Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
You missed out this part of the article MT:
“High street sales experienced a 2% year-on-year drop, counteracting a 2.9% surge in online business, with colder, more inclement weather and the school half term having reduced footfall throughout most of the month.”
Free cash flow is defined as:
“Group free cash flow is calculated after working capital, net capital expenditure, adjusting items, tax and financing (prior to debt capital repayments and consideration on acquisitions).”
We can ignore debt capital repayments (net debt neutral) but consideration upon acquisitions needs to be factored in when reconciling from £180m net debt to c. £210m net debt. City AM + Biossance cost approx. £20m, not sure where the other £10m has gone. Maybe MM could check the back of his sofa 👍
That’s quite a blinkered view. There are plenty of legitimate reasons a company would take out debt, and I very much doubt THG would be in the position it currently is without the support of its lending banks.
Anyway, the answer to your concern (presumably re: debt affordability) is as follows:
“Following the Group's strong profit and cash performance, closing net leverage[1] for FY 2023 was c.1.8x, compared to 2.8x for FY 2022. Continued positive momentum into FY 2024 provides confidence of further degearing.“
Well that’s good isn’t it. So a consortium of leading (lending) banks are happy to continue to extend credit to THG, and will be in a privileged position of seeing all sorts of management information as part of ongoing covenant compliance. I’ll save a link to this RNS for the next time someone vaguely suggests “there’s trouble at THG”, / “the SP suggests this is going under” / etc.
Not really, before the SP crashed in Sep/Oct-21 low volume days like this were completely normal.
We’re all just accustomed used to days where Algobots constantly churn the same shares…
Can’t get rid of Standard Listing soon enough
Online retail sales fell by 4.1%… but was weighted by “textile clothing and footwear stores” (-15.1%) and “household goods stores” (-13.0%), don’t think we’re in either category directly (obvs some of our Ingenuity clients are). Poker’s link has all the detail.
“How is it possibly red. there is no news that justifies”
It’s like you’re new to this share Ste2000?!
Only kidding ;) Inflation good, Jaypore good, Tristpilot improvements good, increased headcount at Nutrition production facility good. All of this from the last week or two only!
Not sure why it couldn’t be SoftBank. They were forced sellers back in the day, the loss they made on THG is minuscule in the context of their portfolio, and the only way to see a return on the investment they previously made into THG is to get back in! They recently visited the UK site with a large delegation (a sign of respect apparently). I still remember Masayoshi Son having said they were “building something beautiful” (or words to that effect) around the time of the initial option and collaboration agreement - he clearly has a vision, and vision is hard to set aside.
Not sure about the 75% point, see LR 5.2.8: https://www.handbook.fca.org.uk/handbook/LR/5/2.html