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Your input here is irrelevant and unwanted 5085. Casting insinuations and calling someone 'scum' is none too smart.
Tradey: it's a bulletin board of which you're an equal member. You're pompousness has no limits -- no one has authority to require another poster to be 'accountable'!
I thought the rate-rise coupled with the AGM could precipitate a sharp market reaction today, along with boardroom shenanigans. It was an opinion, speculative, just like your 'I guess'. It didn't turn out that way and so my prediction was, quite simply, wrong. Why make such a fuss of it? Don't let it bother you.
So little tradey, you're allowed your guess and to have unsubstantiated opinions about Boo's financial performance? But you've nearly worn out the report button for poor Pedro who's done exactly the same in offering opinions and guesses about the SP.
What gives mate? I thought you had degrees and A-levels, but such a plain inconsistency escapes you. Or you can see it, but have some delusion that you and you alone should have these special privileges (but they should be denied to anyone else)?
I'd claim no expertise in psychiatry, so happy to be corrected, but that's some blend narcissism, psychopathy and megalomania. Standard Bond villain trope really. Bet you were planning world domination, along with the ducks and the squirrels (assuming they're still talking to you), funded from ya brilliant investments.
'I'd guess that what they are signalling is that at the very least the expectation is to be at the top of guidance and maybe an improvement at the half year.'
Bless! He's managed to concoct something from the update and immediately present it as a fact. Boo said nothing about being at the 'top of guidance' or possible a half-year 'improvement' on that expectation.
Perfect demonstration of what he's done again and again, all without a scintilla of self-awareness of those misleading flaws. Needs a warning triangle on his posts, especially so the inexperienced can be suitably wary and not get caught up in his boundless arrogance & self-professed expertise at investing.
they've been making net losses lately, so all they need to do is reduce those net losses to satisfy the 'return to profitable growth' claim. 'profitable growth' is weird terminology which is open to being p****d differently.
unfortunately this is quite typical of what boo does. it's not clever - the market and investors who don't worship at the boo altar see through it.
"...just reinforcing the truth."
Truth stands on its own. It doesn't need reinforcement. Propaganda, in contrast, needs continuous buttressing if it's to persist.
I suppose that's chicanery to be expected from marketing/advertising types.
If he wants it, he'll be hoping it drops a fair bit further. Then he can make a low-ball offer in the hope that the majority of holders are desperate enough they'll accept it, simply as an exit. Those that were ramping this in the £3's and £4's - assuming they were also buying - look quite sunk.
Your welcome copper. But your insights are hopeless from what I've seen (dividends in three years, which you said here...in 2020; unlikely to go below £3; impossible for it to go below 150p; abusing and insulting anyone who suggested 50p was possible, etc., etc.).
Perhaps talk out your worries & fears with the squirrels and ducks; although on second thoughts, maybe not - that's not fair on them.
Mike will end up getting this for pennies. It's what he's good at. Boo blunder from one thing straight into another. Wouldn't surprise me if tomorrow is the last straw that triggers some sort of mass change or capitulation.
I remember Debenhams - he got burnt along with all the other small RIs. It's hardly some undiluted positive omen when he turns up; contrary to how many here want to wishfully think about it and portray as such (same goes on Asc too).
Neither Boo or Asc are likely to fly until the underlying situation for online fast-fashion improves. They'll still got a tough 12 months to endure before it might start to get better externally; depends what shape the businesses are in nearer that stage before the market might see them as worth a lot more.
Hi Newby12 - appreciate your detailed response and workings. I intended to try something similar to what you've already done in working backwards to come up with an estimated value. Like you say, it only would need to be just above zero for the statement of 'return to profitability' to be valid. Although I'd still have to question it somewhat since to me, profit is what's left after interest and tax, and depreciation and amortisation have been charged off the income statement. It really would have been good to see a balance sheet (even a condensed one) too for a picture of the new capital structure and position.
I think what they're claiming is likely the flattering perspective on the figure. Companies all normally do that to some degree; but I'm surprised how quickly market sentiment has sprang back here when this is the same BoD that a only a few weeks ago said no need for new cash at results, followed by a cash raise a few days later. Trust is hard won and easy lost; and usually a lot harder to claw back than this.
I remain cautious that this is a relief rally and it'll run out of steam.
If they're 'returning to profit', why not actually show a proper earnings statement? What is 'adjusted EBIT'? Far too much elliptical circularity for me.
Only good thing in the update, is that there's apparently no immediate disaster impending, no cash call, that sorta thing. That might be enough for a bit of a relief rally in the market, and of course retail mugs will pile in having seen '£20mn' profit figure in the narrative being bandied about.
But once the froth blows off, I don't see there was anything in those results to warrant a re-rate and I don't think the SP has finished its time at these levels yet.
Perhaps they'll omit it this year because they were expecting first half revenues to be quite a bit down YoY. Nothing would be helped in repeating that to the market, if nothing's changed for the better (which seems very unlikely given the macro + the recent business performance).
Agree with that Pedro. Those things are much more the relevant metrics now. Real revenues declined by about 20% in just a year. There's no convincing explanation for that, other than customers are moving away from spending with Boo. Inflation and cost of living squeeze are going no where, and for many these will yet to have really bitten yet. But that's to come and Boo don't look like they can weather that well.
On the SP at this level: if ASOS's report tomorrow is iffy in the slightest, Boo's vulnerable to visiting the 20s.
It's impossible to know how much, if any, of the RCF has been spent. The last balance sheet released was dated 28th Feb 2023 and on that day, the RCF was fully drawn down but the equivalent cash value was available to the business.
In the three and a half months since then, no outsider knows how much has been used, or not; nor can anyone know if any of the revolver has been repaid. Boo has been coy about the terms and costs of the RCF, along with any associated covenants. I do hope they display more prudence with the use of this cash than they have with spending retained earnings.