Member Info for Okehurst1

£50M FCF positive H2,

£1B Ingenuity growth - whale landed whoever it is

2000 staff cuts , £130M total cost savings

Margin improvements

£600M plus cash at hand

FCF positive H2 - £50M Didn’t see that coming

£600 + cash in hand

2000 staff reduction

£130M cost cutting over all with £30M this year

£1B - yeah £1B - being added to Ingenuity GMV

Binning non core loss making ops

Capex to be cut - looks that way

Margin heading to 9%

£50M FCF H2

2000 head count reduction

£100M cost savings with further £30M to come 2023

Cutting back capex

£1B additional GMV for Ingenuity 2023

So the 3 core divisions doing well

Lots of cost cutting

Looks like a chunk of non core going

· Successful completion of the Group's divisional reorganisation driving continued profit progression through greater divisional cost transparency, the removal of duplicated costs, procurement and payroll efficiencies. Group-wide headcount reduction of c. 2,000 employees following elevated investment over recent years, achieved through managed attrition alongside continued recruitment of digital talent.

‘Free cash generation2 of c. £50 million in H2 2022, driving strong balance sheet and liquidity with c. £640 million of cash and available facilities at year end’

WOW !

10 trading days ago we were 46p

Up 46% since then

It’s been a good run/ start to the year - ASOS 37% up same period as a comparison

£175M to £200M EBITA 2023 , top of range we will be at just 4X to sector average 12X at current m/cap, that’s £1.75 a share

£115M 2022 7X historic

Plenty of scope to bag from here even without a big corporate deal

Capex cut
EBITA Margin 7%
FCF +
10% growth min

We rerate over £1+

Fingers crossed

Tbf. Golden is spot on

It is a vanity project that has been binned - let’s not forget we would have been putting skin in the game for the property, it wouldn’t be 100% LTV

Really good news …. Let’s hope for more tomorrow

2024 EBITA £265M +

Net operating cash £165M

Cut capex to £65M and they get their serious FCF +

II Shorts will be all over this tomorrow, any sign of FCF + and they are done

Makes so much sense, keep the market happy

£100M is still serious capex for 2023

We hit £200M EBITA 2023 - we need 7% margin for that and 10% growth before cost cutting

And they cut capex from £130M to £100M they guide to FCF neutral

Net operating cash flow would be £110M tops less £100M capex -
FCF positive £10M

That’s the Shorts finished at that point

Top piece of research Sole trader

Let’s say they were on a 60p to 70p/ £ loan

That’s a £30M to 40M cash saving - I am not an accountant but suggest it’s classed as capex as it’s being used for the business to being leased to a 3rd party

Gets them to FCF neutral 2023 - soon see tomorrow egh ?

https://www.accountingweb.co.uk/business/financial-reporting/frs-102-investment-property

Steve … who cares

We couldn’t have done it without them

It was a gift over the Xmas holiday

When we had the September update we dropped daily for 2 weeks right up to the 4.30pm close the day before and had a brutal drop on day of RNS

6 weeks later we had a trading statement, rose for 2 weeks before shares jumped on day

Trend says we are ok tomorrow

Heads up to the Shorts …

Agree that point, that will be helpful - come April

Good debate everyone

Hi Pearl
No argument on your point that Ingenuity has helped Nutrition & Beauty get to this point

Taking the view the world has changed and market demands FCF + and we have £300M of debt

Ideally moving forward both divisions pay the market rate to use Ingenuity services and they find a different way to fund Ingenuity

How big could Nutrition be if it could reinvest some of its FCF back into itself ?
Ditto Beauty ?

As is all free cash is going into Ingenuity which isn’t growing