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Such a vague agm statement , net at similar levels from last year wtf does this mean is it more or less?
We remain in an offer period and are in discussions with serval interested parties but no guarantee of an offer.
This is such vague statements , if it was good he would say what debt levels are .
If anyone dares to ask awkward questions at AGM they will now be told to refer to the RNS (which actually contains no numbers at all)
PS Black Friday “happened “ in previous FY
Lack of details could be because they want to be 1st to market and keeping things under wraps.
Where are the voting results?
Anyway of viewing online?? It’s not available via investormeetcompany?
Black Friday may have 'happened' in prior year - but only by 6 days
Black Friday is no longer a day or weekend sale - it tends to span 2 weeks before and 2 weeks after
It is also fair to say that they will have sourced devices in that period which give them the momentum into 2023/4
Robswire - as ever your glass is half empty
Guessing Christmas was irrelevant as doesn’t warrant a mention
Usual clown picking apart RNS.
Broadly in line and about the same - mean exactly that - whether its a little higher or a lttle lower - the change is not considered significant.
Nice to have it clearly documented that 'Several discussions remain ongoing' and that the regulator has deemed them serious enough for them to remain in 'offer period' and that the regulator has granted them anonimity.
I also like the nod to profitability; it sounds like it has lots of focus and nice to see the reference to its significance for the medium term. If they can show improved profitability - this share will warrant a significant re-rate
I am content with the update - the fact is it offered no surprises which is what I want from my investments.
Hedge, it's not good in my opinion.
Net debt has not dropped despite cost cutting/streamlining.
Business is 'broadly in line' ... if it was even marginally better than expected they'd have said 'higher end' of expectation.
Importing product from the US is a business grappling to eek the last bit of margin out a product.
Multiple interest chats likely to be with insurers and maybe a couple of channel sellers like Eurostar/New World etc ... waste of time.
New product categories will be more investment, stock etc.
What little has been said screams of a management team trying to fuddle through how to turn the ship.
Suddenly this share price is at the level it should be and frankly should be taken lower to reflect the risk.
If I'm not mistaken net debt rose from £7.9m reported 30 November 2022 to £13.7 reported 31 May 2023.
Then reduced to £13.1m reported 30 November 2023 and stands today "at similar levels to the same period in 2023."
- My intepretation is that thaey have found £5m (or not lost another £5m).
- I don't like the term "broadly", that sounds loose to me.
- I like the term several as this could drive up the price. On the other hand my interpretation is that they are not close (waiting for trading update in 3-4 weeks time).
Don't really understand why they would need any special dispensation from the rule requirements. What's the big deal in keeping that information private?
"The Panel Executive has granted a dispensation from the requirements of Rule 2.4(a) and Rule 2.4(b) of the Takeover Code such that the Company is not required to identify any potential offeror with which the Company is in talks, or from which an approach has been received."
This is the only reason I could see:
"Where, prior to an offeror having announced a firm intention to make an offer, the board of the offeree company announces that it is seeking one or more potential offerors for the offeree company by means of a formal sale process, the Panel will normally grant a dispensation from the requirements of Rules 2.4(a) and (b"
So this suggests an intention to make a formal offer?
It says "prior to" an offer. That doesnt mean an offer is on the table. It means what it says - there is no offer, but they are seeking them.
Could be time for them to admit no offer is coming forward now. Pretty absurd to to be running an offer period since November. Whoever has been speaking to them has strung them along for long enough, and if they were going to make an offer they would have done so by now. Whoever's been kicking the tyres all this time likely just wants to be first out of the gate bidding for assets out of admin.
Could be that, or you could see it as they're working closely together to mutually agree a price that they're both happy with. Personally, I see it as a positive that the offeror hasn't been told to sling their hook immediately.
Lots of glasses half empty
The takeover panel are not there to 'let MMAG' string people along. If the dispensation has been granted, it will be for genuine reasons.
There will be a few takers of shares at this level
Seems Martin Hellawell has been busy with Raspberry Pi.
Personally, I think MMAG has potential, but it should have walked away from negotiations to sell the business. A bid is best when it comes out of the blue, often at a substantial premium.
By leaving the 'for sale' sign up, indicates the directors are going to be negotiating from a point of weakness, as they are often seeking an exit.
Just my opinion, but I took a relatively small holding here last week, so I'm a half full person in general.
It used to be a perfectly fine business but management made two major mistakes. The first was rolling out kiosks which have required millions in capex and took this from being in a comfortable net cash position to where it is today. Second fatal error was rentals, there's no demand for renting used phones and just results in defaults, less cash upfront, and being stuck with stock that depreciates rapidly.
Clearly with both endeavours they wanted a growth story to try to sell to investors, but it hasn't worked out that way. If they simply accepted they were best placed by sticking to being a traditional retailer, they could have avoided bleeding cash and taking on the huge amounts of debt that may well ultimately kill the business.
I disagree, management made some great decisions for their personal bank accounts by getting a merchant bank to over inflate the IPO valuation and mug a load of gullible private investors. Welcome to the unregulated UK stock exchange, I feel sorry for you LTH's. JMO Adyor!
The problem is they have not eaten at some of the net debt Hedge. That needed to be a priority to increase perceived value here. So for me it's a reduction in holding with a target to buy again at sub 5.50. I still think they are far from failure but on the flipside what they are trying to do in terms of shoring things up is a bit lame.
I think they should have shut/sold the US op entirely.
That's a whopper (450k)
if they sold decluttr, what would it be worth? ai indicates it generated 29 mil in sales in it's last report.
assuming an ebitda of 5% and a very prudent multiple of 3, that provides a value of circa 4-5million.
i know there's more than one way to skin a cat, but that doesn't seem too bad for a company with the mcap of mmag... if it's an american company that were to buy it, surely they may even pay a higher valuation than my *** packet calc above?
This statement from the AGM Statement keeps coming to mind.
"The Company recently introduced the strategy of unlocking a 'world of inventory' from people's homes and is expected to launch certain new product categories shortly. "
I just hope we don't see some "wild" idea that they can somehow become experts at being a Trade In site for anything and everything....Stick to what you know and have some expertise in, would be my advice, just do it better and then sell it out for real cash in short order.