Member Info for Bfdinvestor

Downgrade is what it is

I'm more interested in how you apparently know what people were saying four years ago when you joined less than a year ago

Those Spidey skills truly are amazing

Commenting on what you said Spidey.

You must be tired after being on here at 1.30am.

So you joined less than a year ago yet can comment on what happened three or four years ago.

That's quite remarkable.

Just think what you could achieve if you put those. Spidey skills to a positive use.

Strange that spideystreet comments on what people have supposedly said all the way down, yet joined here less than a year ago.

Comical

We should know by tomorrow lunch time how many shares we have got.

I'd expect money will be credited back immediately if we don't get the full amount

Glad you agree with me that the company did not want to use management time looking after it's existing shareholders. That is a conscious choice Day made. This deal will have taken many months to make, looking after existing Share holders would have been a tiny work stream. He didn't want to do it.

It was another of the happy clappers who brought up the point that existing shareholders are in the same boat as new investors. I simply pointed out what a stupid statement it was.

Looking at the volume of shares traded over the past few years, I'd guess that most LTH are in a significant loss situation. The maximum probable high sp in the next five years, given the number of shares in issue, will likely be in the 20to30p range.

Which is great for the likes of Wyloo but not for most PI's

Personally I'll do ok as my average is well lower than that, but that doesn't mean I have to be happy with the approach taken.

Maybe some of you happy clappers should be more open to reasoned debate rather than calling anybody who isn't 100% supportive of Day a bed wetter or a troll.

The retail offer was scheduled to be open until 4pm today. This deal has been months in the making, so existing shareholders could have been seen as a stakeholder, they clearly weren't

It's nonsense to say existing LTH are in the same boat as other Pi's. They clearly aren't as new holders have no existing average.

Are you saying you expect the sp to drop below 4.8p, I'm not sure GGP are expecting that to happen? If not then existing LTH have clearly been disadvantaged

It's on Primary Bid and closes today.

Check with your broker to see if they are participating

HL have set up a corporate instruction

The retail offer was fractional tho wasn't it? It was limited in scale because GGP didn't want to produce a prospectus.

The fact it wasn't limited to existing SH speaks volumes.

There was no reason

Plenty of other companies have limited offers to existing Shareholders.

Don't worry tho, the happy clappers tell you Day has your best interests at heart!

Wyndrum some good points, but it is more than a little misleading to state that we are on the very first part of the trial.

We are far further forward than that, with exceptional results

1.30 in the morning and nothing better to do than post something that has went the sole topic of discussion the whole day.

Would be funny if it wasn't so sad

I've voted in favour

Hexam, do you think it will be a hit on cash for half one or the full year. In half two we will no longer have dual running costs

Jeremy I'd guess there will be people costs and some of the stock will have to be written off i'd guess

Actually not that misleading on the lease side. The vast majority is capex that has already been spent and the article indicates probably £4-7m cash costs, which is less than i was expecting.

If it has been sublet the cash costs may get evened out, who knows.

LYTTLE needs to go

Remember BILL is only here to troll.

The BOD don't get paid whilst any element of the trade finance is outstanding.

Which leads me to think we are months away from a resolution rather than years

This is the meat of the article

Analysts at Peel Hunt, who back the move as boosting Boohoo’s bottom line long term, said the group will likely face ‘modest cash costs of exit on top of the circA £34millillion capex write-off’.

Katie Cousins, equity research analyst for consumer and digital technology at Shore Capital, said: ‘We anticipate that the financial impact of the decision will result in a balance sheet write-down relating to the lease contract for the US which runs until 2032 with a cost of $8million in [2025] and the c.£34million capital investment made into the US [distribution centre].

‘There will also be a one-off exceptional cash cost (assumed at mid-single digits).’

The struggle to break the US

Boohoo has not published detailed performance figures for some time but last year’s annual results demonstrated the difficulty the group has had with maintaining US momentum

The group’s total US sales plummeted 29 per cent to £177.4million in the 12 months to 28 February.

Similarly, rival Asos saw US sales plummet 25 per cent in its first half, reflecting the six months to the end of March.

Analyst at Peel Hunt said Boohoo’s initial decision to launch a direct US distribution centre ‘was based on sales numbers from three years ago’ when the group boasted double-digit US growth with revenues of £450milllion.

The analysts had a Boohoo target price of 75p, but have now placed the group under review.

They added: ‘Volumes are now nothing like what the company originally planned for, and back in the UK the fully automated and highly efficient Sheffield site is running with excess capacity.

‘In addition to the lower volumes, the US product offering is c.60 per cent of the full UK offer, with trials showing an improved sales and conversion from US access to that full range.

‘We believe the duty benefit of pulling out of the US warehouse and the increased cost of distribution into the US from the UK broadly offset each other, whereas the distribution efficiency of running through Sheffield is worth 500-600bps.

‘The other part of the equation is that offering the full UK range into the US is also a significant benefit to sales and conversion.’

And there he goes again......

Sunny, nan just means there is a slight coding error

Strange to see Crawshaw popping up, just to look for another argument.

The balance sheet hit will be one thing. The other unknown is the stock. From the last accounts i think the dual carrying cost was £29m, so it depends how they deal with this.

its a sheet show all round tbh