In todays IC - the Co's in AIM 10010 May 2019 23:22
The 6th largest is BOO
THE INVESTORS CHRONICLE states......
6. Boohoo
Online fashion retailer Boohoo’s (BOO) growth has been impressive in recent times, with its latest update bringing the shares to within striking distance of their all-time high of 266p, reached in June 2017. Its recent success has been down to the growth of PrettyLittleThing, which management says has grown faster than any other brand it has ever seen. However, as PrettyLittleThing’s growth begins to cool – as it must in the fickle world of fashion – the question is where the growth will come from next.
Management is still refraining from introducing a dividend payment, preferring to invest heavily in growth. It plans to do this through both external acquisitions and investment in growing existing brands organically. Thankfully, the group’s highly cash-generative business model – which more than doubled free cash flow to £65.1m in the latest update – gives it the firepower to do so. We worry high expectations will lead to a share price fall if growth slows, but for now, the offering remains compelling. Buy. TD