Member Info for danl90

Not if the debt is just refinanced and there is 6 month payment holiday or covenants are lifted

There is currently £110m of headroom in the current facility - do you think we need more cash than that?

market must have twigged boo are using the wrong type of camera!

£5billion business and it comes down to £200k worth of camera kit

Finally (thanks ginger) someone gets it. This has nothing to do with the amount of EBITDA but purely the low EBITDA. The EBITDA as stores are closed

There is 0 need for a cash call

Ask yourself - how much would i raise?
- what would we do with the cash we raise?
- If the answer is pay off debt what would you do with the mountain of cash you'd be sat on in 12 months time?

Looks very positive

Two “new” divisions to be £2.5bln of revenue so certainly Capita will be a smaller beast but I think we all agree a positive. Maybe it’s in this RNS and I’ve missed it (reading on phone) but are the margins set out for the new divisions?

Also disposals looks positive and hopefully selling now we will get some punchy valuations (ESS went cheap as chips in my view but likely a timing point)

How is my maths a shocker? I have no clue of what amounts your paid for any shares or what your gains were. but either way if you double bagged on asos to buy your current lot of boohoo then i'm not too far off (but caveat is that i don't know your boo buy in price) - so yeah you had about £30k - £40k starting money to get to where you are now - sad

Boutique IB's don't have partners but i left I IB I now do have equity in the business I work for

So i answered yours so why not answer mine?

How much expertise will boo have in homewear?
Why do none of the investors/ ceos/ funds/ analysts ask about the cameras?
Do you know think it's quite smart that for doing nothing, no matter the trend i eat 15% of your hard work?
What would the NWC considerations be vs a marketplace model and the asos reseller model? I mean you're such a ceo and you think it's just words but I think you'd be clueless

I'm here chatting as it's hilarious educating the dinosaur. THIS ISN'T PENNYWISE

So you can buy the car because you doubled on asos but if you'd hadn't have gambled (as you can't value a company - ceo right?) then actually you'd be quite far off!

This is easy
1) Cords doesn't matter for me. I let you worry about that I just eat 15% of your lunch with no capex or stock risk. So yeah just let me know what you want to sell, take the pics. Send this all over and I'll pop on the marketplace and take my 15%

2) Not having shares or having them isn't linked to how well you understand something. That's very silly. Goldman Sachs don't have equity in businesses yet they advise on M&A and advise boards on value creation each day for an amount of money you'd find obscene - as I said yesterday Jefferies are advising boo atm

Also your total number of shares means your portfolio is only marginally more than mine. That's a bit sad for 30 years hard work you don't have too much to show. Particularly as you doubled on asos. Take that out and the current boo gain and you had what £30k? ha My last bonus in banking was more than that!

3) requires "u/S of the trade and its nuances" - really? So what is boo's understanding for beauty? or home wear? Answer NONE - yet boo will be one of the biggest home wear companies in the UK and they won't even touch a lamp

So again rag no I don't need to know the "u/S of the trade and its nuances" I can just leave that to you and have the marketplace platform eat 15% of your lunch

Starting to make sense? The platform lets you leverage of others hard work (uber don't drive or even own a taxi -it's the same idea here)

I let you worry about cords
I let you worry about stock levels
I let you worry about sizing
I let you worry about pictures

I just wait for the 15% to come rolling in

Makes sense to be on Zalando as it's a prime internet site (before Rag says I said I'd be on the prime internet real estate always it's general wholesale i'd stay away from)

Zalando also likely helps with teh brexit mess atm so worth it just for that atm

danl90 - focused fund managers, don't you mean focused fees, percentages or whatever money we can make out of it. What's the most we can get for this? Let's try £105m, sounds a good figure to me.

Focused fund managers now there's a laugh if ever there was one.

Ok people there you full quote. It’s full of errors

The funds charging fees would be buyers of stock. So why would they want the most?
Explain how they all got comfortable with £105m as a price?
Yes the sellers will try and get the price as high as possible but how do the buyers feel ok with that price?

Also focused fund managers there’s a laugh. Well what do you these guys do to earn their money? You were one of the biggest advocates about Morgan Stanley when they were buying up boo

Honestly you’re clueless. I’ll wait for you to copy and paste something

@people - honestly buddy clueless - ok so you're point is the seller tries to get the best price that's true. But how buying fund agree that's a fair price to pay?

@rag you seen the slides? How come you always go quite when it comes to saying who's taking the piccys? Again the platform boys don't care - we just busy collecting your lunch money

Late night deciding what colour yellow? Ahhh shame, oh btw 15% please

https://www.nextplc.co.uk/~/media/Files/N/Next-PLC-V2/documents/reports-and-presentations/2020/next-results-presentation-aw19.pdf

Slide 72/ 73 rag - who’s taking the piccys? It’s not next

The platform guys don’t need to care about the camera fella. We don’t even need to know how you make the clothes. How many times you tossed and turned over if the jumper should be red or maroon

The platform guys just eat your lunch. But nice camera

@rag again buddy look at the next total platform slides. Next don’t care about the photos etc. They distinctly put that job with the third party. A third party who’s business is worth 5x - 12x

Next are telling you knock yourself out. We will next a free lunch via commission

Do you ever look at the slides I share? Middle management deal with the photos etc buddy

Another ride!

Go on rag what's your thoughts on the valuation? There's no "was £4 before" in this instance so I wonder how everyone (including the number focused fund managers) agreed £105m?

You're right rag I now know about pictures, models tattoo and jean cuts. I think when you're fly on the wall on the boohoo board room these are also where JL and MK are most concerned

What does he think in terms of the valuation of £105m? Better asking the wall

Apparently all you need for fashion shares is knowledge of jean cuts

“Boohoo’s market cap is about $3bln”

@people you will literally copy and paste any old rubbish! Wheres your “learning?”

Can’t even get the market cap right!

You think 280? Wow even I’d buy some at that price. Ride back to results before the boohoo brand slow down is announced

@people on the rishi point. Chancellor announced £6000 per non essential store reopening. £6000 x 1,000 stores is £6m - point 1 sorted

“No evidence on Mother’s Day” if you went on card factory mid week they had a big red banner at the top saying “Mother’s Day gifts sold out” - some commented on this earlier in the week if you want to corroborate

Also no evidence it’s a trading issue - trading update in Jan-21. The stores were shut for the huge majority of the year. There has been a global pandemic and non essential retail has been closed. If you look at EBITDA before covid it was £80m. Which would be 1x debt to EBITDA so well below the 2x required by the banks

Like most businesses in the U.K. they aren’t generating revenue as the stores are closed but they are still incurring costs. As I say quite common

Anymore points? They were all fairly easy to answer tbh

Also I’m not saying there isn’t space for brand. There is 10000% but PLT is not Supreme. It isn’t really even trying to be Supreme. Supreme is a hype brand. They want to sell out. It’s part of what creates the trend. PLT want to fulfill all demand and PLT will copy trends not just be a trend

I mean come on you’re the in depth fashion knowledge and you pick supreme here? It’s not really a relevant example of fast fashion or where boohoo is even going or has come from

But as I say what the next left part shows you is that the platform guys let you do you’re creative part. We just steal a commission on every single transaction

The platform is worth billions and your little factory? Well you might get 5x? What if your creativity fails does the platform care? No we plug someone else in and steal a cut from them

It doesn’t matter if the trend is nipple tassels or jumpers the platform gets paid. So no I don’t need to be creative to steal your lunch. That’s the point and why they are so valuable

@rag actually no the platform can help you over come this hence why topshop in part failed as not having a platform stopped it from being able to play its ace

Topshop would rip of catwalk fashion. But then Zara could do this faster. Boohoo can spot or create trends faster still with a data driven test and repeat model. Shein can go even faster (it’s noted they can rip off Zara in 2/3 days)

So they can all get product/ trends and get them out to customers almost instantly. This was my point re the dogtooth vest top all girls liked a few weeks back. There wasn’t one of the platform businesses that didn’t have it and in a variety of colours. Why? As they can spot and recreate a trend of product in days

So they ALWAYS have the right product. Go on Shein or PLT any type of trend is there. And it’s the agility in the platform that allows that. Yeah PLT and Shein can create trends but now they can rip off trends faster than topshop ever could and even faster than Zara! Which was know a king of this

Like I say it’s not me telling you the platform is valuable its JL, it’s the Ceo of Next and it’s the Ceo of Asos. Are they accountants? Please tell me why they are so keen on this?

Also to help you even more here’s some nice pretty pictures from Next to show you what a platform is (as you’re so creative I hope the pretty pictures help)

https://www.nextplc.co.uk/~/media/Files/N/Next-PLC-V2/documents/reports-and-presentations/2020/next-results-presentation-aw19.pdf

Slide 56 is basically the start of Nexts platform and you’ll see website is just a sector along with logistics and everything else I mentioned

Then slide 68 is about the total platform (ie plugging in third party brands the bit you say is soooo hard to do - yet boo planning this (why hold shares if you hate the plan) and M&S just did this with 11 brands)

And again 72 & 73 show you what it is Next will do and what the external brand will do ie all the piccys and provide the product (all the stuff you were worried about) but Next will just provide the platform

So JL/ Simon and Nick arent concerned with the detail you mentioned (grey white or models tattoos) the big boys have invested in their platforms. They are now shouting about them

So how many more quotes from the leaders of your industry do you need? They are all telling you what a platform is? What exactly are you defending now?

Honestly I’m really confused.
A platform makes your shares worth more - good for rag
A platform has helped boo grow and beat slower high street competition - good for rag
A platform strategy is being persuade by all leading fashion aggregators or smaller brands are jumping to partner - good for rag
A platform means boo should win and keep customers and a competitive advantage - good for rag

And yet you 1) don’t think it exists (despite three ceos telling you it does) and 2) you can’t understand it (despite being so creative)

Does JL design for boohoo?

The company doesn’t need more debt or have too much. They are in breach of the debt to EBITDA ratio covenant. When EBITDA returns the ratio will naturally align

In all the business has a £200m facility but only have £90m drawn so that’s why the banks are happy to waive as this isn’t a too much debt issue (they have agreed to lend up to double) it’s just that atm the EBITDA isn’t there

The cov was set in Sep-20 when world was optimistic of no more lockdowns but obvs that was wrong