Member Info for Okehurst1

Hi Hex

Apologies didn’t fully explain myself, they lumped into capex expenditure when explaining where the cash was spent

forget what page in accounts, know it’s not important where it sits really, but think we can say RevB looks like it could be a nice return on the capex invested in there.

All in last year and this year they will have invested almost 42% of the current £m/cap back into the business via capex spend, nuts how cheap this share is.

Investments in associates

During the year, the Group made an investment of £15 million in Revolution Beauty Group plc, a leading global cosmetics brand. The investment gives the Group a 26.48% stake in Revolution Beauty Group plc. The investment was made to support the growth of Revolution Beauty Group plc and to explore potential future opportunities.

Page 98 I think

Hi Wolf

In capex for last year

Yeah mute point I guess

They have in at cost (£15M) just under 18p average

The capex spend Boo have invested to put their model together is nuts compared to the enterprise value of the stock today

I’ve no idea why management would be bothered being on the market in 12 months time at even 50p - assume the shares ‘ only ‘ jump 47%

Interest rates will be dropping by then and going private via PE would be a smart move at £1B (75p) and the BoD enjoy the bunce going forward

Either the market re rates Boo up 50% or PE route maybe 125% upside from 33p today, whichever way you look at it Boo really is a decent punt if you can stomach a bit of risk

BOO has £400M of net assets including near 30% of RevB and mixture of websites

An automated robotic fulfilment centre in USA & Europe (U.K.)

and £1.7B of sales , $400M based in USA,£120M FCF positive 2022 and has no net debt and will invest another £85M this year into its capex / infrastructure

It’s ripping cost out of COGS

I think we will look back at 33p in 6 months and 12 months time and recognise what a bargain this was at 33p

Same as looking back at THG at 40p just months ago, hit £1.17 - a double bagger in 5 months at its peak -and still 100% up YTD

There is a doom loop in the U.K. press which creates opportunities for risk on investors, big profits are going to be made on Boo at 33p but you need patience, look past the noise

Not without risk at Boo but it takes 20 years to get the returns on a bagger on the money market, the Shorts will bail here eventually and they do the initial heavy lifting for us bottom fishing longs

Building up steam by the looks of things, markets always look ahead, Nasdaq up 40% YTD and reversed 2022 losses with general stocks ‘gapping up ‘

A wall of $ money on the sidelines and in short term fixed income plus fund managers heavy cash and now feeling pressure to buy in, Short Equities indexes are getting crushed.

https://www.bloomberg.com/news/articles/2023-06-30/stock-market-rally-that-shocked-everyone-is-finally-broadening-beyond-tech

Level not too sure on that one ;

11.11

(1) If, at any time, shareholders holding at least 27% of the issued ordinary shares of the Company request in writing that an extraordinary general meeting of the Company be called, the directors shall forthwith call such a meeting to be held within 21 days of the date of receipt of such request.

(2) The notice convening such a meeting shall be in accordance with Rule 11.1.

One way or other 3 weeks by the looks of things

Strange situation, the RevB BoD who own 3% of the equity are in an open battles via RNS’s with 58% of the shareholders?

One group fraud, the other, different agenda to their own

Bob is putting up a staunch fight and guess rallying the troops every morning

https://youtu.be/skrdyoabmgA

Detailed RNS, quick snippet

The Company is proceeding to call the general meeting requisitioned by boohoo in the coming days, at which shareholders will have the opportunity to vote on boohoo's proposals’

Looks like it comes down to the 32% and will they vote /can they vote ?

Ball back in Boo half of the pitch, onus of them to explain what their plans are for RevB …. Or not if they think they have the 32% on board

## typo RCF

Nb if BOO took the £300M off deposit tomorrow and repaid the £300M RCF the NAV would still be £400M it wouldn’t go up £300M

PP ,

Broke/Smoke is correct, check out the audited accounts just published, it’s £400M - give or take the share price/ Mcap

Boo have of course drawn the FCF so they have £300M of cash which is of course debt but the £300M is sitting on deposit not being used - it wasn’t up to 6 weeks ago as we had £5M net cash in the bank if that makes sense

Be like borrowing £30k off a bank and putting the £30k on deposit, your NAV doesn’t change

Boo have advised cost of capital will be £12M this year

Few thoughts

Think the post from Hex is on the mark - MM’s just make a market, the market makes the price

I would look at COGS and Boo squeezing suppliers to give up a chunk of their bunce - not an exact science but we have

Minus 25% minus 10% minus 10%

COGS is our biggest single line cost that was 13% higher on cost of goods due to Covid /raw material / transport which have all fell massively

£200M plus to go at here

I reckon Boo will capture a good chunk of this - 50% possibly all in - it’s not rocket science stuff

As such I ain’t too bothered if we fall to 30p I will add to get the average down.

50% to a bagger from here i think if you can afford to buy and hold and can cope with the risk / reward

Doesn’t look like Boo giving up on Revb BoD, unless the 2 ex directors can vote with Boo it’s touch and go will Boo win?

Bob outflanked them once can he do it again ? Maybe ?

Hi T4g

Was trying to bridge 2020 Calendar year if that makes sense rather than March to Feb so to speak due to Covid

Maybe just go with accounts revenue it’s simpler

Yeah agree your points

£220M of cost savings on COGS IF they can get back to Pre Covid cost of sales percentage of 37% from 50% last year

Helps us look at why BOO have been aggressively cutting costs in this area

If we look at 2020

Revenue was £1.585B

COGS. £586M

37% cost of sale

Due to Covid COGS jumped to 50% cost of sale

Guessing but reckon BOO targeting getting back to 37% from 50%

13% of £1.7B is £220M

Not saying they get the lot just identifying where a good chunk of gross profit went - all of the bunce really in COGS jumping by 13% of sales

According to BOO accounts

BOO COGS for 2022 was £941.7M

Up 18% from 2021

They identify

Raw Materisl Cost - down 2023

Distribution. down

BOO have now taken 25% plus 10% now another 10%

Not sure the market has fully absorbed what this is worth in

$$$ terms against £941M

Https://www.drapersonline.com/news/boohoo-group-demands-supplier-discount

Could RevB and BOO compromise ?

BOO nominated CEO to come on Bod

Bob remains Chairman - Bob has earned his respect

Surely that works for everyone?

Hopefully BOO don’t launch a Bid for RevB and it is just BoD control they are after - last weeks RevB TU indicates they can tick along without new cash

BOO have called for what is an EGM ? As we have had the AGM?

They won 74% on the day ,will they over 50% next time around ? Interesting comments of RevB inferring to confidential agreements with the 32% ?

2nd leg still be played

Personally am pleased RevB has re listed, BOO won the AGM battle but lost afterwards

Their comments below are telling on their intentions

‘Action following the AGM

As it turns out, the board's apparent desire to disenfranchise shareholders did not stop after the AGM, when it was announced that the sole remaining director, Jeremy Schwartz, had promptly used his powers to reappoint all of the directors removed from office at the AGM and in addition to appoint additional directors chosen for appointment by those same directors before their removal.

The effect of this is that Revolution Beauty's board of directors is entirely comprised of directors who have appointed each other, whose appointments have not been approved by shareholders and who (in the case of the chairman, the CEO and the CFO) were validly removed from office at a duly convened shareholder meeting despite the board's attempts to prevent voting at that meeting.

boohoo fails to see how a board comprised entirely of directors appointed by each other, the majority of whom (including the chairman, CEO and CFO) have attempted to prevent shareholders from voting on their reappointment at an AGM, can claim to be acting in the best interests of shareholder’

Bob lost the vote ,got kicked off the RevB BoD

74% on the day voted against him but he still got back on

You have to hand it to him he played a blinder