focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
What’s happening here then
NO debt and total assets amounting to £7.542 million
Yep UK market is simply corrupt it’s that simple
The cloud model that all top US companies adopt now is all driven on ARR subscriptions & customer retention so buying a company with well established ARR & large customer base is a perfect fit; more so than the old days of on premise software which introduced harder consolidation models than cloud now wipes away
With their ARR & significant customer base they are a perfect buyout from a US competitor
Just look back at previous security tech company consolidations - this is a hot buyout target for sure
But now new Institutional Investors have bought into 3% of the company which is great
Seems apt for their own shares now 😁
Buyout defo on the cards …..
LONDON, July 27 (Reuters) - British sportswear and clothing retailer Frasers Group said it expected profit to grow by at least 5% in the current financial year after it posted a 40% rise in annual profit for the 12 months to the end of April.
Adjusted pretax profit came in at 478.1 million pounds ($619 million), towards the higher end of its forecast range for it to come in between 450-500 million pounds.
The FTSE 100-listed firm, formerly called Sports Direct, was founded by Mike Ashley, a former squash coach turned retail billionaire and owns brands including House of Fraser, Flannels, USC and Jack Wills.
Frasers said it would see further strong profit progress this year, and that it expected adjusted pretax profit in the range of 500 million pounds to 550 million pounds, which would represent "strong underlying trading profit progression" given that the contribution from property will be lower.
The group has recently bought shares in electrical retailers Currys and AO World and fashion seller Boohoo, adding to its portfolio of stakes in Boohoo rival ASOS, German fashion house Hugo Boss, clothing retailer N Brown and luxury brand Mulberry .
Michael Murray, Ashley's son-in-law, has been Frasers CEO since last year. Ashley still owns 72% of Frasers' equity. ($1 = 0.7724 pounds)
Frasers Group reported a strong performance in the financial year ended April 30. The retail group said revenue grew 16% year-on-year to GBP5.57 billion from GBP4.81 billion, thanks to a 53rd week in the year as well as acquisitions. Meanwhile, pretax profit rocketed 97% to GBP660.7 million from GBP335.6 million. "We were bold in setting our full year guidance twelve months ago, before the full impact of the cost-of-living crisis was clear, but our business has remained resilient, and we have met these expectations," said CEO Michael Murray. Frasers noted a strong performance across the group, which was boosted in particular by profitable growth in Sports Retail - this shows elevating Sports Direct was "the right strategy", Murray maintained. In financial 2024, it expects further strong profit progress, but a "significantly lower" level of profit from property. Adjusted pretax profit will be in a range of GBP500 to GBP550 million, compared to GBP478.1 million in financial 2023.
Dumb @$$ London stock market is a bit thick to tech - hope they move to Nasdaq
With Lynches wife starting selling off her stake the sky is clearing now for takeoff
Typo on £ lol but still 3rd/4th on volume
£100.63m on leaderboard
Something going on for that volume!
They will only buy I think when SP is below a certain threshold
Hopefully at end of BB they will get FCA to cancel the shares bought and increase the SP for employee share options & investors as well as improve EPS for buyout valuation similar to Nasdaq competitors as I’ve calculated previously est 596p to 1156p;
Crowdstrike
SP $148.60
MC $35.11B
Customers 23,000
ARR $2.1B
Trading @ 16.7x ARR to MC
SentinalOne
SP $14.58
MC $4.52B
Customers 10,680
ARR $522M
Trading @ 8.6x ARR to MC
Darktrace
SP £3.948
MC £2.768B / $3.57B @ 1.29 ex rate
Customers 8,800
ARR $626.5
Trading @ 5.7x ARR to MC in $
Low end valuation of DARK should be 596p
High end valuation should be 1156p
Any Nasdaq traded company could buy dark just for ARR & get a Nasdaq rating for just on customers & ARR
Crowdstrike
SP $148.60
MC $35.11B
Customers 23,000
ARR $2.1B
Trading @ 16.7x ARR to MC
SentinalOne
SP $14.58
MC $4.52B
Customers 10,680
ARR $522M
Trading @ 8.6x ARR to MC
Darktrace
SP £3.948
MC £2.768B / $3.57B @ 1.29 ex rate
Customers 8,800
ARR $626.5
Trading @ 5.7x ARR to MC in $
Low end valuation of DARK should be 596p
High end valuation should be 1156p
Any Nasdaq traded company could buy dark just for ARR & get a Nasdaq rating for just on customers & ARR
*just on customers & ARR
Crowdstrike
SP $148.60
MC $35.11B
Customers 23,000
ARR $2.1B
Trading @ 16.7x ARR to MC
SentinalOne
SP $14.58
MC $4.52B
Customers 10,680
ARR $522M
Trading @ 8.6x ARR to MC
Darktrace
SP £3.948
MC £2.768B / $3.57B @ 1.29 ex rate
Customers 8,800
ARR $626.5
Trading @ 5.7x ARR to MC in $
Low end valuation of DARK should be 596p
High end valuation should be 1156p
Any Nasdaq traded company could buy dark just for ARR & get a Nasdaq rating for suck on customers & ARR
Agree
My read here is they are un diluting shares to decrease pool ready for incentivised employees share options maturing in coming years as well as increasing EPS metrics
While is private buyout is possible I doubt that will materialise as I think they are first increasing value for employees & shareholders, intimately making them a bigger buyout price tag to the benefit of all employees firstly & shareholders next.
Recon we will see some interesting events after share buyback programme is completed & shares cancelled to lower the floated pool available ….
We’ll see 😉
A lot of films flop at the box office as over hyped