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What's really annoying is £12k of share sales results in a loss of £400k from the company market value!! My shares are now worth considerably less than what I paid for them.
The problem here is that people are selling and there doesn't appear to be much appetite for buying. Everytime there are a few thousand in sells the price goes down and there is no one picking up the loose stock so the price drops even further. As with most stocks, only good news is going to send this higher and with potential population lockdowns looming I dont see where the positive newsflow is going to come from for a good few weeks at least.
Selling afew bottles here & there lol
£12m worth last year and targeting £15m in sales this year
That's more than afew bottles... Mcap £7m approx with new product line just hitting stores
Very plausible upside here, I think if peeps arnt flying they will still want that sun kissed look
IDP current valuation is c£7m. In 2019 it made over £1m PAT and this year is due to increase revenues and profit. Coronavirus may have an impact but this is not a travel or entertainment stock so impact should be limited.
Surely this is massively undervalued even with current market sentiment
Really you are clasping at straws this has been in a downward trend for a long time. Selling a few bottles here and there, this is still going further down. I do enjoy the reports on Superdrug displays however. After working in retail for 24 years I wish someone like you had paid as much attention to my displays. Good luck with your investment Shandy.
clearly markets are tanking and corona will have an impact on the UK economy but as of today we don't know how much and for how long.
Experts are saying it is a winter virus so although March/April may be bad it should clear up as the temperature improves.
On the whole retailers should be least effected, which is good for IDP (other than the general slowdown in the economy) and we also have the DTC arm which lessens that impact too.
On a positive IDP has no debt and in H1 built up significant stock levels in anticipation of H2 so there should not be any supply issues. In Jan/Feb we delivered big orders to Boots and SD and Tesco initial order is about now. These payments will be received in H2 (c90 to 120 payment terms).
It is possible that there could even be a positive for IDP - if people take less foreign holidays this year then maybe more will buy self tanners.
Other products such as shampoos, skin care and the PE product (prolong) should be unaffected however these revenues are much lower.
So on balance hopefully H2 numbers are still achievable despite this black swan event
another director buy - every little bit helps!!!
https://www.sharesmagazine.co.uk/video/innovaderma-idp-joe-bayer-executive-chairman
Here is Joe's actual presentation - the powerpoint is as per the one on IDPs website.
In the presentation he refers to Priceline stores being increased from 450 to 480 stores. He then mentions ST is in all of these. If so great, however, he may have meant to say C+L which was already in 450 as from last year.
Questions start a c20 minutes. One guy dominates this and asks a multitude of questions.
Regarding non UK expansion this is c27 minutes.
now on superdrug's website
https://superdrug.com/search?text=nuthing
and nuthing.co.uk website is now live.
Fill your boots
Tesco deal - 714 stores.
I think this is for an initial 5 SKUs. As these are larger Tesco stores maybe 10 units of each at £8 per unit (if retail price is £19.99).
So that's over £250k initial order which will drop in H2. FinnCap has H2 ST growth of only 3%. 3% is c£250k so any uplift in sales via Boots, SD or DTC is not included here.
decent interview and they seem quite positive. Good to hear that choc range of ST is reaching a younger audience too.
KC mentioned that with the increase at Boots SKU coverage has increased from 8,700 to over 18,000.
Does that mean if 500 stores display 10 separate SKUs then that's 5,000 SKU coverage? If so whilst the initial 8,700 looks a little low as the really big stores (c400) had at least 15 SKUs so that's c6k SKU coverage alone.
However, more than doubling it for 2020 is clearly a massive positive.
I do think the negativity regarding the H1 loss and Roots performance has meant the massive positives re ST have been overlooked. Yes we are becoming a 1 product company, which is a concern, but that product is flying.
100% growth in C+L and Prolong is 1 or 2 % in ST which puts things into perspective.
New presentation released too (under company documents) - interesting that the DTC figures of 684k customers is ST only.
It is not IDP customers as a whole.
https://www.innovaderma.com/company-publications/
Inventory up 1.5M - This should translate into an additional 3.25M revenue at current gross profit margin of c60%. Assuming inventory levels are being well managed then we could all be totally surprised of revenue increase in H2!!
i see the 188% C+L increase was later amended to 88% so it would appear FinnCap numbers are more realistic, if a little conservative. Hopefully Roots and C+L will at least mirror H1 performance so maybe £1m and £400k respectively rather than the 900k and 300k quoted.
Still think ST rev of H2, our largest revenue earner by a country mile, is conservative especially as we've now got an additional 800 Boots stores (albeit the smaller ones) and over 700 Tesco.
Guessing this maybe as H2 large order from Boots may have been slightly lower than anticipated as they will still have some stock left over from last year.
With Roots not performing very well we do need another product to start taking pressure off ST. The life science division generates low revenues and C+L growth is disappointing considering stores has increased by a factor of 10.
Hopefully NUthink will fill this void.
Cash position is a bit of a concern but if £500k has already been spent on Nuthink (300k development and 200k marketing) and inventory has risen by c£1m to cover H2 demand then this should right itself quite quickly.
Hopefully rev of c£15m and profit c£2m are still achievable.
Is today to be seen as a classic example of sell on news? A complete overreaction by the market if you ask me but nobody seems to be buying the sells at this price so down it goes!!
The market certainly agrees with you. I guess not much will happen now until we get an indication of H2.
Disappointing.
You'd have to say it's a fairly disappointing update - It's obvious to see there is, currently, no real prosperous brand apart from ST.
-Roots revenue decline of 31% was much higher than I expected - not sure where they go from here as that seems a vast drop?!
-Life sciences not really moving anywhere, despite the board claiming yet again that progress is being made.
- C&L healthy growth but estimates of c£300k for the full year isn't exactly ground breaking.
It feels for me as though NUthing has built up some pressure to perform well from the initial launch - I'm impressed with the product & can see it fitting in the SD demographic (fingers crossed). It's fair to say this should be the last loss making H1 - NUthing should ensure consistent revenue/cash all year round.
Im not too disappointed by the RNS. I think its more important to show the finances are under firm control than to throw about needless dividend payments,. I am surprised at the number of sells but hopefully the buying will increase as people see the sales improvements in the ST range and the new hair removal products start to generate additional income.
(Alliance News) - InnovaDerma PLC on Tuesday posted a narrowed loss for the first half of its financial year, helped by strong sales from its Skinny Tan self-tanning brand.
Shares in InnovaDerma were down 2.6% at 75.00 pence in London in late morning trading.
The beauty, personal care, and life science products firm reported a GBP347,501 pretax loss for the six months ended December 31, narrowed from a GBP422,311 loss the previous year as revenue climbed 31% to GBP5.1 million from GBP3.9 million.
"Skinny Tan has performed well in the period under review and revenue was up 40% compared to the same period last year. This has been driven by the rollout into Boots, continued support from Superdrug and exceptional popularity of Wonder Serum and the Choc range," Innovaderma said.
It further added that "Skinny Tan is very well-positioned for the tanning season in the second half of the year".
Sales of its Prolong device, designed to prevent premature ejaculation, were up 71% year-on-year, with direct-to-customer sales higher thanks to "online 'influencers', predominantly in the US". However, "growth comes from a low base". Prolong is one of InnovaDerma's Life Sciences brands.
Trading in the second half of the year has aligned with InnovaDerma's expectations, with trading in the first seven weeks up 17% year-on-year.
Executive Chair Joe Bayer said: "Trading since period end has remained positive, and we have in place new product launches across our topical brands and will continue to build on our successes in geographical markets outside the UK. We believe we are well-positioned but remain mindful of the challenging retail sector. The board looks forward to further growth in the second half and beyond."
On Monday, InnovDerma launched its new hair removal brand, Nuthing, which will be stocked in all Superdrug stores starting March 11 and will be sold online through the company's direct-to-consumer platform.
By Anna Farley; annafarley@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
No need for a dividend for me. Let's grow the business first. Plenty of growth opportunities out there.
A 5% divi wouldn't break the bank!
Need a dividend strategy announcement.
today's broker note seems a little rushed and revenue guidance of £14.7m seems very conservative.
Looking at the numbers they have ST rev of £12.5m (only 3% growth in H2) Roots 0.9, C+L 0.3 , Prolong 0.5, NUthing 0.4 and Growlase 0.1.
There are 3 growth areas here not represented in these figures. Firstly ST should grow by more than 3% in H2 especially as we are now in an extra 800 Boots and over 700 Tesco stores. These initial orders could be c£250k in total for starters.
I expect ST to grow by over 10% in H2 so can see rev well over £13m for full year (H1 was 4.2m).
C+L. They have miscalculated this. RNS states growth of 188% and they have quoted 88%. Full year should be c500k not the 300k they have estimated - so £200k improvement.
Finally the £500k Far East order for Prolong is not in figures - assume they are not sure if regulatory approval will be given. Whilst a reasonable approach to take if it does come in then rev will clearly rise by this amount.
All in i think the figures are c£1m light not including Prolong deal.
If marketing costs can be managed in H2 then £2m profit is still very much achievable IMHO.
First 7 weeks rev up 17% in comparison with 2019 so a decent start - probably helped by increased Boots order though.
£200k of the marketing spend was for Nuthing so no sales attached yet.
The launch of Nuthing also opens the door to potential positive newsflow going forward
H1 2020 results are a little disappointing IMHO. I was hoping for small profit so to make a £300k loss, albeit better than H1 2019 is underwhelming. The increase in marketing spend (up £600k) is the main contributor here - as it is not peak tanning season and we have a database of over 600k customers i was hoping this would be managed better. Essentially rev increased by £1.2m due to £600k extra marketing spend.
On the positive ST is going great guns - now in every Boots store (fantastic) and also 700 Tescos - well done.
The extra inventory will no doubt be partly to manage the big early 2020 order for Boots stores plus SD and Tesco etc, as well as stock for NU Thing roll out.
Roots is a bit of a concern, but i could see this coming. The product is ok, i use it, but packaging is poor and price is high. IDPs excuse is poor too.
FinnCap broker note has reduced rev just under £15m and profit to £1.8. This seems to be worst case scenario as Roots is massively down and i think it assume Prolong will not get Far East regulatory approval during period. I also think there C+L figures are wrong and too low
Personally i think ST will offset part of this can hopefully NU Thing may surprise a few and make more than the £400k predicted.
£500k of cash flowing out for Nuthing. Without that we'd be at £0.9million of cash. The broker expects cash to be £2.2 million at year end.