Member Info for Aimtrader1

I think its fair to assume you're buying a business with c.25m of annual revenue. Perhaps they'll come in slightly lighter than that in 2022 but not a million miles off. Remember they were lapping lockdowns in Q1 and the comps get easier from May onwards. So probably not right to push the -15% through full year. Even if you do push it through full year as cost of living pressures increase to counter then you're still at c.23m during these challenging times.

topline growth going to be a challenge for many. That's why they should acquire Eve and add 25m of revenue to the books ;) Hoping we hear this week with an update on how the process is going. I understand that they are working at speed to try and get the right outcome. Fingers crossed.

no probs Wyn - have a good weekend

For what it's worth I don't want the business to go down the plan B route. Not sure how much value you could attribute to a small player, not growing, generating maybe 0.5m profit per annum. I doubt it would be much more than the current market cap. My preference is that they sell the business and in the right hands see the ambition realised. This is where I believe they will end up. I'm purely saying that a plan B option (in my opinion) is possible and will be being explored if a bidder doesn't come forward.

Wyn - I read it as 'in order to fulfill the ambition of being a global sleep wellness retailer they need more investment' - scaling the operation right back in order to eke out a small profit isn't the ambition but in my opinion could be doable as a plan B option. This is another example of how you make an assumption based on what you've read (fine - we all do) but then goes after anyone who has made a different assumption. Time will tell how this plays out.

Will we get an RNS (similar to what Ted Baker did) to say there has been interest and we have short listed a number of parties to go through to the next stage? Or do you think they will wait until they are further down the line with the chosen buyer? If it's the former then the SP could rocket on news. With Ted Baker I think they were updating within about a month and so we could be close. Fingers crossed next week is better !!!!

Wyn - I won't go through your previous comments to pick out the numerous examples of assumptions not based on an RNS. There have been many but I don't have the time. re your question - genuinely no I don't believe they would have triggered plan B at this stage (scaling the operation right back) as the ambition is to try and create something meaningful with scale. If they don't get investment then this is what I believe they'll do. re some of your other questions around 1. organic google rankings (this depends on the site SEO not £ spent), 2. how quickly will sales slide (any sales from paid for advertising will fall to zero but the organic sales would remain) and 3. team size (there will be opportunities to scale back. As a starting point you won't need a team running paid for ads).

Wyn you're continuously making assumptions in your posts but are then quick to pickup on others for doing the same just because is a contrary view. let it go. I for one also believe that the business could be made profitable by switching off the marketing taps and reducing the team size. It wouldn't be a business with scale/probably wouldn't be growing but would be generating cash. Just look at the % of website traffic that's organic. From this you can feel for what sales might be if you switched the marketing off. You'd already be close to breakeven at this point and that's before reducing other costs like team size/office etc. I'm not saying this is the answer / ambition - it's not!! But it's very possible to do.

great news about the month on month increase DG. thanks for the update. Let us know when you know on web traffic stats.

That's a difficult one to answer for DGU I think. Would he provide the cash - probably not. If he had an existing business in the same space and could realise synergy savings from the deal then suddenly looks way more attractive. Almost certainly there is interest in us I think it just comes down to the price.

I'll be holding on now. Accept there is a risk of zero but still hoping we see a 2-3p offer. Possibly wishful thinking but prepared to let it ride nevertheless. DG agree we could see a spike on speculation/if the twitter teams come out to play.

Sorry DG - on those examples I gave they fall just off page 1 for double mattress (organically) but page 1 for king and hybrid among others. They do rank very well on google certainly compared to simba and emma. No idea if CC would stay on in a plan B scenario - would she want to go and make x% of the team redundant? I'm not sure. Hopefully she'd stay on though. In all honesty I'd be surprised if we get to that point. Someone will take us on and I'm just hoping its at a price that's not too bad. I think we have to be realistic about valuation so 'not too bad' might be the best we can hope for ;)

I think plan B will be to scale the operation right back and run with modest profits. All the talk about this not being possible is ridiculous. Last year 26.6m revenue and £11m gross profit after distribution costs. We then had 7m on marketing, 3m on wages and 3m on admin which took us under water. Plan will likely be to turn off most of the marketing and rely on organic sales. Eve rank v well on google (type in double mattress, king mattress, hybrid mattress etc). The other bed in a box firms are nowhere to be seen but Eve are page 1 (the website alone has huge value). Revenue will likely drop to c.15m if they did this (possibly lower) but still leaving c.5-6m gross profit. Wages would drop as a smaller team would be needed. Marketing would drop close to zero. Other costs could also be stripped out. It's very possible to run the business for profit (even in the current climate) but you'd have to accept it will likely be in decline (or flat at best) and wouldn't have any real scale. It feels to me that they've moved early enough to put a plan B into action should plan A (a sale at a satisfactory price) not work out.

Surprised we haven't seen Wyn over at 4D today telling everyone how stupid they've been. That is essentially what he's doing here as the price drops close to 0.

Greg - give it a rest. They are NOT the same poster !!!

Wyn - "I don't doubt that you actually believe what you're saying. Do I believe it? No, sorry."

Meaning

If you repeat a lie often enough you start to believe it to be true.

Wyn - I don't doubt that you actually believe what you're saying. Do I believe it? No, sorry. You're genuinely posting these long messages out the goodness of your heart so that maybe just one person will save their hard earned money. It's seriously laughable. Sorry. I notice that your tone is 'slightly' different on other boards such as HE1 (which is a much higher risk play than Eve for what it's worth).

You are deliberately posting information to cause mischief and trouble. Please stop.
Straight back at you.

haven't been following this convo DGU. Does this mean that if a similar business acquired Eve (lets say DFS who sell mattresses) they could use the 57m of losses to offset future tax? So roughly 11m of savings? If this is the case then this is great news. Even at an 11m purchase price they're effectively getting the business for nothing? Clearly the acquiring business needs to be profitable and so another bed a box company unlike to be a good fit.

Wyn - happy to justify it. As I've said already I think you'll be too active and also too exposed to high risk stocks like he1 and avacta. It's a view and maybe I'm wrong. In terms of why you're spending so much of your time commentating on this stock that you don't own. My view (again just a view) is that you're trying to talk the price down. You might not even realise what you're doing as so ingrained.