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Although I agree the recent price action is concerning, and that market sensitive information leaks out, which could imply status quo…..

I do think there is a chance of Fraser’s winning this. I think retail is probably voting in favour of Frasers but this won’t be enough to pass it. However, it would seem Camelot have more of a beneficial interest in working with Frasers. That could tip balance hopefully for change.

With both major shareholders near the 30% limit (including concert parties), there will be no big players to keep the Hedge Funds in check. Institutional investors dont see to have much interest.

I worry that post this proxy battle, we will return to days of old where we only get an update every six months. The share price will then be at the mercy of day traders and hedge funds.

If the BoD do win tomorrow, I would hope the RNS is accompanied by a statement that it will do more to protect minority shareholders' interest. The new Head of IR is hopefully a new start.

*couldnt see Boo in the top ten holding of any Schroders fund.

I suppose the question is how will market react. Well we do not have any info and Frasers will still be minority on BoD so it be difficult for them to derail “the credible plan”

Regardless, maybe this proxy battle has achieved its objective. Minorities want action to get share price up.

It’s encouraging that we have new IR. Shows that BoD may have had concerns about influence with other shareholders?

Https://finance.yahoo.com/news/insiders-own-22-boohoo-group-091733298.html

The following is a breakdown of investor by type (before the recent equity raise).

We know Kamani and Frasers cancel each other out so it is how the other 40% vote.

It seems retail investors and institutional are more or less equal. I remember reading before that Boo had high retail participation.

I reckon the balance of retail will vote Fraser’s but it will also have a high proportion of no votes.

No idea how Schroders or Camelot will vote. They are Kingmaker.

I looked at the Schroders UK equity funds and could see any which had Boo in top ten. I imagine both Ashley and Kamani has met with both investors.

They are going to expand vertically into new markets, the first being turnips

Don’t worry peeps;

The BoD has a cunning plan!

I seriously think that splitting the business in two is an option the BoD are considering.

1) youth brands

2) Debs, Karen Millen and Labels

It probably has to pay off the rolling credit facility before it can restructure. Hence we need an office sale. I think this would release value very quickly for shareholders.

Umar take note on the influencers you need

https://www.linkedin.com/posts/marcosangelides_regardless-of-what-you-think-about-this-kind-activity-7274362612836978688-Xr8y?utm_source=share&utm_medium=member_ios

Https://www.retailgazette.co.uk/blog/2024/12/asos-loyalty-topshop/

I feel this article would be poor judgement unless they were seeing some improvement in revenue trends? Yes it finishes off saying they are not yet profitable, but the market is more focused on revenues and cashflow at the moment.

I suppose profit taking today should have been expected. I even thought about it. A quick trade to knock a few pence of my average cost price.

I thought there are too many catalysts over next six months and this is a daily soap opera. So decided to hold.

I understand the logic to your voting PaulleyD. It sounds a plausible outcome should he lose. There is certainly an argument to say he is less inclined to bid should he win. It’s all probabilities.

The Kamani’s may also have a cunning plan to increase share price…lol

I was also wondering about 3Q trading update. Did the BoD stop quarterly reporting? It’s odd not to have 1Q results. I thought we moved to six monthly?

IParsnip

In answer to your question whether to sell:

1) not selling a losing position is a form a financial behaviour bias;

2) selling your winning positions when they are going up is a form of financial behaviour bias.

I hope this helps.

Bfd, “releasing value” is code for a corporate action.

Every time Boo says credible plan, I think of Blackadders Baldrick: “I have a cunning plan”

There is probably a debt covenant somewhere which would necessitate a Soho office sale and debt down before a restructuring could take place.

It would explain why there are no details to credible plan.

I’m wondering if the credible plan is:

1) split the business in two of similar value (youth brands takes debt and SoHo office; Debenhams and Labels)

2) Fraser’s and Kamani clan do equity swap thereby giving each one control of one entity;

3) each party then issues a takeover offer for remaining shares from minorities.

Thoughts?

Well I agree that is an optimistic assumption. The market is generally sceptical when mgmt give medium term targets.

My original point was that it is worth at least 1x GMV if it could continue current run rate in growth.

I appreciate you correcting me on EBITDA margin calculation.

If you discount back £750m for five years at a cost of equity of 12%, you get £426m

Wayfair worth $6bn on $12bn GMV so probably a good comparable. It is ex growth. But I still reckon 1x GMV is not unreasonable given growth rate. If it reaches target of £1.5bn GMV, it suggests £750m potential valuation in medium term.