Member Info for Compoundinterest

I predict this gets sold for around 5-10mil or the company goes bankrupt... time is ticking and running out. Cash flow is king now more than ever. Bets are in. NO regrets whichever way u choose cos everyone has had the time to either cash out or take the risk. So stop moaning... you've decided to invest in AIM which is one of the riskiest asset classes on the market so either man up or go home. DYOR, IMO.

Thanks for sharing D-Gee, that's positive considering all the negatives. Although orders "may be" higher in August, the level of discounting at 50% compared to previous year has been much more significant. The entire industry is offering 50-60% discount... in addition to the inflation story... this will definitely have impact on margins. Nevertheless, I would consider this mildly positive news which will extend our cash runway a little bit longer, altho I have no idea by how much longer... I am guessing days, weeks or months...rather than years. IMO, DYOR.

I suspect we are going to get news soon (this month hopefully! For better or worse), I noticed the HR Director has left Eve Sleep and starting a new position. I did not see a new job positioning posted to replace this position. What's ur interpretation of this in relation to the FSP?

The board is delusional to even go ahead with dividend considering the economic climate and difficulties in raising funds in today's capital markets. Sometime next year, they may even need to consider raising funds at a discount if performance remains subdued. Unbelievable. IMO, DYOR.

Hi D-Gee, agree less impacted compared to other industries but one thing u may have missed is transportation cost. Free delivery and free refund. Petrol prices and logistics costs are big part of the costs I wud say. Hopefully we hear some good news soon on the FSP..

DGU- IMO, I think the management has done a good job considering the situation. They have increased sales despite reducing marketing costs significantly YoY. Marketing is much more effective than before. They are heading in the right direction except I think the major problem is more of a macroeconomic and competitive landscape driving discounting and also inflation headwinds which reduces margins. I do think they need to rethink Amazon and try to partner more with retail to increase sales. GLA, IMO.

I'll start. IMO here's my opinion of possibility of outcome:
63% chance it would get taken private by PE
50% chance taken over by a strategic partner
33% rights issue at significant dilution
50% Administration in the next 6 months
It is difficult to speculate as Eve Sleep has not turned a profit yet and the macroeconomy makes it the worst time for Eve Sleep to raise funds, I am not sure if any interested for parties prepared to buyout and invest millions to turnaround Eve Sleep. We would need patient long-term capital which is not so readily available right now... BUT i am hopeful. DYOR, IMO...

Lets all stay on topic guys... not much productivity to talk non-sense and get personal. Lets have a chat about how to make some money £££... what are ur expectations on this FSP such as what the possibilities and the types of interests/deals u think the board have received?

Hi Wyn- thanks for ur question. Always good to learn ur perspective. I think these could be mostly old vacancies and new. Probably more to replace some staff leaving. I think the board has told HR and the staff to operate business as usual, I believe the average employee may not know the funding situation so they probably have orders to continue doing business as usual as if no funding issues. So you are right... in such situations it can't really be considered as positive.. or negative. I just want to believe it is positive... ;) It's definitely emotional bias...not so good for investing.

Seems they used supply-chain financing inventory/stock to bridge the payment gap between the supplier and customer point of sale. They will be actively using those facilities to improve cash flow. Could the service provider stop offering their short-term loans as Eve is now high risk, I guess they could in which cash they would have to pay back those loans. However, if Eve Sleep survives then they wud lose a important customer so I guess they are also currently taking risks to loan Eve the money. IMO, DYOR.

Nice one D-G.
Further good news. Two additional job openings: E-commerce Specialist and Operations Specialist. Total 6 job openings... https://app.beapplied.com/org/1264/eve-sleep

Does that imply the board is confident funding will be secured?! If this was about to go into administration, why on earth wud u be recruiting now... GLA, IMO, DYOR.

I topped up based on these 4 job ads.
AND
"Board receiving a number of indicative expressions of interest."
- "a small number currently being facilitated in their due diligence".
Absolute gamble based on high risks in hope of high return... am I delusional. We shall see.

4 Job openings - two of which posted on 21st July. One today as copywriter... Does that sound like confidence in the future?
https://app.beapplied.com/org/1264/eve-sleep

The phrase "Cash is King" couldn't be more real than now. I guess Eve Sleep suppliers are now extremely nervous to supply Eve without upfront payments which will only escalate the cashflow problem; so if we see "out of stock", it is possibly for those reasons rather than selling out. They need a deal pretty quickly otherwise supplier's will not trust Eve and nor will the Customers who are buying mattresses without warranty/365 days return. The director Tom Enraght-Moony stepping down at such critical period when shareholders need him the most is a complete cop out... it's defo not a positive sign...

Good luck all holders! This is as risky as it gets... ticking time bomb or count down to takeover or new money? My bets are on DFS taking Eve sleep brand but anyones guess at what price and terms. They may completely strip the company and get rid of all employees to retain the brand only for exclusive sales via DFS channels. It seems Eve will be choosing between bad and worse offers. Alternatively is PE investment which I don't think they will get 10m+ for the company may be 5m + commitments to invest further 10m in Eve sleep so total 15m commitments may be? Or worse option for fund raising which is also possible is a very significant dilution... for example raise 10m at discounted prices which will save the company but wipe out existing shareholders. Hopefully they do look out for current shareholders and not just for saving their own job...

Wyn- if u had a million shares what wud u do now at this stage? Hold, Buy or sell?

Disaster... Market Cap touching 1.5million... No more expensive than a 2 bed house in Central London....ridiculous. Can you believe this company has raised and invested over 60million of shareholders money. Now worthless.

Greg, I've been following this board for a while and I doubt very much Wyn and D-Geeman are the same people. They both provide meaningful input to this board. Why don't u share some valuable information rather than criticise others?

What's the point of listing ideas for Eve to cut overheads? Do you plan to email the team? But given the circumstances, I am sure management team at Eve Sleep would know best what to cut or not cut. It is their job. My main job as an a shareholder is to either trust or not trust their strategic hence buy or sell the shares so not sure how it will influence or chance anything.

I saw on Linkedin CC reposted a job vacancy recently, that sounds like confidence to me given the situation. IMO, I would of thought given the FSP status and cash levels, recruitment would be halted until further funding is confirmed. Do we have interested parties? Fingers crossed. IMO, DYOR.

Well said Wyn, if only I could be as objective as you... it seems much easier to react emotionally which usually leads to worse outcomes. Seems to be more effective in the long-term if invest in a systematic and disciplined way.

It is now all down to LUCK... to see if any buyers see the future potential in the brand and whether it can add value to their portfolio. I think the best outcome is if DFS, a retailer who needs stronger online bed brand or PE to take it over. But what are the chances?