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He’s linked to a THG in a few ways…
Philip Hoblet, Jefferies, are joint brokers/advisors with Zeus Capital, including Boohoo:
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2023/trading-update-p3-fy23.pdf
Zeus Capital are brokers for Kelso Group and John Goold’s previous Company, where he worked on THG in 2017 and Boohoo fundraising.
Interesting if you research John Goold + zeus capital. Looks like he worked with THG in 2017, led Revolution beauty IPO, Boohoo fundraising. Pretty well connected, knows the industry, specialist in ipo, m&a and fund raising. Interesting times ahead.
I personally don’t agree with the post. I just hope this isn’t a reaction to a deal falling through.
The postal strike should only have impacted the last week before Xmas, as people didn’t want to take the risk and last order dates were restricted. Lookfantastic had a pretty good last order date if I remember correctly.
Without m&a or covid upside clouding the numbers, they’re having to trade, which they have less experience of. They could have shared the strategic review in Oct & maybe the miss on EBIT was convenient &/or they dumped everything into 2022 once they knew they were off.
The current position is unacceptable, after 18 months of shambles.
They appear to have lost control since the update in Oct, unable to drive sustainable growth outside of covid lockdown or m&a and have built no relationship with the media.
Do PI’s have any weight at the AGM?
Similar thinking. With a whale helping towards capex + ingenuity revenue. Maybe £250m.
Makes sense at this time of year, but not sure it explains why THG has been pulled down more than any other depressed share today.
They have passed on price. Products I personally purchase have increased. I’ve also just checked top selling proprietary products from L’Oreal, the Ordinary, Estee Lauder, Cera Ve etc and the RSP is consistent with the market. I’ve also never seen any customer comms saying we’ve frozen our prices.
Not sure why they ever said it. It not realistic in the current market.
This was my only investment outside of my ISA or pension.
Does that mean I can claim tax relief based on this loss, through my self assessment / capital gains?
So c. 40% claim?
Do I have to wait for administration to end?
Hopefully useful to other holders too.
Is QIA’s average c. £1.715?
IPO buy 27,347,674
Today 67,801,285
Fockers…
https://www.retailgazette.co.uk/blog/2022/10/bensons-for-bed-eve-sleep/
…
Lessons learnt
Although I see a great fit with Argos / Habitat, you don’t see Sainsburys doing much M&A.
Personally I think the outcome is decided, and will be announced shortly. If there’s a deal, I can’t see it being higher than the 3 month range high of 1.1 (current 0.525).
In 2017, DFS bought Sofology for 17% of revenue, after Sofology reported a £(8.9)m loss. DFS had recently reported a downturn in footfall due to consumer confidence, but quoted they expect £4 million in annual savings as a result of the deal. The markets reacted positively to the deal.
On the flip side, a few months later, DFS acquired the assets of sofa maker Multiyork Furniture Ltd from administration, for a total of £1.2 million.
DYOR
With evesleep-France closed down and distribution through Dunelm, Homebase and Next stopped. Will DFS be the last channel for Eve Sleep? Hopefully we’ll find out this week.GLA.
Edited Transcript of DFS earnings conference call 15-Sep-22
“our exclusive brands are a key way of differentiating our product range from the rest of the market and they broaden our appeal to a wider range of customers.”
“Turning to the home opportunity. We view the beds and mattresses segment as a key long-term opportunity to grow our addressable market for the group. With a market size of around GBP 3 billion per annum, our ambition is to grow our share in this segment to around 4%. Now we're able to utilize many of the group's existing assets, including our sourcing and manufacturing capability for upholstered furniture, our web and logistics platforms, our marketing expertise and data and our differentiated brand partnerships. With over 700,000 customers each year shopping with us already, many of them utilizing interest-free credit, we have a really strong opportunity from our existing customer base. Now a key element to achieving this strategy is to raise product awareness. And to that end, we've been investing in above-the-line marketing as well as digital marketing to drive awareness of the bed and mattress offer, particularly DFS. Indeed, we released our first non-Sofa TV advert earlier this year, focusing on our bed range. We've seen strong growth with our online bed sales increasing by 94% versus FY '19. In terms of our supply chain capability, we're using our existing customer delivery network and assets to consolidate beds and mattress deliveries in our large warehousing facilities in Milton Keynes. And we're going to continue to build our capability and foundation to support this growth opportunity over the next few years.”
“Question from Jonathan Pritchard from Peel Hunt. Two from a sort of space angle, really. We saw beds and mattresses on the Capital Markets Day at Milton Keynes. What's the potential for that? Has that changed? Or is there a potential for that to go into a number of more stores?”
“Timothy Giles Stacey, DFS Furniture plc - So take the beds and mattresses in stores. So we -- you've seen, we're trialing in a number of stores, different approaches to home, particularly focused on beds and mattresses. It's fair to say we're looking at increasing some of the space. We've put some mezzanines into a couple of stores to see how that works, and we've seen some encouraging signs there. I think our focus is online, to be clear. And we've massively increased the range of beds that we've offered across all styles and price points, and we're really advertising heavily digitally, and we're seeing some really strong growth there. So that's our primary focus, and we'll test and learn over the coming year about our in-store offer.”
James also has skin in the game, with 2.7m shares and c. 2m of share options. DYOR
James Sturrock, Eve Sleep Board Member and ex CEO, seems to be doing a good job at Tapi Flooring, recording their first profit.
https://www.thestocklists.com/tapi-plans-growth-despite-slowdown
Tapi’s biggest shareholders are Billionaires Will Aderley founder of Dunelm and Lord Kirkham founder of DFS. What an amazing network.
Hopefully James see’s the opportunity to finish the Eve Sleep turnaround he started.
I noticed that. The single 1 share trade was interesting, based on folklore, I was waiting for a big RNS to land :-)
3% at the current price is only c. £45k, so it could be anyone who has the right information / connections. If the chef is confident in their insight, it could be them.
I can’t be certain Yanis. But there aren’t many on LinkedIn or companies house.