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Prob hopes she will get her financial sh@t together in next 12 months.
Difficult to see what levers can be pulled to do that as surely she would have already done it.
The revenue increases are too slow against cash burn, you don’t need to be a mathematical genius on this
I wonder how the Eve Chairman feels … he has recently been loading up.
Sincere question:
If they stopped spending so heavily on marketing what do you all think would happen to revenue/losses?
I believe they would drop/widen but only my opinion.
However if my opinion is wrong and revenues wouldn’t suffer as a result then why are they wasting the millions they can barely afford on it?
Last time I saw a CEO deflect losses by claiming they were basically optional was Wework Ceo. Look what happened there.
If EVE are suggesting it’s the brand building that’s causing the cash burn I would truly suggest the brands not strong enough and the money hasn’t been well spent there either, the sloth isn’t particularly likeable or memorable in my opinion
Just like my posts….
I liked the mcap v sales and cash is the bank aspect of this investment but patience isn’t always a virtue in companies who have no clear indication of profitability
Excellent post Wyn.
When you divorce the SP from the company then is trouble. Shareholder value, in the absence of dividends, is in the value of the SP.
The BOD needs to look after the SP, because for an AIM company the SP is the heart of the company. I hope they do something soon to bring value.
Take a look at ALBA, the CEO bought a whole year’s ISA allowance in ALBA shares and the SP has bagged already … and ALBA is just an exploration company with no revenues at this stage.
The patience is admirable but I would question CC's performance personally if you think that is a key indicator.
Her job or at least a big part of it is to increase shareholder value. She has other bods to actually run the company
The original lockdown gave a good lift and impetus to sales that is just about being sustained but the overheads are still relative to the sales, very high. It feels to me on the figures that it hasn't really kicked on from there.
It would be good to know what fixed overheads are so a stab at revenue growth could then be translated to bottom line profit.
I guess it B/E circa around £28m?. Thereafter every £m increase in sales would be worth what to the bottom line?.
Given it was what 11% over 2 years?, then perhaps a 20% increase in sales to start producing a couple of Mil profit? but how long will that take?
France looks to me to have moved from pretty important to essential as its difficult to see 20% growth coming from the UK&I markets soon enough. And irt will need to be explosive as its from a small base.
I liked the job adverts as it came across as a funky, "good" employer" but I hope the culture is not too much on "fun" and thy are missing a trick elsewhere on getting the most from their employee's.
I get that many here will still be content to wait for another 12 months of sales and updates (which is perfectly fine), but the market's patience is at present, in short supply.
Due to a likely lack of reported news now, its difficult seeing much improvement in the SP and I guess, it could drift down as some holders get bored waiting
Yet again i think it an example of divorcing the SP from the company. The problem is, its the SP that is key & King.
Just my thoughts but if a take over happens it could and is likely to, come out of nowhere very suddenly. Personally that would be my best bet of what will happen over the next 6-12 months.
If its down to EVE alone, then the long slog that seemed likely 2 years ago looks to being fulfilled now.
I feel a need to stick up for eve's management and reporting in the light of many recent comments.
The results were actually slightly better than I expected, based on formal documentation and presentations from the company verified by other research in Web traffic, review volumes, broker notes etc. All that info has been posted here (thanks to those responsible)and available for all of us to verify and analyse. I don't think the company are at fault if people have cherry-picked the good parts and not balanced that with the bad parts.
Same with the 'profitability' quotes. All the ones I recall seeing and hearing were qualified ('moving into', 'UK and Ireland' etc) but I think people have just seen the 'p' word and got overexcited. Thinking more widely, how do you expect a company to accurately forecast how many individual people will buy an eve mattress over the next couple of years rather than an Emma or a holiday?
While I'm on my high horse, it amuses me that some people want to advise the experienced board of the company when it seems from their comments that they have remarkably little understanding of business, retail, accounts or investing. It really is funny.
I sold 30% of my holding on Tuesday, expecting an initial drop on Wednesday on disappointment but then a recovery on basic value. If I had realised how many people are so out of touch with reality I would have sold a lot more. I assumed the comments were just ramping, not people actually believing it!
I get that people are upset because the TU wasn't what they expected but I don't think the company can reasonably be blamed for that.