Member Info for D-Geeman

I suspected you have / had more than me and couldn't see that size of trade today so that makes sense (though you might have starred last week).

I suspect there'll be more short-term gyrations in the SP whatever the eventual outcome – and we've talked of several possible eventual outcomes.

Having considered what I'd buy if I sold eve myself, it'd probably be angle, and that's just continuing to go down too.. This game tests self-confidence in one's own judgement...

Have a good evening anyway :)

Hi dontgive, when you say de-risked all, you 'all out' now? That's a big step. Might be the right thing but I have held on so far. Maybe you've simply reduced..

Unpopular view here I know but when CC said eve were heading to breakeven in the UK I think eve were and she was telling the truth as she saw it. The world changed around the company. In hindsight things done differently could have meant we'd have a bigger bank balance now, which would be rather handy.

We shall see whether I am naive once they give news on what happens next. If things go well then the record will show that I trusted CC all along. If it goes badly, I'll keep my head down.

Hi dontgive,

I’m with HL but I did open a 212 account two years ago to see how they compare. I have stuck with HL but left 50% of my HE1 in 212. 95-97% of my shares are with HL. I wasn’t tempted to move over once I’d tried 212.

212 have a smaller selection of shares available. It doesn’t surprise me. I know people on the Tiziana bb we’re having trouble with accustem spin off shares and move to Nasdaq.

How will it affect eve sp? Less volatility perhaps? If people really want to buy eve shares they may have to open an acc elsewhere. I don’t think it will affect us long term, if we are ltbh. The spread on eve restricts trading anyway.

https://www.thefurnishingreport.com but need a sub to read the articles.

Such as: 'Suitors close in on Eve Sleep as DFS becomes brand's largest retail partner
Eve Sleep says a number of potential suitors have progressed to due diligence stage as the direct-to-consumer and wholesale brand explores a possible sale of the company.'

And: 'Foam merger raises competition concerns and could lead to higher prices
Antitrust regulators in the U.K. have told Carpenter and Recticel to address competition concerns to prevent the proposed takeover of the latter's engineered foam unit by the former from being...'

And: 'OTHER NEWS
European bed group acquires stake in Polish supplier as wholesale arm strikes Simmons deal

Retail group Beter Bed Holding says the acquisition of a stake in a Polish bedding company is part of a plan to vertically integrate its value chain and give it more control over profit margins.'

And all these other people will know eve is for sale.

The marketing costs are falling now because the eve brand is well known (classic pattern according to CC). Might be too late for eve to take advantage of this but a parent company should be well placed to turn a profit immediately if they close the office and run the website with their own team – and quite possibly find jobs for the eve people who want them.

Eve position can be viewed through different prisms by different people. I think that partly explains the volatility. Potential buyers have different prisms too which makes it so hard to predict.

Some weekend reading matter on DFS
https://www.proactiveinvestors.co.uk/companies/news/982189/fevertree-and-dfs-furniture-among-most-likely-takeover-candidates-says-broker-982189.html
I note this: "the medium-term story remains attractive, particularly given the growth angles arising from the Sofology store roll-out and *adjacent category expansion*" (my *'s)

Sofology is still a distinct brand as if DFS did takeover eve I can see that they'd keep it as a separate brand to keep selling in Argos, from the eve website, Dunelm, and France etc.

I know people have said France was an unnecessary drain but from a DFS pov, eve in France could be a very attractive bridgehead for more European expansion. If DFS has a huge proportion of the UK sofa market (the takeover of Sofology had to get permission: 'DFS has been cleared by the Competition and Markets Authority (CMA) to acquire Sofology for £25m.') then might struggle be allowed to buy more UK sofa companies (hence the move into beds too?) but Europe gives it a further arena to make future expansion even though DFS has struggled in with its own stores in the Netherlands and Spain, apparently.

This also popped up on DFS:
https://www.bloomberg.com/news/articles/2022-06-09/dfs-furniture-says-orders-fall-as-uk-shoppers-put-off-purchases so would they hunker down or spend some of their cash to make future growth more likely...

I did get a fast reply from Mark at IR, but only to say he'd have to check. That was before lunch. I now assume it will be next week. This is what Mark wrote back:

'Hi D-G

Let me double check before giving you an answer.

Best

Mark'

(On another subject, looks like my green box strategy towards GP7 has paid dividends today. I'm not even tempted to take a look without a filter. Thanks to those who have stuck up for my posting strategy of attempting to keep people informed and occasionally saying what I feel about eve and why, despite being an almost complete amateur at this sort of thing. Most people – >95% anyway – give an honest opinion on this board even if we sometimes agree then disagree with one another.)

I'll let you know as soon as I hear.

Anyone buying now will also jump-ship when they are 20% or 30% up I'd imagine..

Good morning Mark,

Hope all’s well with you.

I have a query on the RNS issued yesterday and wonder if you can help. Do you know how much of the load facility has been used? I noticed this interpretation in the media and they say it’s all been drawn:

https://ukinvestormagazine.co.uk/aim-movers-tough-consumer-conditions-for-brand-architekts-and-eve-sleep-plus-ex-dividends/
'There was cash of £1.5m at the end of June 2022 and eve Sleep had drawn down £900,000 of working capital facilities. A small number of expressions of interest in the company are undertaking due diligence.’

Anything you can give me in way of clarification would really be appreciated.

All the best,

Thanks Yanis. Has anyone asked IR about this? It'd be nice to know exactly how much.. I can ask if no one has done so yet.

Someone (possibly new) selling eve https://www.mattressnextday.co.uk/eve-sleep

And clarification on the loan being used
https://ukinvestormagazine.co.uk/aim-movers-tough-consumer-conditions-for-brand-architekts-and-eve-sleep-plus-ex-dividends/
'There was cash of £1.5m at the end of June 2022 and eve Sleep had drawn down £900,000 of working capital facilities. A small number of expressions of interest in the company are undertaking due diligence.'

The morphee is made in China and it's conceivably made in a city under covid lockdown, or essential parts come from such a city.

I doubt they make very much on the CBD so perhaps their efforts are better focussed on saving the ship.

I do feel somewhat misled (to say the least) on the balance in the bank if half the money in the bank account came from a loan elsewhere. Still, if it was in the 2021 balance sheet then that's also my fault for not looking more closely.

Maybe they didn't give the bank balance in May because it was pre-cutting times and would have spooked us even more; over a longer time period the burn rate may actually appear better than it was leading into May.

But it does seem as though the worst readings of the FSP RNS of May were true so it can't have been that unclear as some people here spotted the situation correctly.

Of no importance now but still no sign of today's RNS on this LSE page.

Anyone else expecting news sooner rather than later? I'd rather *it* happen before our holidays in August, whatever *IT* is.

2/3 the way through July and 132 TP reviews. At that rate we might 190 reviews and that would be about the same as October 2021 (a month with a bit of a dip admittedly).

It might buy a bit more time if sales carry on at that rate and at the same time as costs are cut by 30%.

Unpopular view here but I still blame Putin, and perhaps Boris Johnson, more than CC and TP, for the position eve are in.

unless there's been a huge fall-out I expect CC could still contact the non-exec for an opinion. The work now is deciding which deal to take. He might not have much else to offer after having given his best opinion on the choices already.

Don’t give, that must’ve been tough. Been thinking the same thing but will wait for some kind of sp lift first. If you lose all your money then you’re out of the game so at least you can put somewhere else if you spot something good.

Regarding the credit facility, what security would even be able to give the bank that they’ll ever be able to pay it back? Maybe CC has assured them that something will get done deal wise.

Reading compound interests post, it seems a grim but fair analysis.

Did they need to update us today?

Was it the Non-Exec's resignation that forced them to provide an update or did they also intend to give us 'a message'? Perhaps the message is that there are genuinely interested parties and it's got to DD stage with some, or that they are hunkering down and expect to be trading through Q4, or - brutally honestly – CC telling us that the money is running out fast and we should leave if we have doubts?

Wyn, it's a gamble isn't it. I'm hanging in but only because I'm well down and leaving just before T/O would be infuriating (for the rest of my life..)

Also, like a personal overdraft, just because you've used it doesn't mean you've used every penny of the facility, nor does it mean you've not paid it back when you have the cash.

If DFS are now the biggest retail partner by revenue they will want eve to be around to honour the warranties on quite a few mattresses. Not that the mattresses fail often but there've been the occasional torn handles on new mattresses.