Member Info for Okehurst1

Hex, speculating but there is a fair chance that Debs ReFi is linked to the Rev B Refi, in affect Debs needed to secure approval to use some of the funds to support a company they only own 30% of, which makes me think could Rev B enter Admin and Debs buys the assets for Rev B to pay off trade / HMRC / square the Rev B RCF ?

The Rev B founders take the bricks and mortar assets they own, Rev B shareholders (70%) get nowt

Harsh on the 70% but that would be a smart deal for Boo and absorb into Debs Beauty with an extra £200M of income and an Omichannel model ?

Pure guess work whilst we wait but Boo has the opportunity to do this especially if they sell web site assets to fund, all of a sudden RevB is worth a few quid on the balance sheet with that £200M of income ?

Hi Crawshaw, agree I was in mid 30’s average sold just under 40p , mentioned I was out at the time and stepped back after the results, I got very lucky, no real profit but it could be a nasty loss

Back in at just over 14p, it’s a punt, I could be wrong though.

SCB, don’t think anyone can argue you are not correct, it’s just fact regarding where the share price was and where it is today, but put that to one side as there may be an opportunity here.

The market may well have an idea next week is Dan’s turnaround plan working ? Ditto what’s the terms of Refi?

I look at this way, £EV is around £325M, they have £60M of net property on their books, KM brand could be worth £40M to £60M, there may be buyers for Boohoo, who knows but give or take Debenhams is being valued at £225M to £200M today by the market

Sheffield which cost £100M plus to automate ? It’s bunce in the mix, there is value to someone there?

Really is all about Debenhams market place capital lite model plus maybe expansion to the high street for Beauty ?

We are all in the dark until the results so it’s at a punt level now but gut feel £200M looks cheap when you consider the above, of course they could miss ( again) but thats the gamble

Kach /FED

Suggest your combined posts look potentially on the mark

Plus.

As Bk says could they sell Boo / or other brands or even KM?

Restructure websites they don’t sell move / stay on Debs Marketplace, the cost savings could be considerable as long as Burnley / Sheffield are $contributing

Bfd/ Hex

Thanks

Thanks Hex

They had £360M GMV in 2024 so £200M Rev ?

Dan said £654M GMV in March 25

Do we think the same 55% would apply to the £654M

So revenue of £360M @ 20%

Assuming the 55% is carried forward of course

Then can Dan gets his £840M GMV @ 55%

£467M forward revenue @ 20% EBITDA

That’s the punt at £200M m/cap today, can he deliver?

If he was at £654M last March he may well be on his way ?

KM in last accounts

* Gross Merchandise Value (GMV): In the six months to August 31, 2024, Karen Millen's "pre-returns" GMV was £78.3 million, showing a 2.3% increase year-on-year. For the full fiscal year ending February 2025, Karen Millen's GMV was £157.1 million.

Revenue:

The full-year financial report to February 2025 shows that Karen Millen's revenue was £68.4 million.

Think they had a target of double digit EBITDA

Even a conservative £60M plus as Hex points out £60M property throw in Boohoo sale and they could wash the face of the RCF if needs be and have a placing

Few ifs/ but it kind of puts administration highly unlikely

Then pick a number for Debs EBITDA margin / revenue and what’s that worth vs £200M m/cap

Defo risk but there could be decent bounce if they come up trumps with the debt restructuring / TU/ maybe asset sale / Management putting their hand in the pocket

For the year ending February 29, 2024, the GMV was £359.69 million. This represented a 65% increase on the previous year.

March 2025, the company stated that Debenhams was generating a GMV of £654 million, did Dan mention £850M target year end ?

20% EBITDA ? Is that possible ?

10% would be a result and half

That’s the value here ?

Taking a super positive view, the company could sell stuff to cover a good chunk of the RCF and/ or management fund a placing then refinance the balance ?

I think Dan mentioned 20% gross margin on Debs Marketplace capital lite, but they have to fund the marketing and platform itself, Dan also mentioned £850M GMV target this year.

Could they see 10% EBITDA as they have alluded to ?

£85M EBITDA would see £Mcap much higher than £200M

Lots of risk but at this level and we can only rely on things Dan has told us but it’s a decent punt at £200M and potential assets to sell to cover RCF ?

Any views on above ?

Am I missing anything ?

Bfd,

What value do you place on Boohoo website ?

Hex/Bfd, thanks

£60M plus £KM has to be close to £100M all in ? Best case ?

Then it’s down to £GMV and margin in Debs ? We think Deb is capital lite ?

Bfd

If we take a positive view

In your opinion could they shut down Burnley, just use Sheffield which is highly automated

All websites bar KM go on Debenhams market place, which it looks like the case

Sell KM, sell Burnley, management placing, debt restructuring, it’s then all about Debs market place and the GMV margin ? The model is capital lite as Dan says

Debs heading to £1B GMV ?

Lot of hurdles to jump but doable ?

Thanks Bfd

Any idea on the value of Burnley ?? Any debt against it?

Take the case they have assets to sell ?

Karen M

Sheffield, could they do a sale and leaseback

The RCF is £125M but rumoured they want £175M

if management take £30M plus general market top up they could fund via shareholders and ‘ extend and lend ‘ the £125M?

Am I missing anything? Cant remember the status of Sheffield?

If management are chipping in towards a placing then the lower price may suit them and MA gets squeezed %lower

As an example they place £30M and an open offer to shareholders of £5M

MA gets a white wash on his £1.65M ish

Management match him / or maybe beat him on equity holding

A chunk of $$ is a meaningful stake with today’s £m/cap

Bfd, agree, what we don’t know is there much head room left of the current RCF ?

The auditors won’t sign off until this is sorted ?

Hi Hex

Reckon the BoD are hamstrung, they can’t get auditor sign off without the debt restructuring which they must racing to secure before 2 weeks today ?

Bfd, maybe they can’t get auditor sign off without the finance restructuring in place ?

As such the BoD can’t say anything, if they don’t secure within 2 weeks today it’s suspension

However they do get sign off, funding secure, decent TU and this could turn ?

Suspension or bounce but they are leaving it late

Mt, good point

What would be considered ‘ good news ‘ by the market

Restructuring of the debt at favourable terms

Management contributing to a raise linked with above

Decent TU/ can Debenham platform see £1B GMV ?

Losses stemmed

Group FCF +

Historical stuff will be car crash but the market knows that

Without a decent TU and visibility of FCF+ the share price will remain under pressure

Suggest the delay is linked to debt restructuring which they require for auditor sign off maybe ? They are taking this one to the wire