Hidden Gem or Value Trap? The Next Update Will Tell30 Jun 2026 08:39
Think the market has completely missed the point here.
Everyone has seen the 53% discount and hit the sell button, but hardly anyone seems to be talking about what the cash is actually for.
This isn't a company raising money just to survive. They're raising to accelerate.
Management have spent the last six months fixing the foundations. Next-day delivery is now standard, they've built an Excellent Trustpilot rating with over 35,000 reviews and they're saying the business is now in its strongest operational position.
The cash is going into three things:
* More inventory.
* More marketing.
* More working capital.
That's exactly what you'd expect from a business looking to scale.
The bit that caught my eye was the marketplace strategy. If they can become the go-to platform for manufacturers and wholesalers to clear surplus stock, that's a much bigger opportunity than simply buying and reselling products themselves.
Then you've got TikTok Live, WhatNot and eBay Live. Clearly management see another growth channel there after the early testing.
People also seem to be ignoring the Chairman putting in £175k of his own money. He knows the numbers better than anyone. Directors don't usually write six-figure cheques if they think things are about to get worse.
Yes, dilution hurts. Nobody likes it.
But if this funding gets them to operational cash-flow positive, today's market cap could end up looking ridiculously low.
At around a £2.6m valuation, the market is pricing this as though the turnaround has already failed.
Personally, I think the next few trading updates are going to be far more important than today's placing price.
Just my opinion. DYOR.
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