Member Info for danl90

@ration. Agree the return of ESG funds is huge!

Someone mentioned this a few weeks back but every time I look on there pretty much everything is either sold out or selling like hot cakes!

For me KM, which I believe is shooting the lights out from the website, will be hugely accretive as this will be the true first example where boo have taken a business outside of their expertise and transitioned it from physical stores into pure online. Those coats at I imagine rather handsome margins are passing through our warehouses and logistics at hardly an extra penny of cost

Add this to your list of things to get excited about!

@rag. Well it’s not odd is it? In admin they have to run the business as profitably as possible. That’s the difference between an admin and a straight liquidation.

At the moment there are offers on the table but nothing concrete. Also if those offers are below what the admin seems fair value they can turn them down as they may see more value in running it (as admin protects you from creditors)

I also guess in order to protect the company’s reputation they have to keep it going. If the admins purposefully damage the brand, relationships etc they haven’t done their job correctly

In the admin they can trade for a year and then try to extend

I said £1 in the £1 so that’s full price

The short term on what happens to straighten out the current situation is just noise. It’s getting topshop to be a pure e-tail offer via the boo scalable platform is the value and that will take a period of integration. At that point there will be no wholesale etc

It is if you trade on leverage!

On the instant benefits point. If there are goods ready to go the admins will control that so they will likely want the revenue from it. If boo want it they will likely pay close to a £1 in a £1 as for the admin it’s as good as cash and their job is to collect as much cash as possible

@rag any wholesale revenue that might come in from current orders might go to the admin or boo it depends is we buy the current stock.

My point is that medium long term boo will not wholesale anything (other than asos and amazon again as these are premium online real estate). Yes it matters where the revenue comes from as it’s about the value of that revenue

At present every £1 of profit we generate is worth c.£45 of value. Wholesalers and normal high st retail is worth c. 8 - 12 so we don’t want to dilute our current multiple and story.

This is a listed business (or similar with private equity) it’s not about revenue for revenues sake like a family owned business might be. It’s about creating a story and investors awarding value to that story.

I don’t as I don’t even know how reliable the £160m number is. But yeah advancing our online strategy is the only way to keep our multiple and make this deal value accretive

If we can add another £16m to £20m just from Topshop, grow at 20% next year and keep the multiple - this could get rather exciting!

@Ration I agree on the below but full fat £40m profit number includes wholesale and stores which won’t be valued at x45

Apparently (someone posted here but no direct source) online revenue was £160m at Topshop & Topman so at boo’s EBITDA margin we should be using c.£16m

Then as you say growth and synergies on top. But we can’t dilute the equity story with wholesale etc

Because the guardian are in for boohoo. They don’t want to do honest journalism they want to go for boo

It was guardian who published that one random story in the middle of the initial story that caused the one day dip. But I bagged a load so all good!

Every time I use their website it asks me to pay and I certainly never will

I think there’s a bit of confusion about PKF being 7th largest firm in the U.K. they aren’t. They are 7th in terms of listed audits but they are actually 11th biggest

Even then our auditors are PKF little John which is one branch of PKF as PKF was bought by BDO. The new PKF is basically three small top 20 and less firms who banded together

So essentially a tiny firm called PKF Littlejohn is doing our audit and they will be able to ask for help from the other U.K. arms of PKF but they are largely separate businesses flying under the same banner (they will probably merge one day)

We were never due a rise on the auditor. It’s just getting an auditor there is nothing special in it

The reason the shares fell when PWC left was not that that left us without an auditor but rather “what had they seen from the inside that now made them want to step away?”. That other firms then passing on boo was just further fuel that those in the industry knew something was odd

Glencore

Share are £2.30. Copper is c.8,000 a tonne. Last time copper was that high shares were c.£3.50

Market isn't buying a Glencore produces coal so now doesn't sit in ESG funds or the sovereign wealth funds

It was paying a 16p divi with copper at 6,000 a tonne. So given the huge surge in profitability debt will disappear and the divi will come back and some!

Its other core metals are also well placed

@TCM but this can be stored and will have been bought in advance. The business I work for has held double stock levels since the Brexit vote this will be the same for all big business.

A lot less of an issue than being able to sell

No it won't be!

I think they have moved stock to the US in advance as if you go on the boo or plt website their are items on one website and not on the other and vice versa

Quicker delivery to the US is the way to win

@matty. Ok so why get all excited and post what Jefferies have to say when you'd be aware its biased?

Me thinks you didn't know but it's fine

@Mattyboy just an FYI but Jefferies are our house broker they will always spin positive. It's literally their job

The lady from episode 1 who tried to sign Molly Mae is now our CEO of Misspap

Yeah Missguided is having a good year but the younger generation are tik tok and we aren’t doing well on there!

PKF is a nobody audit firm. This isn’t even the “real” PKF as that was bought by BDO. This is basically three former top 20 firms that banded together.

This isn’t a great step. But hopefully a short term thing and in a few years EY or another large firm will take us

PKF won’t cope with our international growth

Another lockdown isn’t good for boohoo. We need people out buying dresses

We won’t hit the growth needed with people not having a need for clothing

Hut has twice smashed expectations this year as people continue to buy gym items and make up but half of our product range is surplus to requirement in the U.K.

Thankfully we can get the dresses sold in the US and Europe