Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Matalan is a good win but we are only doing half of the ingenuity game. Vs the one announced today which is the full offer so much better
Oke all that’s “new” in the new Autostore deal is how the customer pays for it. The rest of it existed for a while
The previous deal was saas offering for THG as we were only selling the WMS
There’s nothing new except the option of how the customer pays
Oke the Autostore api was done the first quarter after softbank invested. That isn’t new
This is a good RNS for ingenuity. A good sizeable client (on the website tracker there was a lot of churn of the lower sites recently so they were all obviously loss making - again a lot more smoke and mirrors to what we were told)
The only issue here is we own businesses which do exactly what these businesses do! We are competing with ourselves. If we help these guys double it’s likely some of that comes from lookfantastic and cult (you’ll remember H1 where Matt said fragrance was our fastest growing category)
But hey atm we need cash and FCF so let’s just take it but I think the issue in the next update will be very poor revenues from Beauty division. This is the problem with being a business which is actually three businesses. Something will alway be missing and detract from the progress of the other two
“Golden maybe a few people talked about the studios when it was 800p but it's hardly been argued to be a strong part of the business for a long while.”
This isn’t true Hosai. As I said JG was flogging this in the analyst calls since the Ingenuity capital markets events
It’s been argued to be a strong part. MM even posting to insta to say how amazing it is etc
“Golden - you don’t need your own highly expensive in-house studios to produce brand content. THG could hire studios ‘on-demand’ as clients onboard. CAPEX = £0 and the fixed labour costs are then variable in tune with client requirements. Basic business 101 stuff.”
Boom I haven’t said anything to disagree with this. Again you’ve missed the point of what I said. THG went and raised billions on Ingenuity being a shopify beater and studios being a key part as THG can build brands
Well it’s turns out studios was a flop and we can’t build brands. As all of the small sites have flopped. Even at the CME JG was bragging about how they turned round Zavvi as ingenuity was so amazing. But again smoke and mirrors as Zavvi was a dud!
Boom I don’t disagree with your points if that was the state of THG. But what you’ve done is completely cut out the context of what studios were meant to be. As I said, why Ingenuity was different to Shopify.
The brand building etc. but now it shows it’s what everyone suspected ie smoke and mirrors
And shares are only to senior management so they aren’t a huge retainer generally and also given shares which have plummeted in price is also demoralising so I wouldn’t say it’s a positiev
I think the cut of studios is negative as again it just points to the smoke and mirrors! The studios were supposed to be a key USP to “brand building” capability that THG had that shopify couldn’t compete with. It turns out, again, it was just vanity
Even on analysts call you had JG stating how studios had been a shining element in otherwise poor ingenuity quarters (“revenues up by 80%” and “biggest in Europe”)
What is THG? Who really knows at this point? Makes you wonder how many products in MyProtein are profitable? Are we doing clothing just for a laugh?
Even on this board when I asked what is it that Ingenuity is that Asos doesn’t have and the main point shouted about was studios. And now we are all fine they are gone?
Also it’s got to be pretty demoralising for staff going to head office to see a huge empty shell of a failed division?
Sainsburys has carried it's hair care and skin care for a while now (over 18 months). They just don't carry the make up which was Adam's strategy to keep it out of supermarkets
I bought this a little early last year but I’m not too worried and probably should have topped up. Instead I’ll wait until we are fully out of the woods re inflation
One thing I like here is this a really well ran business. I was really impressed with the last analyst presentation. Really well invested business and well ahead on ESG and carbon etc
Paying down debt too is good but not out of the woods yet
I don’t follow or understand charting so I can’t help. All I’ll add is that it’s positive to see the share price go up
£40m of FCF for FY24 is compelling and shows we can delever the business (I just wish they would for 12 months)
Interesting to see a tonne of PE deals across all Marlowe verticals in the last two weeks. All at the smaller end but it’s testament to the attractiveness of these markets
That was me! Ha the debtors question and also the one about prioritising deleveraging vs hitting the target
I did ask a few others but they weren’t picked
I thought the presentation was good. Looks like there’s quite a bit in the tank in terms of cost savings and synergies
I was glad to hear on debtors and that there isn’t a huge issue there
Price recovered well during the presentation but the short linger
Is up to £170m but we ended last period at £156m. This takes into account the £18m deferred consideration and £9m for the “small bolt-on” so strip those two things out and we produced £13m of FCF
I know some of this was NWC unwind but I think this does start to show the cash generation potential
We were also told at the last update there was £8m for restructuring costs in H2 so that would make FCF £21m
“Golden - If THG have put up pricing for My Protein but revenue stays flat that would be a vast improvement.
Lose some market share but significantly increase profits I would take all day long.”
They did this through FY22! How have 6 people liked this as though it’s gods wisdom and nothing we’ve just done? Madness
The issue with the above is apparently we weren’t putting up prices as much to grow market share yet we lost market share
Not what we wanted to see at all
Really hoping there is some positive news on net debt and cashflow tomorrow
I fully expect a revenue miss. Beauty got spanked over Christmas even though we were all raving the results from teh like of Boots etc
Myprotein as well hasn't performed well. The H1 figures showed customer numbers down so if these haven't gone back to growth that's a big concern. Also if your selling price double (or whatever the % increase is) but your revenue is flat then it means volumes fell which means we lost market share
On ingenuity we still haven't seen Matalan go live
If any of the above is still seen in Q1 then we are in a sticky place. I'd like to see more cost cutting
I ordered from the “Heinz to home” website yesterday
Does anyone know when this website moves over to THG? I assumed it was now but when you look at the privacy policy it still shows other providers
https://www.matalan.co.uk/customer-services/privacy
Thanks
"Unless my trusty calculator has become disfunctional, a basic review of the group's turnover which in the most recent accounts was reported as being GBP 2.18 bn for 2021 indicates that with their current levels of growth this should be over £3bn for 2022 and is likely to be over £4bn for 2023"
Did this trusty calculator account for the 10% yoy fall in beauty in Q4
Come on pearls let's see your calculations
Is pearls the biggest idiot on here? Yes
Overall I don't think we will see net debt down by a huge amount
From the investor call it was stated that there was another £8m of restructuring costs to go in H2 so even if we unwind the NWC outflow from H1 that is neutral
EBITDA should then contribute but interest has increased (analysts have interest rate at 3.5% so the diff not as large as i said below) but then we know we've done a few small bolt-ons (which I'd rather they hadn't atm - not saying they are bad businesses)
I wonder if capex will come in a bit less?
One item I will be watching will be debtors to see what impact we are seeing there and hopefully this balance hasn't increased (excluding M&A)