Member Info for Okehurst1

Hi Adam /Welshy

I mentioned to Adam yesterday I am still (relatively )big invested for me. - thought only fair to explain my position

I had been watching Rev B since the IPO and following the business on social media / retail stores and studying the accounts, I only became a shareholder after the 1st RNS
3 weeks ago then a week ago took a plunge ( mentioned at the time) at 8p to get my average to 14p

I then sold 50% average 28p to be in for free - I had a lot of relative cash invested

I had expected we would move up to 35p /40p and I planned to hold the ‘ free ‘ stake till 55p /60p- that’s still my game plan, I still have a heavy stake here

I had no idea the share price would fall to 17p again so quickly
on Friday but was always mindful it could get hit on a delay to the results but excepted that position.

The share price has to get back to 30p NAV after the results plus the value of the £18M EBITA, hence the 55/60p were we where 3 weeks ago, I doubt the market will give the BoD the benefit of doubt above 5X EBITA , it’s that or a takeover at similar price range

I’ve 750,000 shares today, holding them now to whenever the results are released/ hit my target , fully agree there is a risk but I wouldn’t have made money this week without taking that risk the previous week.

With £100M net assets this is not an administration job, it’s a business that knows it’s market, that had a big spurt of growth to £200M very quickly and the ex FD didn’t have the systems in place to manage / coupled with BDO short of staff.

Good luck with your own trading strategy and thanks for sharing links / data btw, this is the BB’s at their best ,

Unhooked
If you can stomach the cash being tied up for a few weeks this will reopen higher, that’s the downside.
I have accepted that position, prepared to wait

It’s worth studying last years accounts
The business generates all its gross profit in the 2nd half
last year it was £12M - the info is all there

The £18M looks well achievable now they have their own manufacturing plant and sales have increased , hence the 60% gross , look at numerous press reports this week of their beauty products selling like hot cakes, product wise these guys know what they doing/ know their market well

No idea on the price next week or up to the 1st Sept but post numbers out we get a good jump

HH well balanced post

My take

Rev B is not going into insolvency, they have £100M net assets generating £200M Rev - 55% of that outside U.K. - their gross margin will be 60% plus after the purchase of their own manufacturing plant

The issue for the BoD can they convince the II’s who control 40% plus of the equity that an offer from BOO/ other, is a better deal than supporting the incumbent Directors?

If they can pin it on the FD that left in May and confirm the new FD has a grip / Cash is good / £18M EBITA then the share price reopens closer to where is was over 3 weeks ago before first RNS

Worse case it doesn’t and we get a Bid

It’s win win for us PI’s at these levels, suggest it’s going to surprise traders just how good the upside will be at that point
3 X from here

Good post Onsolid

Still got a good chunk Adam, invested here.

Tbh I thought they could avoid the delay and gut feel it’s a BDO resource issue for the issue at this point but not helped by accounting issues from previous FD

Let’s be fair about this, the BoD have not helped themselves here, operationally they have grown fast but obviously the systems were not in place to keep up, however the business itself I think is great value at current levels and with a strong balance sheet to support it.

The II investors will support the directors but IF a Bid comes in post audit sign off and depending on the size of the offer / terms then the II’s could well look at in more detail?

I did mention this last week at 17p being a ‘ win win’
results out on time share price jumps, BoD miss date and shares suspend the Company is exposed to a takeover ?

Suggest we sit on the latter after this afternoons RNS

The ReV B BoD are sitting ducks now

They have demonstrated they can grow an international company but they can’t control it ?

Time for them to move over and a more experienced team take over ?

Unless they can convince the market/ II holders it was the fault of the FD who left in May?

Why would BOO spend £12M to £10M on equity to buy out of Admin ?

Their stake /shares are the same colour as ours, however had they spent that money on buying the debt, which they didn’t , it would be a different conversation

The BoD can’t put Rev B into administration, it doesn’t work that way, they have £120M assets vs £21M debt

It looks like the issue is resource on the side of BDO - IF it is resource it may mean the stock is suspended for a few weeks though - at best.

This doesn’t mean administration it’s just the AIM team rules, not ideal but anyone putting a reasonable Bid on the table is going to have a chance getting the support after this fiasco

Did BOO take the view they would position themselves if there was any further dropping of the ball by the Rev B BoD?
Grab XX % of the equity and move for company once results out, going to be hard for the Rev B BoD to mount a credible defense ?

Just at what price and how do BOO Fund ?

Reckon they must have had a margin call in the last 90mins

Touched base on this a few times

If as expected they suspend then the management have lost serious credibility, BOO have put themselves in a good spot to nick this one, worth noting they have bought shares not the debt - which is £21M vs £120M assets ish

BOO are sitting as we are sitting holding equity as are the USA hedge fund who bought in this week
Will BOO add to their 12% ? Ditto the Hedge fund ? Soon find out next week

HH

100% BOO made a clever trade

Gone blue

Yeah … not prepared to chase the price up, it’s very good trading
They are picking up off weak hands as they go

You have to respect the CEO of BOO as a entrepreneur/ businessman, they are hoovering up the shares at discount to NAV and getting the business of Rev B for free

Class bit of trading

Worth noting

The USA hedge fund are using a synthetic mechanism, the other side to that trade - counter party - will have to part buy in the market to cover

There will a lot of technical trading going on behind the curtains.

We little PI’s just sit back and sit on our hands

£100M Nav
£200M Rev
£18M EBITA

It was a joke price at 17p it’s a joke price 26p

It was only 3 trading days past we sat at 17p and a week ago
7.93p!

We were 55p 3 weeks ago

We could bag from here post results out / or Bid

Just took another slug this morning, no volume on the Offer but MM’s would take all my current holding when I did a dry run

Let’s wait and see…. MM’s playing a crafty game
You could see it last Friday at 17p UT that they had been accumulating for clients all day and Thursday afternoon

It’s same rerun now, banking the shares and then letting them go in chunks ,they will have orders at set price caps

Difference being thry are now over the 3% so need to trade stealth like - as they did yesterday
I’ve been impressed how BOO have handled all this, it’s a really smart deal for them if they can get a BoD seat

Either way accumulation stage to get the shares from weak hands