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Bad news on Ocado JV sales, but good news as it means the bonus targets not achieved.
Mks can hold onto the outstanding 150m£ for now
The upside to Ocado JV is Mks won’t be paying the outstanding sales bonus target! Yet.
Still 150£ m outstanding from the initial 750£m from Mks to Ocado.
For me it’s not a question about who was correct, in fact it’s sometimes better to make errors, providing we learn and move on. Crikey I make enough errors myself!!
I just found the whole 360 degree turnaround in strategy amusing!
One, avoid blind loyalty.
Two, hold a balanced portfolio of equities and keep reviewing them against the reasons for investment.
But what does an old codger like me know ! I should be so lucky!
It’s not often I get time to read these boards, however, when I saw the message below from Value I very nearly required medical treatment as I had thought one’s inside was about to burst with jollity.
Value for years had preached on this board ‘profits’ and tech companies are not compatible, and one must have patience and wait until Tim had taken his bounty first before any scragg ends may at some point be available for others.
Time is a wonderful thing!
Valueplay
Posted in: OCDO
Posts: 2,717
Price: 788.40
No Opinion
RE: Trading statement17 Jan 2023 08:19
Yet another downgrading of sales guidance from Ocado retail today. The 3rd downgrade in the past year. No profits in the latest trading statement. No profits forecast for first half of 2023. Customer basket size continues to fall..
The appointment of Cheryl Potter who helped build the PE firm permira is a significant.
https://www.permira.com/portfolio/our-portfolio
‘Addiction’ is probably the key word here Chilting.
Good to see the increased PR in media as mks approach a return to dividends, and start a more aggressive store opening program.
Most of mks institutional investors are in US, hence the more supportive behaviour over there.
Mks is not a day trader equity now, and its leadership is looking for stability over the much longer term.
The dividend return and 400m debt balancing act together with speed of full line store renewals is important in releasing value for shareholders.
I expect 2023-2030 will still be a bumpy ride for Mks and retail generally as Omnichannel strategies fight it out.
The environmental issues must be integral and reported the same as pre tax profits etc Investing in those businesses who take environment target’s seriously is critical
Gist can haul orders to cfc’s easily with their massive geographical cover which would only fill vacant trailer capacity.
JJ is correct, and more back clothing catalogue items advertised on Ocado including sale items as and when-it’s another area of growth and I know they are looking.
Happy Christmas to one and all.
Looking forward to January trading update!
Time is remarkable!
Last time I was here the cheerleader value was energetically waving large pompon’s and wouldn’t have a word said against the Ocado strategy.
Value supposedly watched this equity reduce from 29GDP to 5 before selling? Or something similar.
Now, after years is still on here (like soap opera) playing a completely different character.
This medium has very little, if any impact on sentiment or equity sp, so why would stay on here for so many years ?
Bazaar! Merry Christmas one and all!
I heard yesterday Chilting that is the case.
Couldn’t be more phlegmatic. Waste of time.
Consumers in US Will understand ‘Thread’ much more than UK.
Personal shopping is much more widely used in US, people with no time or hate shopping this will be perfect-it’s not caught on in UK because it’s still not in mainstream. Not to be underestimated.
Making full use of the tech these guys have full time will dramatically transform much of what shoppers, buyers/supply chain do.
It’s an awful lot more than that Chilting!
It will change the way the company communicates internally and externally, and the way the company gathers and uses info.
Strategically it’s a massive leap!
The only problem is we don’t know how much! However we do know the revenue costs will be heavy with 30 IT people!
??? Don’t get the point lrry.
I saw the post elsewhere and thought it might be of interest here.
Professionalism doesn’t come into it, I was contributing to the board, that’s it.
You owe something to life and others, conversely it owes you zero.
Don't question others so called professionalism, do question your sanity.
I was joking of course Chilting! In many ways Mks has returned to its place as a bellwether of retail.
Mks demographic customer base is becoming fairly wide in its appeal but at its core are middle class high earners.
More than preoccupied this year with other pressing matters but I caught sight of the HY numbers and although disappointed at the food and the bank kpi’s I understand why, and circumstances largely beyond control.
Mks is rebuilding a business of depth and over time will create solid shareholder returns no matter where investment might come from.
It’s great news ! It means M&S are the lighthouse for the retail sector! A beacon of light!!!!
Encouraging From a LfL perspective with Andover etc as well Chilting! The JV should get significantly more volume over last Christmas!
That sounds very promising Chilting! Is Bicester open yet? Will it open for Christmas?
Get a chance have a listen.
There’s a clue about 2023 ebitda
https://offtolunch.substack.com/p/episode-1-archie-norman?utm_campaign=post&utm_medium=web&utm_source=direct