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EVE continue to close the gap with Nectar.
EVE 11390 reviews vrs Nectar 11864 ( difference 474)
... so perhaps after Jan - March downturn EVE sales have/are recovering at a pace?
Dontgive, I think the sales have picked up this month (TP and Argos both indicate this) but the TP figures are still lower than any month since I've kept records, and by a margin.
Nearly at the end of June and eve currently have 158 reviews, so could get to.. 170?, with a very fair wind, by the end of the day tomorrow.
June 2021 was 231 and June 2021 was 197, and that was at a time when we were busy with the pandemic but unprofitable. I won't be getting my hopes up any time soon that things are much better than in the RNS.
However, it certainly must strengthen CC's hand in any negotiations. A lot easier to 'sell' the company when sales are rising and eve would become profitable more readily if costs are stripped out in a takeover, removing the cost of the office and BOD's salaries etc.
The share price today doesn't much affect the price at which any takeover would happen at, as stated by shenners earlier –unless that is there's some sort of leak which shouldn't happen but which could. Eve's sp is so responsive to small buys and sells that anything unusual would really stand out. HL has us 'up' a tiny bit atm I believe.
I'm sure that the last thing CC wants for eve is the FSP. She may have calculated that with sales rising and still a decent amount in the bank, now was the time to bring it to a head, if it's simply inevitable anyway.
But we do not know the situation here!
It’s just all guesswork presently.
If a decent SP is not offered I would hope EVE will find a way to sustainable profitability alone.
A fair deal would be if a buyer is found to offer a price per share BUT any current shareholders if wished could retain their interest and continue on as a shareholder in EVE if they so wished!
We don't know everything, we don't know very much on the bank balance, but 'find a way to sustainable profitability alone' isn't one of the options I'm afraid, or eve wouldn't be up for sale..
Have you given up hope D-G?
Not given up hope of selling the company (and for more than 0.7pps) but yes, given up all hope of eve making a profit alone.
I think plan B will be to scale the operation right back and run with modest profits. All the talk about this not being possible is ridiculous. Last year 26.6m revenue and £11m gross profit after distribution costs. We then had 7m on marketing, 3m on wages and 3m on admin which took us under water. Plan will likely be to turn off most of the marketing and rely on organic sales. Eve rank v well on google (type in double mattress, king mattress, hybrid mattress etc). The other bed in a box firms are nowhere to be seen but Eve are page 1 (the website alone has huge value). Revenue will likely drop to c.15m if they did this (possibly lower) but still leaving c.5-6m gross profit. Wages would drop as a smaller team would be needed. Marketing would drop close to zero. Other costs could also be stripped out. It's very possible to run the business for profit (even in the current climate) but you'd have to accept it will likely be in decline (or flat at best) and wouldn't have any real scale. It feels to me that they've moved early enough to put a plan B into action should plan A (a sale at a satisfactory price) not work out.
Yes they need to cut costs or increase profits ( not necessarily sales revenue). It seems ridiculous with 26.6 million turnover and 59% + gross margins portrayed that this is not a very profitable business!!!!!!
Aim, under your plan b, do you think CC would stay on board? Without CC I would have less confidence in eve plc though not everyone here is a fan of CC I know.
When I do the same google search as you eve's paid advert comes out top but they presumably pay for that, and Emma are in there (and Dusk??). There's nothing on eve in the main body of the page.
Certainly, if eve can manage 'get by' without going bust then that'd be a great relief and certainly strengthens the chance a higher sale price as they'll have a bargaining chip. I really don't want to lose a lot of money on eve.
The RNS wanted to portray their plan as the only option so we have no choice. That does suit them I know, and they'd certainly change their tune if they have another plan to 'sell'. In the old days, when they had bad news, they would always have a new target date for when profit would arrive, bearing in mind that whatever changes had come into force would take time to deliver profit. This time they basically said takeover, new money (or bust). That's what has made me pessimistic about their future as an independent.
Sorry DG - on those examples I gave they fall just off page 1 for double mattress (organically) but page 1 for king and hybrid among others. They do rank very well on google certainly compared to simba and emma. No idea if CC would stay on in a plan B scenario - would she want to go and make x% of the team redundant? I'm not sure. Hopefully she'd stay on though. In all honesty I'd be surprised if we get to that point. Someone will take us on and I'm just hoping its at a price that's not too bad. I think we have to be realistic about valuation so 'not too bad' might be the best we can hope for ;)
Perhaps D-G, we ( myself, Yanis, Michael, Aimtrader etc etc) can no only now patiently wait to see what deal the board of directors negotiate to present to current shareholders!
Not a nice situation to find ourselves in!
Thanks Aim. Double mattress was the one I went for!
It did cross my mind 'how long they could coast for' without a relatively highly paid CEO making the decisions. But it's not a plan that would really work in real life. CC is talented and whether she'd want to be head of a PLC with just a couple of dozen people seems unlikely, especially when she'd be in demand elsewhere.
As you say, someone will hopefully see the potential (assuming there is potential) for turning it profitable as part of a bigger concern, and pay us a fair price for the privilege.
DGU it's nice to see you realize the danger EVE is in I fully understand your commitment to EVE I like you and everyone just hope the BOD can pull something out of the hat but i won't be putting any more money here have lost too much already GLA
I shall be sad though Soton.... if EVE are not able to become a profitable thriving company and I still think it to be potentially valuable asset and still would not sell willingly for less than 10p a share - but what will be will be.
When there was 8.3 million in the bank I cautioned then on spending and encouraged not spending more than was coming into the business and even then to add a little to the bank balance always too.
... sad about the opportunity EVE presented itself to the world then only to now be on this FSP situation!
DGU do you hold anything else in the market? i hold 15 stocks and a couple of funds mainly ftse100 stocks feel a bit safer the AIM market has a lot of risk but a very good upside if you pick a winner.....
Yes several other stocks but I am very attached to the EVE philosophy!
Time will tell how we all fare here.
GLA
Or maybe I should say I am aware of the pros and cons of diversification!
... No is the honest answer Soton as I put everything into EVE - but feel a bit of a fool admitting it!
Don't know what to say really .....But admire your honesty just learn from this and invest in safer companies not sure where is safe at the mo might be best to hold fire or maybe drip feed monthly in to stocks or funds would say banks are a safe bet but i'm down in LLOY and HSBA best of luck to you and what ever you choose to do
Thanks Soton ( I believed everything put out by EVE & CC and even watching the March presentation where she promised to get a EVE core business to breakeven or profitability ( and not a hint of them considering an FSP situation) and still am shocked at how EVE are now in this seemingly bad situation!
GLA
Wasn't the March presentation 3 weeks after the Russian invasion? It was too early for them to know themselves exactly how it would pan out. Clearly we'd all discussed takeover (and eve had as they were asked about it during a Q&A months earlier) but I think they did believe in the company and didn't think a T/O would be necessary. I expect they are as surprised as us at the fall off in revenue.
Each to their own but if there's a sudden rally (it could happen IMO) I shall get 50% out. I don't want to get caught if there's a possible escape. That would be an error for me.
I’m still hopefully here!