Member Info for danl90

I think this deal is very positive. It shows there is clear growth in the skin and hair care (which were hardly in the IPO numbers)

Also if this adds £3m to PBT it’s a very good deal for shareholders as it was bought very cheap

I also like that the cash is only £7m today. Given this floated with £20m cash and has Christmas to come there should be a very healthy cash position come February even after capex

Dumb kalllu statement number 65

How much of THG does Jupiter own? Have a board seat? Would the rev deal be material to THG?

Do you understand anything?

Stick to being sexist you’re better at that

They have a platform which can compete. Also fashion has “brand equity” as you know people won’t be seen dead in Primark clothes

What THG has done with beauty has built a platform which is more efficient and faster to market to retail other products. Augmented by data and sector knowledge which makes the experience personalised. This is part of ten difference to Amazon which just has lots of products. Cult, lookfantastic etc are places people go to learn about beauty and products. As well as great service

This why pet food etc could be disrupted as again “premiumisation” leads to a shopper experience where they want more than just product. They want experience, content and community which is what THG have with Cult and Lookfantastic

It would help if you had some basic business acumen tbh

Hi all slavery is ok because Tony Blair declared a war based on a lie a few years ago!

Wow Kallu you are an awful person. There are innocent people suffering and you’re chalking this up to well “you’re doing something bad but we did something bad so it’s all ok”

This is terrible. Your moral compass is a joke!

Chinese system has taken more out of poverty? Are you including the 15 million that died under mao? Or what about the 1 child policy? And how many Muslims in Xinjing do you want to count?

Buddy take a look in the mirror this is awful for you now!

From the capital markets day we know they capitalise less than peers

I’m not saying there is no moat. The moat is in having a huge platform which is agile and efficient. Which very few businesses have outside of one country (seen post I’ve just wrote for you re revolution)

The point why THG have an advantage is a platform comes with high level of fixed cost which you have to cover. Once you do you’re in promise land as the platform scales and scales

The beauty with THG is that big expensive platform is in essence free (or will be in time) so if THG stayed together the pricing potential would be insane as they would not have to price in overhead

It’s a bit like Primark renting out half the store for a higher rent than they get so the cost of running the store is a lot lower so you make more profit

There's no proof?

https://www.standard.co.uk/news/uk/marr-chinese-ambassador-uighur-muslims-a4502696.html

This is what is happening and what the Chinese gov are like. Honestly buddy you're slime you're so low. Every fashion business in the world is telling us it is happening even Primark

It's not a secret. the issue is you can't just walk into China and take some pics as "proof"

That you're not against this speaks volume about you as a person. Look in the mirror and feel A LOT of shame

Also being sexist on the THG board you're vile

Europe's largest online pet retailer being bought for £3.7bln making £65m EBITDA

This for me should be the THG strategy. Screw spinning stuff off. Keep together. Have ingenuity as a self funding profitable bazooka which THG use to destroy online markets

Beauty done - now it funds it's own M&A with it's own cash flow
Nutrition - a world leading brand. organic growth supported by ingenuity will be great
Pet food/ pet care - fits just like to above. High growth market which is like the above under going "premiumisation"

THG need to make a tough call here and say to softbank. Look just stay with the whole group. You can still have access to Ingenuity all the same but we are now going to destroy pet care

Imagine a business that is no 1 for those three sectors! The three sectors that Private equity are paying through the nose for

This business isn't broken they are just telling the wrong equity story. Needs a re-cut

Scale does enhance earnings. The infrastructure (through automation) is largely a fixed cost. The more revenue you throw in the top the more profit will flow

You can see the benefit of scale in Dermstore where it will go from 2-3% EBITDA business to 8-9% by end of year. This is as the revenue will flow over the infrastructure without extra cost

You also have vertical integration which helps and isn't common in competitors

You get shares in both parts equal the % of the total business you own

There might be slight dilution for you as Beauty will likely raise cash on it's IPO to fund M&A

Also if you read the article a lot of tax chnages came during the trade WAR with the US via Trump. For example Shein not having to pay VAT if it manufactures in China but sell abroad is a purely aggressive economic policy. Nothing to do with Shein at all but just ten Chinese gov making sure they can under cut

As a moral human you should be opposed to this. It should be a free market on a level playing field. But it’s not

And your support of slavery is appalling

Shein raw material is Xinjing cotton made by slaves

Kallu have some pride. Defending slavery as more “efficient” is sickening

This is your lowest. Really awful this fella

I agree it looks a good picture. There’s no doubt here the shares have lost momentum hence the dropping but there is no volume at all so no real seller. As some many shares are locked up any good news will push this up

It certainly isn’t a cheap share but I think as the target relationship hits full steam the 35% growth seen in H1 will be beaten across H2. If you look at the admission doc you see how baldy the top customers performed in FY21 vs FY19 as they were hit by Covid. If you think those customers are now back at full capacity (but more so from the summer which is tail end of H1) then that also adds into the mix. I also think if you compare the Superdrug store estate to target you really see how big the target deal could be!

Then next year bake on a bit more for the boots deal announced

I’d like revenue to be £200m this year and a 10% EBITDA margin. At that level any more growth I think will lead to a position of quite a lot of spare cash and I think this business will be paying divis sooner than expected

It’s an expensive stock but we aren’t paying 160p!

It probably doesn't mean anything but has anyone just seen Umar posted to his insta story the New York stock exchange opening bell

He could be invested in Red Box which is an ipo happening today or something more cryptic?

I don't think rags post is nonsense. Stuff like this is useful for forecast earnings. But this may have already been priced in as management said cotton prices were high

It's just something to keep an eye on and a useful post

Awesome

Can I ask what drove you to invest here?

For reference 27% of boohoo's clothes are made using cotton (although this is now likely higher given the new brands growth and are more likely cotton over poly)

Tbh it's difficult to see if this is good or bad atm as booth boohoo and asos have brought forward Christmas stock so hopefully have locked in lower prices?

Agree but I think this is doubled edged

Short term it looks awful but the more that is opened up about these Chinese firms the more regulation will come and level the playing field

Ultimately this is just another form of Chinese warfare (cripple Western businesses) and we are all sat here watching it happen

Also as EBITDA is a cleaner number it’s easier to adjust for what you believe is underlying performance

I wouldn’t take the HL Calc as likely this is the 12 months just gone figure and therefore out of date, incorrect and un-adjusted

Go through my older posts and I’ve laid out a summary of adj.EBITDA

EV / EBITDA is better metric

EBITDA is the proxy for cash and that’s what you need to see is coming in. EV is is then saying what is the value of the entire business and it’s funding structure

While capex is important for boohoo / asos they are scalable so the EBITDA metric is more appealing as the capex could pause if they just wanted to sweat the current platform