Member Info for FED1

Hi Bfd,

In answer to your question: "other than the capital markets day what are the promises management have reneged on?"

1) Let's not forget that they failed to deliver previous capital markets day. This was the second failed delivery - by the new mgmt team.

2) I echo Crawshaw/LDLD - releasing shareholder value for everybody - share price has halved.

3) How we went from "we have a credible plan" but cant disclose it yet, to "the business review is still ongoing". The credible plan was announced in September 2024 I believe.

4) Shall I mention how shareholder should just wait for the next period, then the US distribution centre and the automation investment will deliver significant cash returns on previous investments.

5) Or previously that the poor performance was just an inventory overhang and Covid era pullback?

Another poster contacted IR and he was told early June. It seems the results are pushed back a month.

My bid hypothesis at results would be on proviso of poor results, share price falls and Dan failing to convince investors that there is a credible plan.

Poor results are a given…..

I doubt if Mike would try a proxy battle. He got a bloody nose.

I was stunned by the overwhelming number of shareholders who supported mgmt, only for them to renage on their promises within six months.

Mike is being uncharacteristically quiet. We can only speculate.

He may put in bid after results - this could get him 51%.

Whilst I agree that the track record on capital allocation is on balance poor. Likewise the 2nd PLT transaction was the most value destructive for “non-controlling” shareholders (let’s not dredge this up again though as it has had plenty of debate already).

It does seem clear to me that the reality of the situation is now understood and the heady days of Covid capital allocation are over. I would say that based on past 18months, mgmt have been more disciplined.

I think the governance structure would benefit by Kamani’s stepping back and letting a professional executive team with oversight from independent BoD being the way forward.

I hope Kamani steps down at next results.

If a Patsy would like to step forward and buy my shares for 38p?

I voted for Ashley.

But we were at 38p a share and BoD were releasing daily RNS’s about how we should believe in credible plan which was imminent, and wait for 1Q Capital Markets Day.

And the patsies believed in it. Institutions as wells.

Level5,

Ey Lad, I will now read your posts with a Yorkshire accent.

I think there is a solution to close loophole, but maybe exemption only applies to businesses with less than £100m in UK sales. Put the onus on the foreign business.

The problem with cancelling de-minimis is that it suddenly requires a huge administrative cost of Customs and Duties. It will also risk bringing international mail to a halt. Royal Mail is a loss making exercise.

De-minimis isnt the UK govt being nice to foreign importers - it would be loss making to collect the tax.

Agreed SCB - I struggle to see how jettisoning the labels will release shareholder value anymore.

I also agree with your view that they need to cut the wage bill. If this is a 2-3yr turnaround, they need to ensure they remain FCF positive whilst they wait for the marketplace strategy to bear fruit.

Whilst we cannot rule out going bust, I do feel balance of probability is for the share price to recover.

The earnings results are absolutely abysmal and are expected to remain so for next year. The share price reflects this.

If it can manage its debt, right size the cost base to reflect new reality, and get into a positive cash flow position, then this will fly when the earnings reports start to show an improvement.

Hunker down and wait! I would like the Kamani's to step back though.

23p share price is untenable.

Kamani control of Board is untenable.

The share price reflects the poor governance.

Umar

One Frasers

8NEDs

I be happy if co founders step back, and one seat given to Umar.

Agreed.

Speak to any private equity manager, and they will tell you that the first way to scale and professionalise a growing business is for co-founders to 100% cede control to a normal mgmt structure:

1) independent board

2) professional CEO and CFO who can be fired.

Kamanis are too influential in the power dynamic and it is holding back shareholder value. Credible Plan part 1 is for an independent board.

To clarify, I’m bullish and not selling. But this turnaround is painful.

I done recovery plays before but this is taking too long.

Cull staff including Kamani’s. This is a large organisation. Independents on Bod need to wrestle control.

Thanks for responding Ocean, I was feeling like the teacher in Ferris Bueller’s Day Off doing the roll call.

Anyone?

Every 6 months, we painfully wait for a delayed earnings report while day traders mess about with share price.

We are told off one off impairments which will bring £20m in annualised cost savings from next period, but there is an immediate cash cost. It rolls around and again we have another one off £20m annualised cost savings.

There is only so long we can adjust EBITDA, net profit and cash flow.

I sense that which every double digit decline, we need another one off impairment to right size cost base. They need to stabilise revenues.

The BoD needs to boot the Kamani’s off.

An independent BoD free from Kamani and Frasers, and a good mgmt team. We have the latter….

A client once said to me after I explain why his portfolio went down, and was questioning my fee:

“the house always wins”

I was quick to correct him and he declined my offer for me to end the contract.

However, it does feel that the Kamani’s are the casino owners in this and still extracting a fee. Debs was a shrewd move but that second PLT acquisition……