Member Info for Okehurst1

Good for us PI’s though IF in cash

They are pretty stupid Rony

They bought £90M at £1.60
Sold at 17p

Doing the same at THG and other stocks

Getting hit by redemption calls they need the cash

No other TR1 from the other large holders is interesting

Not often us small PI’s get to feed at the II carcass

Jupiter are getting mauled

After close TR1 inbound had to be

Look at ‘ search ‘

Makes up 53% of traffic

Customers buying in store then buying direct ?

Nice steady rise each month in web traffic

70% retail stores
30% E-commerce

# 8100 reviews apologies

8600 reviews on trust pilot

77% ‘excellent’ and some decent commentary

£50M m/cap amazing opportunity for us little guys

https://uk.trustpilot.com/review/revolutionbeauty.com

Interesting bit of data

Medichem no longer taking 3rd party orders

Capacity fully focused on supplying the parent Co

Considering they had 149 staff at the last count and annual revenue is heading to £220M at group level … that they are utilising all the capacity in house

http://medichem-int.co.uk/

If other notifiable II’s were selling then it would be a concern

No .5% Short positions

No TR1 ( as yet) from other II’s

Looks like all on Jupiter, fish in a barrel picking up a decent stake for a £50M m/cap

Jupiter have given us a seriously cheap entry price and liquidity for the future … perfect

What an opportunity all because of Jupiter, they are all over the place at the moment

Worth noting that none of the other II’s have sold sold down below a percentage point

Medichem is key to the Rev B business model and Tom who runs this important division sits on the BoD with a large equity stake

R&D,Bulk Manufacturing,Warehousing and distribution, whilst Rev B provides the marketing and Sales skills ( CEO background )

Rev B can offer retailers guaranteed stock at fixed prices with just in time delivery, hence 70% of our revenue is global retailers

Some of the end users then purchase on line and online sales are now 30% of total revenue

The other advantage is we don’t need to spend a fortune on marketing direct to consumers, the retail arm drives the online sales

The audit issues have to be mainly around the value of Inventory in this division, we may end up with inventory as high if not higher than the current m/cap

That was my calculation running through the accounts / estimating the GP, it was based on raw numbers so I could be wrong, if I am correct I double bag from here .

Medichem is certainly the’ ace in the hand ‘for Rev B, we can assume internal ‘revenue ‘to the parent co is heading to 3X below, maybe higher, this is key to the GP moving from 40% to 60% and being in control of a vertical supply chain.

Suggest the audit issues are mainly around inventory connected with Medichem/ products in storage, Rev B don’t manage the goods it appears they just market / sell.

IF the inventory is high - that’s what we want to see - we can turn to cash.

Medichem is a long-standing supplier of haircare and skincare products to Revolution Beauty, manufacturing all products from its UK facility. Medichem's end-to-end operations include an R&D laboratory, bulk manufacturing, warehousing and distribution, and employs more than 170 people. During its last financial year to 31 December 2020, Medichem reported audited revenues of £13.4 million and profit before tax of £1.6 million. Given the strong year to date growth in Revolution Beauty's haircare and skincare categories, Medichem has continued to perform well in 2021. Medichem has a limited number of customers other than Revolution Beauty (which has contributed in excess of 90% of Medichem's revenue in the calendar year to date ‘

Bob, I think your point on the £100M m/cap and Rev B falling below that caused the investment committee to action a sale - we don’t know what the equity limit is of course and pure speculation but 10% ‘ feels’ like the number

I could be well wrong mind but that’s my gut feel

£55M m/cap … it’s crazy cheap

Noticed TR1 for THG

Buy High Sell Low

If you bought / sold the opposite trade to Jupiter reckon it’s a fair call, pity the poor investor who leaves them to manage their money

So 18p looks like it was the bottom

@55o - 60p

Cost them £45M if the II’s backed them to take this private

Tom takes a payment plan on what’s owed, he’s one of the biggest shareholders he won’t want a haircut on the shares

Use Inventory to raise cash plus £20 notes in hand

‘The Acquisition constitutes a related party transaction under the AIM Rules as Tom Allsworth, Executive Chairman of Revolution Beauty, is the sole shareholder of Medichem. In addition Medichem has four leases for properties with Walbrook Investments Limited, a company controlled by Tom Allsworth, with an aggregate annual rental of c.£0.2 million (the "Leases").’

Put aside Jupiter selling down … how many II on list below have been shorting ?

We saw this with THG recently via Form 8.3 declarations

They knew Jupiter would have to sell down - investment committee /indices driven

Great for us little guys IF in funds

Justthisonce

Sorry about your significant loss, understand the pain, reckon we all have all been there when investing, from £500M at IPO to £55M is a big fall in value

I agree there has to be short term funding sorted here but suggest that’s doable IF the inventory is high, no worries at that point for thanksgiving / Xmas as well - we need to see that £number and the plan to turn the stock into cash

Re H1 loss but H2 back in profit at EBITA level, suggest that’s the cost of bedding in the USA acquisition bought out of chapter 11 for £3M

They could seek to extend the monies due over the next 3 years regarding the manufacturing plant?

We can assume the BoD are exploring all avenues, we will soon find out

Justthisonce does highlight a few fair points
Rev B didn’t actually benefit from a substantial working cash injection at the IPO they only enjoyed £20M - they paid off £90M of debt

Being fair to the BoD they have actually done well to potentially get revenue to £220M this year

The BoD hold a controlling stake in Rev B, suggest it’s not in their interest to dilute, they have £19M of funding plus inventory ? This latter is a key number, we may have stock that matches / more than our current m/cap ?
Plenty of ways to arrange additional finance if that’s the case

So from say £40M cash spend they have acquired a LA based beauty Co £3M , possibly £11M towards the manufacturing acquisition and funded the growth of the business to (potentially ) £220M annual rev with £18M to £20M EBITA , 50% of which is ex U.K. and they stand today around £55M /£60M m/cap and they may have inventory matching £ m/cap
today

I hadn’t thought of the Management buying out the free float via taking private, that’s a possibility I guess?