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Circa 58% of shares are not in public hands, circa 78% are registered to investors who declare holdings over 3%. Only leaves 22% kicking about, approx 70m shares. Lots of small investors will hold these.
Let us all join hands and pray that tomorrow Fat Boy Slim over at sports direct Wade's in and stupidly buys more shares,so we can all get out without too much damage
I think people are missing some key points here. This is not a sell. The update is minimal because there is a CMD today. Then you have a FY close in a few days time. There was no update due at this point. Its simply because of the CMD.
New management have cut back on SKU's (this is what has been previously discussed). Why? They are concentrating on the core products and further trying to improve margins here. Spreading yourself thinly for sales alone does NOT equate to profitability. Their strategy is exactly what is needed here.
They have slowly removed all the negatives from the pervious management. RCF now extended. Therefore no issues on that side.
CMD is designed to show the market what the medium term view is. While I agree the near term is very important, if the company is doing say £200m in sales next year (March 2024 onwards) and hits 10% EBITDA margins, you have a business that should be trading nearer 45p. Not down here. Use 8% margins and it is still cheap at these levels.
Say Capex is £5m and £2m in interest and rent. You have a business that is nicely free cash flow positive.
Can't see where the concerns are coming from at this stage.
Believe they will upload after the event. Assume it will be posted this eve.
Did they webcast the CMD - anyone have a link? Don't even have the slides up on the website (or I can't find them).
I'm not going to get excited about EBITDA with this one - I'll want to see actual cash generation.
Revenue slowdown,means any growth is limited..The poor update means fair value for Rev is between 25/28p...They are starting from a low point so growth should be fast for this company..Most other beauty products companies have given upgrades in last few months..l would suggest management is second rate at present..
LSD growth means they lost share in 2023 - not a good luck for a young business. Too many brands, unfocussed, they compete with themselves. Would need a CAGR of 27% over the next seven years to his their £1bn target...I don't see them competing with ELF, Warpaint or mainstream brands, are already losing shelf space at Superdrug.
Currently trading on 7.5x EBITDA. Undervalued as we speak.
A very vague trading update which veiled much mediocrity..Promises of something 6 years ahead is not going to cut it with any professional investors
Share price overreaction to the low single digit turnover growth comment. Investors (more likely traders) selling out and missing the point about rationalisation of lower margin business and focus on better margins. Looks like they have steadied the business over the last year and returned to trading profitably, now reset to focus on profitable sales growth. Playing out like a typical turnaround story now in my view, just need to show some profitable growth going forward for the market to catch on.
Its over to how the II's view the Capital Markets Day.
I like the ambitious targets and targeting the US. Maybe a bit of extra business for THG and their Ingenuity platform who have distribution hubs and manufacturing capabilities in the US. Who knows...
Not exactly shooting the lights out, missed on targets set not that long ago , however, could've been worse.
Revenue miss yes, but that looks like it was a conscious decision to focus on higher margin product. Great result imo - focus is power and we see that in the solid EBITDA outcome...
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.