies I’ve worked for and prepared the accounts for.
I am not a qualified accountant nor have I ever owned (or run) a business but neither is necessary for what I have done.
It would be nice if you could challenge me on the content of what I have written rather than just throw out childish, petulant and irrelevant insults.
For example to you think overall cash flow will be positive in FY25 and why?
I thought my summary of the financials was balanced in the circumstances but if there was any element you think was unfair or wrong then let’s hear it?