The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Taken from Boohoo's end of year accounts. Nice numbers for REVB if they are accurate.. £11.3m profit after tax for H2. Makes REVB current market cap look cheap imo.
"The table below provides the summarised profit and loss and balance sheet for REVB. As at the date of publishing these financial statements REVB's results for the period 18th July 2023 to 29 February 2024 have not been publicly disclosed by REVB and the audit of REVB's financial statements for the year ended 29 February 2024 has begun but not been completed by REVB's auditors. The group has reviewed analyst notes prepared by REVB's NOMAD, Liberum dated 27 March 2024, the management accounts of REVB for the period ending 29 February 2024 and post year end RNS notes published by REVB. These estimated results have been amended to reflect adjustments made by the group when using the equity method, including fair value adjustments and modifications for differences in accounting policy"
Sales (for the period 18/07/2023 - 29/02/2024)
£122.3m
Profit after tax (for the period 18/07/2023 - 29/02/2024)
£11.3m
Group share in %
27.13%
Group share in £ million (for the period 18/07/2023 - 29/02/2024)
3.1m
Must work for them or has a short position. Clearly doesn't understand the business. Boohoo are significantly up on their investment and have installed their own people onto the board to propel growth. They weren't invested at IPO and even if so they would essentially be launching a case to then defend themselves!
Nobody forced them to sell and incur the losses they have. That was their choice, and if they had held, their their losses would have been far less today. Obviously we don't know the full details as to what they feel substatiates their claim, but I don't see what the grounds are when you sold by choice rather than being forced.
Warpaint (w7l) released a very positive trading update yesterday so REVB benefitted from this.
The article fails to mention 2 key points.
1. BDO contributed to the previous audit delay due to their understaffing and lack of resource.
2. BDO were not asked to take part in the audit tender, most likely as a result of the above.
I see this as another step towards moving on from the issues of the past.
It will take some time to see results from the new teams strategy, it won't be overnight, but the business looks to be doing the right things.
Minto was also sat in the centre of the room. Notice his reaction to the last question. Seems to find it all amusing
They seem to be more focussed than before and the new team seem highly experienced. They said they expect revenue to fall near term as they exit low margin non core business. The business seems to be following a typical turnaround pattern. They are now at the stage of being stable and returning to growth and I think the share price will lag until we see solid results and are on a clear upward trajectory, at that point I'd expect institutional investors to buy in. Until then I think the share price will sit in a range, I'd guess 25 to 35p. I still think this undervalues the business, but investors understandably will wait to see results.
Video recording is now online
His wife is also now a director at Carbon Theory alongside other ex Revolution colleagues. I've noticed Carbon Theory appearing in some of the same distributors as Revolution. Free to do whatever now the settlement agreement is signed.
Must be some serious video editing happening!!
Currently trading on 7.5x EBITDA. Undervalued as we speak.
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.
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.
There should be a trading update soon. Something positive for the institutional investors to digest prior to the capital market event.
No not one reply. Retail investors do not appear to be of interest at the moment. Hopefully the business is still growing and we will get an update soon. It was always the concern when Boohoo took control of the board.
They did also say January, but maybe they meant 2025!
Boohoo will be kept fully up to date, that's all that seems to matter!
UK retail sales data shows decline -3.2% in December versus Card Factory store revenue growth +7.8%. That's good performance.
Regarding the national minimum wage increase, Card are well placed to deal with this imo. There wage bill last year was £138m. Let's assume they apply a 10% wage increase to the entire wage bill, this would equate to £13.8m wage expense increase. On at least £476m turnover, they would need to raise prices around 3% across the board to cover this. In other words increase the price of a card from £1.50 to £1.55, hardly noticeable to the consumer.
Card have the advantage of supplying low cost products in high volume, so can pass price increases minimally per unit. Or as they did last year, via targeted price increases.
I'm still bullish on Card however note the potential headwinds. Once the dividend is re-introduced (whenever that may be), this share should garner more interest from investors and re-rate.
Nice. Whereabouts has this been confirmed?