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It’s like billing a client £1.2bn, when it cost you £1.25bn.

Boo needs to sort its …. out.

SCB,

Thanks for your insightful post.

I am actually feeling more bullish.

Credible plan is simple: This is a £1bn-plus revenue business.

A) stop the revenue decline;

B) and extract consistent positive FCF from it.

I am also peeved off with mgmt but I hope Dan can show us this business is undervalued at the next results (albeit poor results).

I think management need to address the question.

Let's say everything remains the same and that Boo was FCF neutral. Its FCF yield would be 0%. If it knocked £25m off the wage bill, and sustainable FCF goes to £25m (all other factors remain the same). Then this would represent a whopping 7.9% FCF yield! (£25m FCF /£318m Market Cap).

I still believe that this is very cheap on revenues. We just need a business model that can consistently extract a single digit profit margin (or +ve FCF to sales), and stop the revenues from falling double digits!

Apologies, the original calc was correct:

£1,460,000,000 revenue / 5,079 employees =£287,458 Rev per Employee

I am actually impressed that each employee generate this much revenue. Apparently average in UK is £118k according to Google.

Final correction, I multiplied by 100,000 instaed of 10,000.

Rev per head if now £28.7k versus £57.5k in 2021.

Looks like Dan and his new CFO need to do some KPI checks as the BoD is asleep at the wheel

I rounded revenues (not necessarily up). but it paints a picture.

I have to go in my garden now with a beer and stare at the plant beds I'm meant to be weeding.

I rounded up revenues, but revenue per employee peaked at £575k in 2021, it is now £287k in 2024.

Boohoo

Revenues Employees Rev Per Employee

2019 857 2188 £391,682

2020 1230 2619 £469,645

2021 1750 3042 £575,279

2022 1980 5350 £370,093

2023 1770 6190 £285,945

2024 1460 5079 £287,458

Today I’m procrastinating over weeding my garden.

I don’t have access to Bloomberg anymore otherwise it would take me 10mins. Does anyone else have access to financial data database.

It is essentially 60 datapoints. Theoretically easy.

I guess the second ratio be harder as they may not break out wage bill. Some report SG&A.

It would be interesting to see two 10yr charts comparing BOO, ASOS and Zalando:

A) revenue per employee

B) wage bill as a percentage of revenue

We can then see what mgmt team was “drinking the kool aid” during lockdown believing they could squander company cash flow. It seems that mgmt teams were spending it like a rapper in strip joint. More baby oil!

We are told the new strategy is capital light. They are closing DCs. It seems logical that they now have to right size the head count to reflect the reality.

That’s a compelling post SCB comparing headcount and revenues to FY20.

I’m wondering if the new mgmt team are working on a major cost cutting plan to announce before next results, while old CFO does the accounts for last fiscal year.

It could explain the expected delay in announcing full year results?

By night, RazorsEdge prowls the streets looking for lost cats on the local Facebook group, with a bag of MilkyTreats.

He calls out: “Mr whiskers”;

And shakes his bag of MilkyTreats.

At 6:30am, he returns home and updates the Boo board on a market update. Then he goes to sleep.

RazorEdge:

I’m curious, you are diligently here before open, to give a market summary. You’re impartial but seemingly invested.

What is your background?

With any luck, Dan will thank Kamani for his contribution to building a leading online apparel retailer as Kamani decides to step down to focus on other pursuits.

Ultimately it is will come down to cash flow and fy26 guidance.

But yes I suspect reported profits will be absolutely awful.

Writing down prior investment in DC or inventory is a non cash item. Severance payments is a cash item but quickly pays back.

They probably need to delay as the “right size” business. In other words, they need to sack a lot of staff as revenues are falling. It would be poor etiquette to announce mass layoffs in the company results.

Just a guess. Has anyone heard if jobs are at risk?

The DCs which have been sublet will probably be impaired.

New ceo and cfo.

Kamani no longer director on companies house.

A new strategy.

I think these results will be a complete reset and kitchen sink.

I know Bloomberg has an expected earnings release date based on previous year. The journalist may have sourced it from a similar source.

The article also contradicts itself stating it is FY25 ending Feb 29th as well as first full quarter trading under Debs.

I have more confidence in your post as it is more credible.

The 11 March announcement where they announced new CFO, also stated that old CFo will oversee results. Don’t know why he would need an extra month.