Help please15 Oct 2018 11:11
I am not an investor in this company, but I am a little bit intrigued by some numbers in the 2014 admission document. Perhaps someone could shed some light on my questions?
P16. "Stores are typically profitable from the first month with average weekly sales of £14,000" 138 stores at IPO which I believe equates to annual sales of £100,464,000 or £83,720,000 pre vat.
P20. "The Group estimates that it serves 170,000 customers per week in stores. Average spend per head across the Group varies throughout the day and across each of the brands but overall store average spend per head is approximately £8.84." Thus advised sales of (170k X £8.84 X 52) total of £78,154,600 or £65,121,333 pre vat.
Within a few hundred words or so, one sales figure appears to be some 29% higher than the other.
P31. Revenue (prior to cost of sales) £60,112,000. Shouldn't the revenue figure be a little bit closer to one of the above figures, or even the same?
In the light of what has come out recently, should these variances have been a red flag or are they acceptable in an admission document?