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Revenue growth miss but my concern is the debt. Seems to be on a profitable track and now the invitations can be made to funders for growth.
Lets see.
Brilliant
Hit the projected EBITDA number and decent cost savings announced. Hopefully the market likes what is said today.
Few trades coming in
Yes hopefully tomorrow and for it to not be good it would need to buck the trend of all the others in the sector which I just don't see happening. 🤞
I had hoped today. Bit of luck RNS tomorrow morning before the capital markets days.
Any idea when the trading update will be out?
I think only once the FCA has decided can admission be discussed as only then it will be clear what he's liable for. Based on this settlement its clear he is accepting the claim was valid therefor he was at fault.
I assume the FCA will fine him directly rather than the company as he is to blame.
I'm sure from Minto's perspective this would also be his preference as his has a large stake in the company and the fine would be minor compared to SP drop (and potential rise when he takes the hit)
Is it just me that's thinking that as far as REVB are concerned then he has got off really lightly. Instalment payments till 2029? and no admission of liability. Should have waited until after the FCA had vetted out their punishment on RevB and hopefully him. I do though agree though that we are now ticking off the legacy issues one by one.
They didn't lose their cash by Revb going into admin, and weren't forced to sell at the price they did, it was entirely their choice.
Personally I think it is (and has always been) in the long grass. The company confirmed it has not even begun any legal proceedings. It is the responsibility of the buyer to do their own DD. How many instances have we seen anything successful come out from threats like this. I personally can't think of any.
They are "looking forward to providing an update on strategy at the CMD". This is what I personally think will start the rerate. Not long to go to see how this plays out.
We just need to bat this latest claim into the long grass then I think the market may react positively. A good capital day and we're off.
Another legacy issue sorted. With a bit of luck this is the week the share price starts moving back to a decent level.
Anybody going that might feedback a summary of what's been said. Unfortunately I'm in another place and occupied at the time.
Will check the website later though if nobody is going.
With the CMD now confirmed, I wanted to share a few personal thoughts:
1) Are they really going to host a CMD without updating on trading? Personally I think if you don't then what are you talking about at the CMD. Therefore I am going to assume they will update the market before or on the day
2) Revb went from single digit EBITDA to guiding the market towards low double digit EBITDA. The trend at that point was clearly higher, going into their peak q4 period
3) 1H 2023 margins improved YoY 8%, standing at ~49.4%
4) EBITDA margins expected to improve FY 2024/2025 (remembering their full year in Feb). Can they get to 8%+ margins with say £215m sales? Ill let people do their own analysis, but using even conservative numbers, assuming the business is even flat in terms of sales, you cant see how this is not trading cheap
5) Net debt improved from 1H to the Nov update. In Nov it stood at £19.7. Fully expecting this to come down further
6) New management team is very experienced in the sector
7) The comp has got to be Warpaint. Revb trades circa 0.5x sales and 8x EBITDA. Warpaint trades on 3x sales and 13.8x EBITDA, yet it has half the revenue.
My personal view is that this could be on the verge of a positive rerate if the trading update is inline / good with management guidance and FY 2024 / 2025 guidance comes in strong.
Worth nothing from what I can see at least, no brokers cover this stock. I think you will get a few brokers covering in this name post the FY / CMD next month. Interest is little in the name today, fully expecting this to change over the next few weeks.
All just my opinions.
Agreed, seems a bit petty on their behalf crying because they lost money investing in the AIM market.
This one is now all about their upcoming presentation day and next set of results. By all accounts if social media is anything to go by things are looking positive.
Oculus I get where Chrysalis are coming from but these are meant to be two seasoned Fund managers. How on earth could they have invested £45 Million pounds without even so much as a stop loss and to then let the share price drop 90% before cashing out. I suspect they are attempting to cover their own backs from client cliams.
They could have hit the sell button at any time in between just like anyone else, so to blame it all on REVB without an element of personal responsibility is beyond me. I certainly wouldn't be investing anything with them after that article and the publicity of a claim against REVB would probably do them more harm than good. Just where were the controls? Where was their hedge?
Not saying that they don't have a claim and they might get something back as there was serious wrong doing by the some of the previous individual(s) but it won't get anywhere near £39.7M. Their claim though would be far better served against the individual(s) responsible rather than what is a new Board of Directors.
In any case our BoD should be resolving any such actions or diverting them to the culprits and certainly prior to settling anything with Mr Minto.
Surely if Chrysalis has a case for claiming here then so does every other person invested here at the time?
Possibly they'd get the ruling that that's what you get for investing in AIM?
If they'd only held they'd be 5 million better off as we speak.
Sore losers.
Taken from the article 404x posted below.
Revolution Beauty Group plc ("Revolution Beauty" or "REVB")
Having updated the market positively on 26th May 2022, Revolution Beauty released a disappointing trading update on 2nd August 2022 which downgraded revenue and EBITDA guidance.
Following this trading update, Revolution Beauty then released another statement which said that BDO, the company's auditor, had written to the Board and identified 'a number of serious concerns that had arisen during the course of its work on the FY22 audit. This included the Group's ability to provide sufficient and accurate evidence in respect of a number of keys audit areas and the validity of certain commercial arrangements entered into by the Company'.
The board of Revolution Beauty has subsequently appointed Macfarlanes LLP and Forensic Risk Alliance to undertake an independent investigation into the matters raised by BDO and any other matters that may become relevant during their review. The initial findings of this investigation were announced on 13 January 2023 and the Board and Investment Adviser are considering how best to proceed.
Chrysalis disposed of its entire holding in Revolution Beauty Group post period end in of off-market transaction for £5 million, which compares to the period end carrying value of nil.
Chrysalis first referred to taking out legal action against Revb a year ago
https://www.londonstockexchange.com/news-article/CHRY/annual-results/15816681
Should a claim of this size not be the subject of an RNS? Rather then be released via the media.
Thank you, much appreciated.
Not good and it also shows how difficult it is to make money given the performance of their investments especially given all their resources. Thanks for flagging maybe a smaller long term hold for me at the moment. Still think it’s a great prospect.
Chrysalis turns ugly against Revolution Beauty as it looks to win continuation vote
The growth capital fund considers legal action against the failed make-up provider as it outlines its capital allocation policy ahead of a continuation vote by shareholders in March.
Kathleen Gallagher
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KATHLEEN GALLAGHER
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Chrysalis (CHRY) flagged its maturing portfolio, refined a capital return policy and said it may take legal action against troubled make-up company Revolution Beauty as it sought to prove its worth to investors ahead of a critical continuation vote.
In the 12 months to the end of September, growth capital trust Chrysalis reported that its underlying portfolio had dropped 8.9% to 134.65p largely driven by currency movements, non-asset related costs and decline in valuations of Smart Pensions, Graphcore, Deep Instinct and Sorted.
However, performance improved at the end of the year as to the end of December the net asset value (NAV) was 143.37p, up 6.5% thanks to the revaluation of buy-now-pay-later lender Klarna and fintech Starling Bank.
Fund managers Richard Watts and Nick Williamson, who are set to leave fund manager Jupiter to set up Chrysalis Investment Partners to focus on the running of the company, stressed that most of the portfolio was profitable or expected to be funded to profitability.
They also reiterated their realisation hopes, pointing to Starling, wefox and Klarna, with the CEO of the latter already teasing the market saying the company was ready to IPO. Klarna was valued at £57m at the end of September.
Revolution revolt
Chrysalis’ board and managers are also hoping to prove their reputation should not be judged by a failed investment in Revolution Beauty.
At the end of 2022 the duo fully divested from their position in Revolution, taking a 90% haircut as they took back just £5.7m of the initial £45m investment.
The beauty company’s shares were suspended from trading at the beginning of September 2022 following a failure to publish its audited results. An independent investigation into the company was ordered which revealed a series of questionable business deals, undisclosed loans and unnecessary stockpiling of inventory.
Chrysalis chair Andrew Haining said that the company has ‘potential claims’ for actions of deceit, negligent misstatement and misrepresentation.
‘The original share purchase was made on the basis that information provided to the Company by Revolution prior to the Company’s purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omissions,’ Haining wrote in the results.
Chrysalis issued a formal letter of claim to Revolution on 22 November, which requested a response in 28 days. A response has been received asking for a further 28 days.
The investment company said it ‘is now considering next steps with its
Https://citywire.com/investment-trust-insider/news/chrysalis-turns-ugly-against-revolution-beauty-as-it-looks-to-win-continuation-vote/a2434965
Apologies its behind a wall I cannot access, any board members can post full article?