Member Info for micasan

@pmh how did you manage to get to EV of £1.5 billion

You're making up numbers? Debt outstanding is £ 640m market cap is £711m and cash is £278m and if you want to include lease liability then that would be an extra £70m in debt which = £ 1.150 Billion

If you want to speculate that MM is lying and all the lease liability is staying with remainco, which is ridiculous and is never going to happen , we may as well consider that guidance was that this year would be cash flow positive but let's just be conservative and say they will break even that would mean by year end results cash will have increased by £128m so by being conservative and assuming the worst possible outcome for lease liabilities the EV would be c.£1.290 billion

It has been stated that the cash taken with ingenuity will be the £75m from the placing and the rest is staying with remainco

For anyone that doesn't know what enterprise value is, it's a more accurate way of seeing how much the market is valuing a company and it's how much it would actually cost to but the company

For example a company has market cap of 100m, debt of 100m and cash of 200m. You would have to buy all the shares in the company which would cost 100m, you would also take on the debt of the company of 100m giving a cost of 200m. But since you have bought the company you also own the cash within it so that offsets the price of the shares and the debt

So EV = mcap + debt - cash

And in the example the EV would be 0 since 100+ 100 - 200 = 0

So remain co EV is around 1 billion I think

You subtract cash when calculating enterprise value

Pmh you may be right but we're all just speculating

Pmh its not really optimism, when ingen is demerged there will be 10-15% less shares putting the mcap around 630 and even if you assume that remainco will have the same free cashflow as FY23 of £70m as previously stated and assume NO growth then it's still not a bad deal when being pessimistic. A slightly optimistic view of 5% growth per year would generate a huge return

not sure how much you know about stocks but if a company generates cash the stock goes up

Steve once it's demerged it'll be trading at 7 x free cashflow, not much more analysis needed than that

There was also little to no volume Roberto

I'm not saying it's good that the price has dropped but the fact it's been done on little to no volume makes me wonder what's going on

I'm in stage 5 Roberto (acceptance)

I've accepted you're a W⚓

Doing your part to clear the old stock after the rebrand 😂

I've had the same thought since the RNS Stanley

Gives a couple of months for anyone to accumulated shares before the inevitable climb

No not yet, on half year results Jose said see you in October/November

If you were to sell at any period of time during THG being on the stock market selling now would probably be the worst possible time to do so

Roberto you genuinely make me laugh so much 😂

I'm sure something is definitely cooking

Could they be interested in ingenuity?

Roberto and his crew of alternative accounts

They are focusing on profit over sales and was stated ebitda will be on top end of consensus so they are delivering on their objective. In FY25 we will see if they are able to grow sales when it becomes a focus

I see their estimates already as rather conservative

Yes robo they sold top shop to help with the abysmal debt problem which has largely been solved along with refinancing given they are able to return to cash generation.

ASOS is cheap for a reason due to past mistakes but calling them out for making positive moves in the turnaround makes you seem foolish

All of that was explained in the initial rns about the demerger