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Honestly if you have been think about getting in and you dont think the business will fold, I dont think a better time will pop up to buy in.
Speaking of other brands have we heard the last of revb?
I dont think so, outright takeover planned?
Some good clarity hex, with thanks
still think its comming, the business will start to look attractive again by then and they will talk about tubo charging growth. I'd also say more competitior brands will become financially distressed and Boohoo will want them.
my only current question is how much of net cash is actually stock (a cash equivalent?
trying to get a take on how well the current debt facility will hold up in through FY25
The business was making over double the margin on 20% is more sales in the past which created cash for organic growth
In my view the CEO has done well and set trends followed by ASOS, savage cost cutting being the big one
A slight negative net profit would also see the debt facility largely deleted
Classic rights issue stuff debt management and growth.
But yes still need to figure out where the c£100M in cash went in FY24
Im my view if FY25 pans about give or take on forecast the business will be back on track but still needing to invest/expand. wouldnt surprise me in the slightly if a 2026 rights issue was annouced.
with impaired margins it would make more sense to do a RI versus take on debt to maintain the business in the medium term.
hmmm
Updated results projecting FCF througout FY25 also imply a loss during this period.
Need to review more closely how cash has been depleted. I see a £50M exceptional cost associated with DC closure but surely it doesnt cost them that to turns the lights out and lock the door.
Where did the cash go, thats my question.
As at today Barclays adjusted their profit forecasts, previously the marked FY24 as a return to profit.
Now, Barclays forecast FY25 to be a minor net loss returning to profit by FY26
Frankly, thats quite a wide variance. suggesting og guess work at best.
Doubly so, reviewing most broker views is a great timewaster for those looking for a laugh.
With this being said I think Boohoo will return to profit in this time frame.
It is interesting to read that the £100M reinvented into 'price' hasnt added up to much, and for me this is cause for review as to how elastic the sales model is.
Its also pause for considerations that a whooping c£130M of cost has been crowbarred out of the business whilst still depleting c£100M cash reserves. This implies a greater cost issue.
Has anyone got clarity on precisely where this c£100M of costs accrued from?
'next leisure boom'
rofl
the whole sector is in collapse
increasingly less money to be made from burgers and pints
rolling bankruptcies over the next 5 years more like it absobed my laregr groups follow my a major collaspe
the simple maths doest lie
lights out
Unravelling just like McColls
cashcall to preserve the business as a going concern to attract bidders through the sale process
then company entered a CVA and shareholders got wiped out
Just skimmed through the HY24 results a couple of other comments:
- pre-tax profit appears to be in line with projections
- underlying £75M capex spend with further spend intended supported by cost savings
Would be say banks would view this favourably? as in the business is fundamentally massively profitable other than boohoos intent on buying DCs etc?
Near term for me BofA called it right in commenting the current share price implies the business is not a going concern, and, that when this becomes clear the share price will re-rate. In my view 60p easy on favourable news, and complete collapse on a failed return to profit. At this stage I think Boohoo will return to profit. And I think we will find out the answer to this question fairly soon. barlcays profit projections indicate FY24 driving the most profit growth.
Desperation is a reliable thing, if you take someone's £100k, destroy most of it, then ask for another £10k on the basis it might help restoring value, many will sign up to that deal.
Form an orderly queue please.
McColls
IMO:
what I will say at this point is that I find the price action a bit revealing.
Sky news has had its finger very very close to the pulse on finance matters to the effect that it very well understands what is going on in recents UK restructures.
the names mentioned, the market cap, and the price action in my view a sale is on the cards.
but the basis of the sale would be that new money has a higher creditor ranking versus standard equity.
my guess is that the company will enter a form of CVA and exit with new ownership, total lower ranking shareholder wipeout with enhanced value for the new creditors who supplied sufficient liquity to enable a sale.
if this werent the case the share price would have rocketed much much more of the new money arrangements.
I still think these are valuable brands to a much larger group with economies of scale.
£10M cash call
market cap 'little over £1M'
'If the restructuring plan fails to gain sufficient approval from creditors, the only viable alternatives for the company would be a sale that would ascribe little value to its equity, or administration'
Excellent news,
Aged like fine wine.
Aged like fine wine.
Revenue isnt the problem
many high volume sales hospitality locations are being closed up and down the country.
Why? No profit.
I foresee a decade of failure for smaller / medium sized companies in the hospitality sector with only the very biggest with economies of scale surviving, and even they are in really trouble, they are running out of options to save costs.
many businesses are now have to restructure reletively senior retail management roles into minimum wage positions. its desperate stuff, and the hospotaslity sector is running out of ways to cut costs.