Member Info for Okehurst1

I like to focus on COGS

Boo have reduced H1 by 25/10/10 %

They didn’t tell us …. The suppliers did

It’s such a nuts number but M&S / Next have seen big reduction / bottom line affect via COGS

We don’t know with Boo as such hence the question mark ?

You place your bet / take your chance or abstain like Pedro based on what data that is out there.

We will soon find out who is correct

boo took £50m of people / other costs last year

more this year as they automate blue collar work

240 suppliers turkey

bangladesh/ ****stan 000’s

south american suppliers for usa market

u.k. market for production is minimal

Few thoughts

Just 10 companies on AIM use Jeffries/ HSBC - Aston Martin being an example

Boo have £300M of cash on hand vs £450M m/cap it’s not for a raise

Pure guess but the Boo BoD are looking at a full premium listing and splitting the top role, the timing is ripe.

Hi Hex

Just on a capital event to kick start Boo - few thoughts

Appreciate there is a strong counter argument to a share buy back, I do get that, however a sale/ leaseback of the unencumbered real estate could bring in £150M, the rent could be £9M p/a and arguably we don’t need the RCF which will be at a higher rate than the property yield, Boo may find themselves with annual cash saving? It’s possible?

Boo have stated they are targeting 8% EBITDA medium term, -big IF - if they can get to 6% 2024 they are churning decent cash with the heavy capex out of the way -£20M maintenance plus phase 2 USA, maybe allow £40M?

Boo have the fire power with a sale and lease back and IF they have visibility on the 6% to buyback 10% of the shares (£50M)

we then benefit for years to come

Spilt the dual role at the top and move to main market with a premium listing and get away from AIM

The under 30’s still living at home and over 60’s with mortgages paid off seem to be doing ok? Plenty of jobs for the first group and pensions for the Boomers

The middling group 33 to 55 seem to have been taking the brunt on the mortgage element but in general now enjoying a pay rise in line with inflation

USA whole different market / data, inflation heading to 2% and the 30 year mortgages fixed below 4% for the masses

This month will be the first month in years the U.K. has higher wage growth to inflation rate.

USA inflation is heading to 2%

Low unemployment

Peers reporting decent TU’s

The data is moving the way of the Longs whilst we await our TU

Boo have £300M cash in the Bank / in hand as part of £400M net assets

They don’t need more cash ideally they start thinking about returning excess cash to shareholders moving forward

M&S say

‘There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses. Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations’

This along with wage growth announced today

We just need inflation figure to fall next

FT snippit

‘Marks and Spencer has upgraded its annual profit outlook thanks to robust sales in its clothing and home and food businesses, sending shares in the UK retailer up more than 7 per cent.

The company said like-for-like clothing and home sales were up more than 6 per cent in the first 19 weeks of its financial year, with strong growth in stores, while food sales climbed 11 per cent.

“We now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations,” M&S said on Tuesday. Its current financial year runs to April 2024.’

The Times

‘Official inflation numbers released tomorrow are due to show a large drop in consumer price inflation to 6.8 per cent in July. That should mark the first month in which earnings growth outpaced prices since spring last year’

Data moving the right way for us Longs, patience required.

T4G, no prob.

I am Long Boo, however I agree with Hex’s post earlier

MM’s can move stuff a penny or so here and there when they have given ‘ protection ‘ on an Offer price but that’s about it.

For reasons previously discussed Boo is off 90% from its high

Touched on this last week

Boo didn’t purchase the 1M sq/ft unit in USA it rents the site, Boo is a on line fast fashion retailer not a property investor

If Boo sold / leased back its unencumbered property and raised £150M cash paid 6% yield bought back 10% of its stock

(£50M) and kept £100M cash in hand on deposit that’s the end of Shorts who know Boo have fire power to buy more if they continued to Short - they would move on

It’s earnings enhancing day 1, Boo would be hard done to get a return of that magnitude on £50M

Credit insurance / suppliers would rather see cash on the balance sheet to a piece of real estate, EBT holders see a rise in the value of their holding and Boo BoD stop MA building up a stake on the cheap and giving them grief demanding BoD seats

What the cost ?

£9M rent and maybe squeeze £4M income on the £100M, net £5M but the value of the share has increased permanently by 10% alongside the above?

It’s a no brainer capital event to me that re boots Boo, who knows with say a £1 share price what corporate deals they could do ?

MA needs volume, we had some week before last and Umar sucked it up

The BoD carry the risk that Ashley takes a controlling stake on the cheap and forces changes that may not fit with their plans?

Far better to try to be in control of events?

Either way the RNS this morning indicates they may feel they have something to promote to the market

Guessing …

Are they considering splitting the chair / ceo role ?

Then move for a full listing ?

Alongside the business plan coming together?

Otherwise Ashley just keeps adding until he gets a controlling stake ?

Yeah, the BoD are certainly focused on turning this ship around, must be feeling confident they have news the market will like.

T4G,would take that return - weighted evenly :-)

Hi Joe

Decent first post

Without doubt there is risk with Boo, personally I think it’s a fair risk / reward ratio at these levels for us PI’s but suggest don’t over stretch yourself in Boo just in case.

Pedro’s view below is valid - we are news dependant for a rerate whichever way

Ditto Wolf, until we get that news there is a question mark ?

I am in relatively heavy at 35p average and only time will time will tell if I have called this one right, gut / looking at the data says I think I have a decent chance but being honest I don’t always call it correctly but I am in position and waiting like we all are for the next RNS

Good luck.

Nb we have 18M on our App

From a demographic point of view suggest Insta is a good way to measure user base

Boo 12M

PLT 18M

Next only has 2.5M across all categories - surprisingly low I thought

Daytrades wife fits into the Next /M&S demographic who tend to shop in person ,nowt wrong with that.

My other half buys all on line via Insta / Tik, boils down to demographics and target market

Automation is also key - touched base yesterday on this

Boo is clearly focused on social media / influencer driven marketing across all brands, click to product ,back to test and repeat post Covid and automate the supply / distribution chain so they can scale up and keep margins competitive

They also now have a controlling stake in RevB and USA/EU large chain stores and as such have a hybrid Omichannel presence

Boo is set up to give it a real go