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Keep ramping chaps, hope it works for us before the next cash raise. The numbers don't quite stack up and cash would be tight after the 1st half. Really can't see what they are doing different except blame the previous lot, even the language is the same as before. Proof will be in the 1st half results but certainly think something is afoot and don't think MW is doing things for all shareholders. He is like every other entrepreneur and will sell out the company when he thinks he has made enough.
Take the hint people.
He has not finished imo.
And merry Christmas!!
This is now looking very attractive again after several years in the doldrums. A very powerful post from Mark Ward yesterday - his arrival signalled a future change in fortunes for this company, as he is a serious entrepreneur with a proven track record. Looks like he's stabilised and turned the business around in a remarkably short time-frame, and, with the relatively few shares in issue, this is likely to see the kind of jumps that some of us enjoyed about 4 years ago. The company had large ambitions then and, in my view, tried to run before it could walk, but it now has a master business tactician at the helm and is on a much surer strategic footing. Glad to be back on board today in the thirties and shall pick up some more at these sub-50p levels as funds become available. Seasons' Greetings one and all!
He’s also a large holder of ALGW.
Hope he has been spending time with the team there and can spin some magic.
Also noted on LinkedIn that CloudCoco is another that he’s involved in.
Perhaps one to keep an eye on as it is a IT service company which seems to be his area ….
Interesting (& perhaps telling) how Mark Ward's article suggests he's running the show. Whereas, he's actually a NON EXEC Director (albeit with the largest shareholding by far). Not that I'd complain if he was in charge, given his stellar track record elsewhere & his obvious confidence in IDP (given his ever-growing shareholding) .
Would not fit in one post!
In short, almost every aspect of the business has been improved upon over the past year and we go into 2022 as a strong company with a bright future.
I’m particularly excited about the advances we’ve made with regards to new product development. InnovaDerma, and in particular our Skinny Tan brand, has always been known for it’s great product range and our team will be launching some amazing and innovative new products over the next 12 to 24 months.
I would like to take this opportunity to thank the entire InnovaDerma team for their hard work and dedication over what has been a very challenging period, it’s been tough but our best days are just ahead of us.
I would also like to thank our long suffering and supportive shareholders, I feel your pain and I’m confident we now have the right strategy and the right team to ensure InnovaDerma reaches it’s full potential. As a management team we are now 100% focused on doing what is in the best interests of our shareholders and ensuring we generate meaningful returns for them.
We still have a long way to go to ensure we’re truly best in class however I’m confident that we’ll get there.
Have a great Xmas!
Mark.
https://www.innovaderma.com/wp-content/uploads/2021/12/Annual-Report-2021.pdf
Thanks gregpeck7
HighFive - GREAT FIND...
I am posting here in full for anyone without a Linked in Profile.
Really good to publish InnovaDerma’s results this week, these can be found by following the link at the bottom of this post.
I’ve been an investor in InnovaDerma for some time and joined the board when it became obvious that the company was significantly lacking both strategic direction and operational focus.
Whilst some of the issues were very obvious from the outside, it was only when I joined the board that the full extent of the problems became apparent. It was clear immediately that we needed to refresh the board and install a new executive management team who would ensure that InnovaDerma’s full potential could be met and that the company was run for the benefit of it’s shareholders, employees and consumers.
We implemented the board and executive management changes quickly and whilst the sheer scale of historic issues has meant it’s taken longer than anticipated, we have now successfully revamped, refocused and reinvigorated the company.
A huge amount has changed over the past 12 months :
· We’ve resolved and reversed some incorrect and inappropriate accounting treatment which had been going on for years.
· We’ve focused on profitable revenue, as opposed to just growing revenue at any cost.
· We’ve significantly improved our gross margin by well over 1,000 basis points.
· We’ve refreshed our DTC offering, our websites and our social media platforms whilst also entering into a strategic relationship with Amazon which has already generated material returns.
· We’ve entered into an influencer partnership with Liberty Poole, a popular Love Island contestant with over 1.5m followers, to ensure we can target an enlarged demographic for our Skinny Tan brand.
· We’ve significantly overhauled our operations and logistics to ensure that our consumers actually receive the products that they order within the timescales they expect, we’ve also increased the quality of these products to ensure that over 75% of our consumers give us a 5* rating.
· We’ve significantly simplified the company and implemented robust management information systems to ensure we fully understand our business performance in near real time.
· We’ve significantly cut down our spend on expensive 3rd party contractors and we’ve absolutely stopped money being paid to 3rd parties where there has been little or no obvious benefit to the company.
· We’ve engaged new UK based auditors and professional advisors to ensure we’re ready for our next phase of profitable growth.
· Etc etc
I could go on and on however without doubt our biggest achievement has been unleashing our team to reach their full potential, InnovaDerma have a skilled, engaged and passionate workforce who now have the strategic direction and focus to achieve great things.
In short, almos
I just stumbled across this article by Mark Ward on LinkedIn. Its really interesting to know how much has been going on in the background, it feels like the beginning of a new chapter.
https://www.linkedin.com/feed/update/urn:li:activity:6879759329331884032/
10k share limit. This is starting to get traction
The city have read the update, the numbers don't lie, its taken a while. Zero SP weakness and now the buys are coming. All the placing recipients could be averaging down here (miracle opp)
FOMO pre christmas setting in. This share price is bonkers...
Fill them boots.
The peck now has a nice load.
Stock continuing to get tighter and slowly edging up...
In other thoughts has anyone considered Skinny Tan to potentially be an idea addition to the likes of THG's beauty stable - and they have a huge war chest...
I don't see it lasting as an independent entity as long as these low equity prices persist...
GP
Also in summary this company has to be seen through different optics...
HC ran this down, he ramped it up but was ultimately putting puppets in charge, selling stock in dodgy ways and basically just trying to extract his equity.
Mgmt team now are totally different, Mark W (for me is doing the opposite) .. He sees the value but wants to grow it and nurture it. His "out" will be via private equity or a takeover IMO. It will not be selling in the market.
In more general terms the board are buyers of stock, the fund raise was significantly over subscribed, and I for one cannot you cannot buy into this business at these levels, and skinny tan is a fantastic business.
Sensible valuation will follow through here I am sure, the company is being run for the benefit of shareholders (not HC) and that is the big change. The brand is being well built, not pumped...
This is going to be a major success story next year IMO.
Load up now while you can as there will not be many shares available at these levels. You will look back and think about what might have been...
GP
Shandy seems to put zero value on the brand itself. Companies like this are all about building a brand. There clearly IS a turnaround in progress, as they state its gaining traction. They also say they are self sufficient now.
Margin improvements like the ones being reported are exceptional, especially when costs are rising.
Amazon shop is a massive plus and its not easy opening on Amazon.. All their stock is prime as well
They are doing all the right things now, Less revenue but MUCH more profitable than previously.
Remember this is 8m mkt cap! That is insane for this brand. I firmly believe another takeover will come knocking on the door at the VERY LEAST. Skinny tan is worth a lot of money, notoriously hard to measure brand valuations, but the pricing here is on its knees,
You can tell there wont be many shares bought down here as if you try and get a quote for a decent amount its always negotiated trade. Once a few larger buyers show up the 40p range will be back very quickly, at 70p its barely over 16m. There is so much equity potential here.
Also look at historical moves, once this thing starts moving up it does not do steady!
GP
I imagine marketing was high due to being concentrated on Facebook as per the RNS and FB advertising cost rocketed due to the lockdowns.
As they diversify advertising costs and as prices stabilise now that lockdowns will not be a thing then it should bring down the advertising costs for Google, FB etc.
I think revenue increasing 50% in Australia which had less lockdowns (according to the RNS) is a big sign of what will happen once the UK stops locking down.
I do believe that this is a turnaround. The risk-reward being offered is very good now and could become a classic peter lynch 10 bagger.
The reviews of the new products are very very good and so is the new branding.
Gross profit is only one indicator - currently IDP spend c40% of revenue on marketing and has done for a number of years. So despite having c1m followers on facebook, instagram etc it seems this expenditure has not dropped.
So for example if IDP made £15m rev p.a (a 50% uplift) that would be a healthy £9m gross profit. Yet if marketing was still at 40% then that's £6m cost so that leaves only £3m to cover wages and admin, which are currently c£3.5m.
Since the new BOD came in the marketing i receive has barely changed and i was being offered £10 deals for black friday, as i have been for the last 3 years.
If IDP get on top of the marketing spend and you could be right. Let's see how H1 looks - last year H1 was a disaster so it should not be hard to improve on that.
SMALL-CAP WINNERS & LOSERS: Innovaderma surges on optimistic prospects
And Shandy, I value the skinny tan brand alone at multiples of the Share price... It is notoriously difficult to value a brand but skinny tan is clearly valuable and I think ultimately it will lead to a takeover here.
Yes... But clearly the direction of travel is to profit.
Just look at the numbers.
Gross profit hardly moving despite a chunky drop in revenue, and a large jump in margin. These things take time. But by the time all of the information is out there the share price will have motored.
New broker note just out and I think price target is 91p.. They seem pretty happy with the way its going.
FY2021 FY2020(1) Change
Revenue(2) GBP10.2m GBP13.2m (22.7%)
---------- ---------- ---------
Gross profit GBP5.8m GBP6.0m (3.0%)
---------- ---------- ---------
Gross margin 56.7% 45.2% 1150 bps
GP - you do realise IDP made a net loss don't you?
Improving gross profit is encouraging however if marketing costs and wages/admin are too high then it is irrelevant.
H1 is usually a high cost period for IDP - let's see how the H1 numbers look in Jan/Feb before any evidence of a turn around can be justified.
Very very high level view on these results - is that with regard to the results relative to the mkt cap they are OUTSTANDING.
Considering the cost environment, to increase margin by 10 basis points is huge.. Thats a 20% margin improvement. They have less revenue than last year, but much more profitable...
They are now growing, and in another 6 months will be self sustaining and profitable, with a base that will support future PROFITABLE growth.
Fully expecting the pivot towards influencers to pay off big time personally.
These shares are so tightly held. Eyeballs will be coming over now.
You don't make the money after the turnaround, you make it spotting it just as its about to kick in... The turnaround here is clearly now well underway and next year is going to be transformational. a 20 - 30m maybe 40m mkt cap here is on the table. Skinny tan is a GREAT BRAND and is probably worth over 30m.
Will Creightons (CRL) come sniffing again while SP is still on the floor - I personally think so and I think that's why directors are loading up.
Have got a decent wedge of these, I have always liked the products, it was always HC that put me off. Seems we have a competent bunch at the helm now - and this now has the numbers to back up the claim that its turning around. Buying under 50p is simply stealing now.
Will dive in deeper through the day but I think the message here is STRONG BUY.
Then just hold for the recovery.
I am afraid the ghost of CRL lurks in the corridors. This has disappointed with all the hype of Ward and the management team. We would all be wealthier holding or selling CRL stock.
Still full ask for 10,000 shares - 35p... Someone buys and this is going up again..
Been taking a very close eye and added a few more. With the quality mgmt now in place, no debt and some significant skin in the game which is buying not selling (no more HC nonsense) IDP is back on the menu for me...
Could easily be another takeover offer once the green shoots become even clearer.. Buying under 50p just seems a no brainer now.. Expecting the brakes to come off this soon as more eyeballs arrive.
#IDP interview with CEO, Blake Hughes. Watch and listen to the last minute in particular where he talks about the transformation - more clear indication its profitable!"Behind the scenes there's been a lot of work to transform the business; to transform how we operate. Not all of it visible to our shareholders yet"https://www.youtube.com/watch?v=ueAX3pm4r9A
Quick spruce up before the video call with Katie and....damn, cut myself with the razor....a bit of toilet paper should hide it. Good plug for Nuthing at least.