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They are using RBI as an excuse. If RBI lifted restrictions tomorrow, do you think FLFL will honour the deal that they themselves have stalled all year? Of course not.
We need £6 million to get us through to the next placing!
The more I think about it, I truly believe that FLFL have pulled out of the deal. They have been messing about with payments all year, missing the March 27th deadline with Koovs CEO Mary Turner & CFO Robert Pursell continuously making excuses for them.
I still don't understand what the £250k part payment was all about??? That was very strange.
Koovs need to forget about raising any future money in India.
It explains why Canaccord Genuity were brought in. Obviously for a placing. Whitman Howard can not go back to clients after the last 15p placing.
I also believe that any new money now coming in will have clauses in it, unless it is all provided by Alli ie Turner & Pursell must go.
Kishore Biyani has inadvertently stitched up Mary Turner, who will walk away with nothing. Her options are worthless.
I expect her resignation very shortly if Alli doesn't stump up all the cash. This is a chance for Alli to once again become the largest shareholder & take control back of the company.
The big spender CFO Robert Pursell will have to go too if Turner goes.
The trading update said it all. There were no comments from individual members of management. It was half heartedly written by a team on its way out. The numbers were good, but sentiment poor.
FLFL have had five weeks to reapply. It takes a couple of days to reapply. They have absolutely no intention of reapplying.
Its about time Koovs management were open, honest & transparent with shareholders.
I'm sure that Koovs are exhausting all options, but the only way Turner & Pursell will remain in post is if Alli puts all the money in himself.
There is no way that any other investor will come on board with these two failures still in post.
I should add, subject to RBI not allowing the investment, this would need to be done via an alternative investment vehicle of some form.
My understanding is that Koovs was originally formed in 2009 as an Indian version of Groupon. Where the name came from is anyone's guess.
Q. Can anyone tell me how did the company get the name Koovs?
Just curious?
I have absolutely no idea but as I said previously, my view would be to give Biyani a larger stake, up to 50%, in return for the agreed investment now and an additional investment to see the business through to profitability. And if I was Biyani I would ask for the same plus an agreement on a buyout price to buy Alli's remaining shares. That way Biyani will get what he ultimately wants, full control, and investors can recover their investment to date.
For the last few years, I questioned the CFO Robert Pursell on the excessive spending. He has always stated that it was to scale up growth, to create the brand, technology & platform.
They are getting there & I just cannot envisage failure at this point.
If it was going to fail, it would have been last year. They have definitely had the wool pulled over their eyes by FLFL & Biyani.
Do you see a loan or placing for the £6 million?
If I was a major participant in this or future funding, I would DEMAND A CHANGE in the current management. The Chairman needs to cast aside his loyalties towards these two (CEO & CFO) & start acting in the best interests of shareholders for a change.
Wtf? Are you schooled in Anglais?
Indian stock markets have hit record highs this month. That doesn't tally with an economy in recession. The IMF still have India as one of the top 10 fastest growing economies in the world in 2019. The truth is it's a growth slowdown, not a recession. It may be true to say that demonitisation affected some parts of the Indian economy more than others. Diwali sales this Autumn look to have been much stronger than initially anticipated. https://economictimes.indiatimes.com/industry/services/retail/diwali-sales-give-retailers-relief-finally/articleshow/71798711.cms?from=mdr
I've been through the Koovs employees on Linkedin and I don't see any significant movement is staff. However, for the first time in a long time I don't see any vacancies either. What I have always found difficult to fathom with Koovs is quite why they need so many staff for a business turning over £6.4m. There seems to be a real problem with forecasting and the ability to align costs. With Koovs I think it's easy to become distracted by the vagaries of the Indian economy and lose sight of the of a business needing to do the basics right.
I anticipate trading is OK. It would be tragic for them to come this far not to raise the additional funds. But at the same time they have to cut costs and have clear sight of profitability.
Tom, I have repeatedly questioned why Koovs has missed its targets year after year, after a promising start.
The CFO has reiterated the same answer time & time again- demonetisation!
The Chairman has been extremely loyal to both the CEO Mary Turner & CFO Robert Pursell.
https://www.huffingtonpost.in/entry/indian-economy-recession-demonetisation-black-money_in_5dc53e34e4b00927b231296c?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvLnVrLw&guce_referrer_sig=AQAAAE0zf-YWHLboBkBKQ03Jl1k28CgLzFPclHbqTLl0gRyZsm8fPU5zG2kxzavAOzggN6c6Cj6ZMAacaSYeuK7-vem2JhlET9knveFyEUXpwYxYatYhDYoOHkPNEhHCv8XNHvNqyaplj6OchD40gLy0L7wbf43MBYi1EWtsODDomEV5
https://www.news18.com/news/india/self-inflicted-wound-on-indian-economy-youth-congress-stages-demonstration-against-demonetisation-2378605.html
Demonetisation along with stict FDI rules are being blamed for the slowdown in the Indian economy.
I do believe that demonetisation was the major setback with Koovs, but poor management & weak negotiating skills against the far more superior & shrewd Indians was also a factor.
£28k in the space of a few minutes.....leaky leaky??
Mary Turner 1st May 2016 said:
"We saw revenues growing to about GBP 10 million last year, (revenue at 31 Mar 2016 was actually £5.2m) which was three times growth over previous year. This year, we expect to see similar growth. We have said we will be profitable by March 2019 and we are delivering to that target, she added."
Profit before tax at 31 March 2019 -£15.51m
If you were the Chairman what would you do?
Interesting flurry of buying, is news coming
It has now been over 5 weeks since FLFL were told to reapply. They still haven't.
Although blaming the RBI, they have messed Koovs about since the beginning of the year when March 27th was the date we were meant to get our 15p funds.
I personally believe that they have defaulted on their payment & that Koovs must look elsewhere now, without jeopardising the relationship with FLFL, as Koovs needs them to move forward in India.
So what now?
Chairman Lord Waheed Alli must be trying to arrange a loan or an emergency placing (which could cause mass dilution).
Moving forwards, forget further fundraising from India- it is nothing but a headache.
A Capital Markets Day will follow to drum up interest.
I really hope that the Directors participate in any future fundraising, especially the CFO Robert Pursell who doesn't own a single share in the company. It's easy blowing £15 million a year with out of control spending when you don't own any of the company.
Compare him to the Cake Box CBOX CFO who bought over £200k of shares yesterday & now owns nearly 10% of the company. That's integrity, loyalty & commitment for you.
That’s because you’re not a director and only making comments within any basic of Facebook
Free issue from FLFL ,more than one way to skin a cat
Are Koovs even cash conserving?
Why haven't the Board of Directors all suspended their pay?
The following was sent to Koovs today by an activist shareholder
Afternoon
Please see attached item's
I have noticed that the product's on the KOOVS website has been increasing massively, the screen shots attached just show KOOVS own products for women
As you can see one shows just over 1000 items and this is from a month or 2 ago
The other screenshot shows just over 2000 items for today
In my opinion this is not the actions that a company 4 weeks away from administration would be taking, it seems to me that KOOVS must have sorted their funding issue but has not updated the market?
If KOOVS HAVE NOT SORTED THEIR FUNDING ISSUE I WOULD SAY THAT THE COMPANY IS ACTING WITH NEGLIGENCE, I SEE NO SIGN OF CASH CONSERVATION?
Hi Putneylad ,
Agree with your statement on the increase in their stocks listing 'All seems to be running as per normal with Koovs now increasing their own range to over 2000 products, up 50 from yesterday.'
This doens't look likely to fail now. They are doing against what ever they RNS'ed. These are not conservative measures. I will be adding more. I believe the funding news may come in the 2nd or 3rd week of December before the Christmas holiday.
I think this is the time to hold tight with your current holdings. Everytime when the funding was sorted the share price shooted 5 times from its low. So this time it could be 10p to 12p. I also noted that this Share is in under the control of MM's ATM. I been waiting so long for the next upcoming move.
All the best guys!
I wonder what the new Chief Creative Officer Christian Westphal thinks of all this?
All seems to be running as per normal with Koovs now increasing their own range to over 2000 products, up 50 from yesterday.
There is also a new competition on the ever growing Instagram page.
Just look at Sosander & what quality management can do with quality statements. The last trading statement from Koovs drastically undersold their progress.
Great find Tom! ASOS failed miserably in China & I'm surprised that they haven't made a bigger push into India.
It has been 5 weeks since FLFL were told to reapply & it doesn't look like they have bothered yet. Personally I have no faith in them.
Alli (Chairman) needs to be looking elsewhere now for funds. ASOS or Boohoo are both cash rich. ALLI is worth £212 million & is well connected.
The Telegraph article also stated a £6 million placing, that is small change for Alli & his chums.
I just hope that the inept Directors who have overseen the dramatic fall over the last few years are either heavily involved in the placing, or shown the back door.
Birge added: "I am incredibly excited to be joining ASOS. Its world-class brand and recent infrastructure investments mean it is well placed to accelerate its global growth plans, and I can't wait to join the team and play my part."
https://www.businesscloud.co.uk/news/asos-appoints-ecommerce-expert-as-chief-growth-officer
Global Growth Plans! - Dear Mr Birge, I attach a copy of the 2019 State of Fashion report published by world renowned management experts McKinsey & Company, India looks promising! Yours Baron Alli of Norbury #winwin
Koovs are remaining pretty quiet as they try & sort out funding.
What we do know is what was said to a journalist form The Telegraph a few weeks ago from a source close to the company.
'Lord Alli previously admitted he listed Koovs too soon. But despite suggestions that he could take it private, a source close to the company said the plan was to keep it public and come up with a Plan B if the investment from Future Group does not come through'
"He is pretty firmly behind the business", said another source close to the company. He will keep it running while the financials are being put in place."
Those are the exact words from the article. Let's hope that Plan B will be unleashed soon.....
Tom,i certainly agree,with online being on a constant rise,with middle class indians now expanding ,shopping online will be a huge huge benefit for koov and other western dominated platforms,to me it would make sense for Asos,Boo,Next etc to take a jority stake into koov ,koov have demonstrated with the latest numberss,with additional partnership / merge will no doubt add value and hence take to the Sp to higher ,as with all things compliance are issues and this is where we are atm with koovs moving forward
I reckon it was a buy...