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If you look at price to EBITDA it's less flattering for Rev B however as Warpaint has better margin atm and no debt. But still would put RevB around 82p a share on the same current price to EBITDA. Obviously there is still uncertainty what Rev Bs Ebitda figure will be.

Realized I was actually using last years sales figure for Rev B. Last thing we heard was this I believe - "For the full year to February 2023, the beauty company said it now expects between £215mln and £225mln of net sales and adjusted EBITDA of between £18-£20mln."

If we say £200 million revenue to include the deductions from audit etc and consider warpaint is at 2.59x revenue it would take Rev B to £518 million market cap or £1.68 a share if matching warpaints price to sales.

My only fear is Boohoo somehow getting this cheap. I think they are still a fair way off though. They currently own 26.4%. I'm just wary of a situation where the founders were in some way pressurized to sell their stakes meaning Boohoo get them for cheap too which would take Boohoo to 58% odd. As-long as most other holders refused to sell cheap would still be okay.
If Rev B were given Warpaints current price to sales then from my calculation this would put Rev B at around £1.50 a share. Before I'm accused of ramping I'm not saying this will be £1.50 (at-least in short term) but just pointing out one could make arguments that this is very undervalued (barring any surprises in results) hence not wanting Boohoo to get this cheap.
Obviously the recent audit events will give the sp a discount for a while but I don't think it should be too steep when most of the management team have been replaced (CEO, CFO, 2 NEDs and supposedly soon the chair) plus the new CEO is regarded as an "industry heavyweight" which has yet to be priced in. Also the new "relationship with Walmart" as described by Rev B vice president has yet to be priced in, will obv need to see the outlook guidance for how material this may or may not be.

Warpaint up 74% since Rev B suspension (obv that's without them having the huge fall rev b had before this gain).
Warpaint market cap at £154 million whereas Rev B currently at £58.5 million.
Warpaint revenue for 2022 - £61 million, Rev B not clear yet but might be around £175 million?

Would be disappointed with a 30p open. This actually got back above 30p even with the market knowledge of "issues relating to revenue recognition, stock provisioning and bad debt provisioning".
It only fell back once it was confirmed audit wouldn't be done in time so would go into suspension. The fear of it going to £0 was obviously a major drag. The audit issues were a big part of what made it fall from 60p.
Also have to consider other beauty companies have performed well since Rev B suspension with ELF almost doubling in price, new "industry heavyweight" CEO, Boohoo large buying and a new "relationship with Walmart".

Maybe Rev B should list in the US? Get closer to Elf valuation metrics.

Didn't seem like there was anything bad enough in the forensic report (which took over 3 months to compile) for the FCA to take any kind of action. The changes applied will show in the new accounts to be published and they will put in better controls. Plus CEO, CFO and 2 NEDs from that time have all gone. It was indicated the chair would be replaced too.

Elf Beauty is up 94% since Rev B was suspended and they didn't have Rev B's giant fall beforehand.

FT describes Frank Tuil as "one of Europe's most feared activist investors" - https://www.ft.com/content/43c4fb8e-ba7c-41dc-ac83-c1f2d3021617

"An activist hedge fund, founded by a former executive of the fearsome US firm Elliott Advisors, has taken a stake in THG, leaving the troubled online retailer contending with two activists on its sharebolder register.

London-based Sparta Capital recently bought THG shares, which have tumbled amid concerns over governance and tough trading conditions.

Meanwhile, Kelso, an activist that disclosed a 0.4 per cent stake in THG in January, is thought to be on the verge of going public with its recommendations to the board. Kelso, led by City veteran John Goold, is expected to urge THG to move its shares to the premium segment of the main market.

THG, owner of Myprotein and Cult Beauty, said almost 18 months ago that founder and chief executive Matt Moulding would give up his golden share, which gives him the power to veto hostile takeover bids. It will need to be relinquished for THG to attain a premium listing.

In September, THG said it intended to join that segment, but cautioned that the timing would depend on the outcome of a regulatory review into the listing regime.

Sparta, founded in 2021 by ex-Elliott portfolio manager Franck Tuil, publicly urged engineer John Wood Group last December to start buying back its shares. As well as waging activist campaigns, Sparta seeks to engage with its target companies. Tuil led Elliott’s purchase of AC Milan."

https://www.thetimes.co.uk/article/activist-investors-take-thg-stake-and-pile-pressure-on-matt-moulding-0xh9wtdvm

From what I understand CS has been in trouble for quite a while? It seems like this "material weakness in financial reporting" might just be unfortunate timing with the recent collapse of the other 2 regional banks which seemed to have specific issues almost similar to FTX.
Obviously short term still may be bad but don't believe it is 2008 again, a lot of the banks are in better shape.

FT describes Franck Tuil as "one of Europe’s most feared activist investors".

https://www.ft.com/content/43c4fb8e-ba7c-41dc-ac83-c1f2d3021617

Does still sound very much a rumour though - "Some of these people following the situation suggested the investor could be one of the new activist funds set by former Elliott executives, such as Sparta Capital Management, led by Franck Tuil, or Palliser Capital."

Ryan I agree about MM. Though obviously the buyout he rejected was for all of the shares including his, it wasn't a joint offer with him buying it out too. So I would still say it doesn't make sense to say to be worrying about debt in the company as the offer was for all the shares including his.
From what I've read the duty is to the long term interests of the shareholders. Hence it's not the case offers would always be accepted if it's believed shareholders would be better off waiting for better offers etc. Ultimately the shareholders are the ones who vote on who will be the part of the board. The board work for the shareholders, obviously they do what's best for the company day to day but only because that benefits the shareholders interests long term.

Okehurst the BOD duty is to the long term interests of the shareholders. How THG would look after being bought out wouldn't be relevant to the shareholders as they'd have had their shares bought from them.
Fair enough to reject because they think THG will be worth a lot more for shareholders soon however to reject because of how THG would be once it had been bought out with more debt shouldn't be a reason as it's not relevant to shareholders as they'd no longer have shares in it.

1pencil that wouldn't have been shareholders problem as we'd no longer own THG so wouldn't mind if it had been bought via leveraged debt.

I think the excitement is in part the market wondering if we are going to move back up to £2-£3 having fallen from £6.50 rather than always being specific big news. I'd say it could re-rate to here purely on macro improvements such as inflation receding even with no big news based on the sum of the parts. When MM's golden share goes in Sept SOTM will become more in the markets minds.

Crowman wouldn't it be better to sell and buy another share, there must be some others out there where you're not wondering if they are the new Quindell?

Feels like THG are getting more city friendly, perhaps Lord Allens influence. Saw this comment on the new IR linked in post -

Phil Adams - Congrats Greg !! Full circle !
Greg - It’s funny isn’t it - Damian suggested dinner?
Phil Adams - sounds good - definitely

Phil Adams is 'Head of Global Technology Group and Co-Head UK Corporate Finance at Houlihan Lokey'

https://www.linkedin.com/feed/update/urn:li:ugcPost:7038544646217588736/?commentUrn=urn%3Ali%3Acomment%3A%28ugcPost%3A7038544646217588736%2C7038621482670804993%29

Can't really see premium listing being a instant crush of shorts, more likely something that would slowly be priced in?
Either way it's hard to not be a bit impatient days like today for MMs golden share to go or premium listing which some argue may make it harder for MMs to move the sp so easily (though can work in our favour to upside too).

It seems like the timings of the payments are agreed either way? The uncertainty might be around how much these future amounts should be but as the first payment isn't until 21/10/2025 it shouldn't effect current statements other than the non-current liabilities figure but even that shouldn't really matter as the uncertainty is whether these payments should now be lower and the accountants will be happier with being prudent and giving the higher figure as is known for now.
Lets hope this was agreed quicker than thought and now accounts can come up with more speedily but obv with how it's been here with the wait its more a hope than a belief.