Member Info for danl90

melon again! ha th comment to PM about how the back office is faster as not needing models in clotehs etc yet the other week it was impossible to imagine that trends can be spotted by social media, designed on a computer in botswana and emailed to Leicester for production! ha and today he's spouting AI. He's such a dinomelon

@mudis - so yeah like i said no secret sauce but it's the integration into this that allows the revenue and profit dynamic I said - there isn't like a magical thing you can see "platform" is more a concept much like the "marketplace" model we are bringing in. This is why rag doesn't get it as he doesn't understand the model and how that model links to value

For the record Hut revenue and profit - same as ours but worth almost £2billion more

"Mudis again 100% correct, Asos, Next, Very already there" - dumb - we smash all of these Next have literally had their platform going a few months but the plan for them is to pivot from previous business to the platform. So why does rag want us to go the opposite way? because he doesn't understand business models, platforms or value

Listen to rag if you want your shares to be worth less

@Pmor - yeah you're right there are lots of platforms and everyone has one. In the same way tesla won't be the only electric car maker in the future and Mudis will be right in a point in time

The point is that there is so much left to go in the story of high street to online and then international that the inflexion point mudis is talking about shouldn't happen for a long time (competitor dependent)

But the fact we have a platform means we are in the crowd that survives into the future. The reason for the high multiple is in part the growth but it's that the market see only a infinite number being in that future and they see boo in that future

If you think the global market is worth x people are saying because of the platofrm or becuase of tesla electric know how they are the big players in the internet/ electric future

This is why wholeslae for boo was always wrong as we want to keep the idea of platform strong and scaling

This isn't pennywise

@mudis - yeah of course no problem

So there doesn't need to be any secret sauce to it, read that article I shared it explains there's a huge advantage on being first. If you tried to set up a platform to rival boo now the cost would be insane
- warehouse costs? - millions
- data platform?- millions (and we have yearssssss of data you'd have 0)
- suppliers? - we have long relationships and they understand how to work to test and repeat
- test and repeat - we can sell to the whole country in 1 go (like rag said topshop would send 10 or so pieces to 30 stores, what if something was hot in Leeds but you sent the samples to Edinburgh? - screwed)
- algos - boo has an algo which looks at test and repeat sales and then predicts who much to order this means we carry a low stock risk and don't tie up loads of NWC (unlike just guessing and it didn't sell or sending it to loads of stores)
- integration with apps - how would you get millions to download an app now? Yeah you might get lucky like Shein did on tik tok but how many other brands will come and go?
- purchasing power - we can order and deliver so much we can do stuff wayyy cheaper than most other UK comps
- infrastructure - all there for next day delivery (or fast in ROW) most others can't get you something for two weeks. Will cost a lot to replicate

Now we have all of the above and we own all of the above and have a wall of data (even rag now admitted this is critical) we can identify or create trends, have the product produced and with the customer all quicker than anyone else. If there's demand for 15,000 nipple tassels boo can have that sorted. Then the competition follow and find no one to buy

It was this platform that meant we smashed loungewear in lockdown 1 as we pivoted so fast

Also now as we grow there are no extra costs, the platform scales and scales. If Next want more sales - might have to sink £million into a store and then staff it and have a tonne of stock in it. What does it cost us to put an extra £100million revenue on? - NOTHING - and this is why platforms are sooooooo worth shouting about as we keep almost every extra penny after a certain point

The overhead base scales and scales so at our 50% GM - lets say we grow 30% next year so £600m extra rev (£300m GM). The majority of that falls right to profit so our profit now of c.£150m goes to £450m - tell me you wouldn't shout about the platform?

@rag well we all know you don’t get it

Shall we be pennywise?

Ceo? Yeah of course he is - melon

@mudis - rather than insult you and say you have this week's dumbest comment (almost knocked rags classic "you won't find it written any where" comment) - try learning

https://innovator.news/the-platform-economy-3c09439b56

Platforms aren't worth anything? Sell this share and go buy something you understand. The platform is a core reason you grow at 40% without it you wouldn't

Is Mudis the melon is disguise?

@mudis - wow! so why does hut which is growing slower than us have an ever more expensive rating?

You're right though theres no reason why the board keep talking about our platform. I guess we should jsut get rid of the board? They have it wrong as they keep talking about the platform

Thats two people now who want to fire JL!!!!

@know I wouldn't say asset stripping other than refining the proposition - sell non-core and then bolt-on other "core" business areas

Further more you don't necessarily need to do bolt-ons rather than just wait for the market to churn (smaller competitors going bust) - capita can just focus on cash and turn the debt to equity - even at 80p you'd get there given the wall of debt?

Sorry all i'm not meaning to push a baseless rumour. I'm more articulating that there is an investment case here for a PE firm which would could see the post covid capita as a platform they can grow

From a PE point of view it has all the angles you'd want and with an ability to wait a little while longer to secure non-core disposals you can see upside

I was asking more an academic question rather than spouting a rumor. I feel that's reasonable

he also thinks i'm this guy - https://twitter.com/danl90

Another thing the melon is wrong about

nah - I find it fun

People need to learn that people like rag are dangerous on this board

- doesn't like mark down pricing
- doesn't like the strategy
- doesn't agree (or believe) in the model we use (he does now start using "platform" but before Christmas he was mocking this)
- wants us to do a whole mix of different revenue streams including wholesale and stores (so like Next - yes Next is worth £10billion but on £700m EBITDA so its worth less - listen to this guy if you want your shares to be worth £2.50)
- can't understand that businesses sometimes have a side revenue its not the main show (Easyjet isn't a competitor as it sells MK perfume on a flight)
- got muddle up by the commission angle of the marketplace
- can't read the RNS's
- thinks ESG is a problem but it was running too fast got us here and no he won't use the marketplace to slow down instead wants a "herculean" task - so basically we make the same mistake twice and more ESG issues!

This guy is a melon

Also to touch on rag the melons point yesterday re ESG. MK (so he's the chairman if can't believe what JL says rag can we believe MK?) said the ESG issue was caused by "growing too fast" etc

So given rag things ESG is the drag (which is likely true) why does he advocate a "herculean" task now? Especially while we are still sorting the core business? Why not support the use of the marketplace and the ability to run that with 0 risk, 0 stock cost or 0 lead time issue. Why? Well he doesn't understand it for 1 and 2 it would take common sense to learn from a previous mistake and well he's a melon

The reason is is that we haven't bought a great deal - yet. yeah there's a fantastic well know British heritage name but that is sort of it and beauty should be a diamond for us (especially as we are putting it through the boohoo warehouse - rag doesn't believe this even though JL said it he thinks we are going to drop it via balloons)

I think a bit that analysts are "skeptical" about is how many of those beauty customers are still there ie in the time since debs hasn't been buying nice new stock have they left and gone to hut and next (next have recently gone a bit further into beauty and have launched a platform which is kind of a hybrid between Hut and Boo tbh - called "total" or something)

So as there is no current year revenue and no forecasts on debs atm the market can't really pay up on it

If we get guidance in feb and further detail of how the site will look the market will give some credibility but atm there's nothing to touch

Personally i agree with you - can PLT and BOO both get 1m each of their current customers to buy true proper brand make up from debs? 100%, we can give access away with the delivery subscription (as it's free through the warehouse platform anyway), also we will be able to offer a great platform to lots of brands who want to get to all those customers

Also the "marketplace" idea and never needing to buy stock means we can get instant market access around the world with 0 capital risk - want to launch debs in brazil? Find 10/15 Brazilian brands and let them all run through debs. This builds up traffic and then the core boo brands add to but instantly in brazil with no capex cost and no stock risk - its potentially very exciting as you do a lot with no risk or build up. You don't need to do "herculean tasks" in a short time frame we can take our time, test markets and products with 0 risk or cost (although rag thinks JL is wrong)

Does any one feel like capita will get takeover? I can't help but feel now ESS is gone there is a reasonable financial base, good contracts and a tonne of investors who would probably take 60p (dare say 55p?)

If was opportunistic, had the cash and an ability to wait 5 - 7 years for the return ie a KKR etc - this has to look good?

The opportunity to take market share on the other side of covid is huge, so many competitors will be weak and on thinner margins.

PE could get some easy wins too by the non-core disposals

I just feel someone has to be running the ruler over this

You should be his lawyer - "but you will not find one mention where it says they wont do this"

You have the eye for detail on these type of things!

Yeah buddy it’s on the investor relations page under “results”

Or just do what rag does and make up your own version. Melon!

No stamp but often the spread is wider. You don’t get a free butty

@rag so why not do what I said and rather than rush a massive task we utilise the partnerships from the marketplace and take our time

We can have the partners plug any gaps so the shop window is full and we get a nice commission income and a boost to customer visits, engagement and data (look at MOONPIG re data! wow) and then we take our time to sort things out

We don't need to build rome in a day we can let partners give them a taste of the rome to come

Business models - learn them and how to leverage them - no need to rush

So Nasdaq isn’t happening just to say (I know that’s not the chat here)

I do think we will go to Debenhams plc or something completely new link Kering is for the Gucci stable of fashion houses

The reason for this is PLT will be the biggest brand either now or next year and this will need to be balanced

No idea what I’d called it - how about Pennywise? Wasn’t that the pinnacle of the fashion days?

I'm always torn on the credit/ loan argument as for so many who use these sensibly they are vital. Should someone want a dress for the weekend but not be paid to the end of the month these are great solutions. I think it's often a minority that ruin a good thing for a few (but i'd like to see the data to pass full judgement)

But someone mentioned a while back about us running the debenhams credit card or credit business. This is why i'd stay a million miles from that - "fast fashion business sells addictive clothes and then profits on the debt!"

STAY WELL AWY PLEASE BOO - ESG & profits remember

@rag why bother going your selective hearing/ reading will kick in any way - or are you the podium speaker?

“It all started long ago at pennywise, the pinnacle of fashion, the good old days...”