Member Info for Okehurst1

Pedro

BOO will do 4% on £1.7B less finance charge let’s say £12M as BOO guide

Rev B is on top but we don’t know to what extent they will own moving forward

They grow the partnership with Debenhams by default

COGS being slashed by 35% H1

Admin / distribution cost saving are material

Test / repeat back on ex covid

Non of us little PI,s can move the share price, am just interested to hear the opposite side my trade and make their case with numbers, would be helpful if you could break down the margins and FCF for your bear case from these low levels of 35p

Want to see if am missing something

Looks that way ?

Big Question

The end of Shein in USA ?

Europe to follow

https://www.reuters.com/business/retail-consumer/china-e-commerce-shipments-would-lose-us-tariff-exemption-under-proposed-law-2023-06-14/

Daytrade, on the point of cash / debt as Broke says think your out on your call - no prob being wrong btw

Cash isn’t an issue with BOO, I agree sentiment is poor because of past errors but it appears they are turning that around, USA distribution centre / RevB, test & repeat back etc

Zero debt, low cost of capital, 47 days working cap, m/cap = NAV

BOO is a decent punt from here on a risk/ reward ratio

Welcome back from the dark side Terry

Unless BOO needs to raise £££ for an acquisition then with £330M cash at hand and zero debt there won’t be fund raise the company doesn’t need the cash

As Wolf pointed out yesterday / BOO said on conf call, there is execution risk with new USA 1M sq/ft automated depot but BOO know the USA market they generate $400M @ 58% gross already - our best large market for margin

What’s the upside for the Shorts from here, it’s slim pickings?

Hopefully a positive TU and clarity regarding RevB and we get a technical bounce up

Wolf, agree with your comments below on BOO btw

But PP it’s what you do with those profits

BOO invested in RevB example ditto in a 1M sq/ft automated fulfilment centre in the USA and Sheffield

They could have given the £91M less cost of finance back to investors? They can do that I guess after this years £85M capex which they tell ex maintenance they are done

I just need to show how they are losing cash ? What am I missing

My view Wolf, cash is King we generated £120M and had none cash write downs

Even this year we generate £FCF + before capex after interest

Worth noting £15M of last years Capex was on RevB stake

and we have no net debt - £5M plus cash

Only asking PP in case I am missing something

If you can break the FCF calc down much appreciated- is a genuine question btw PP

Nb let’s look at FCF before capex maybe that’s the best metric? You choose ?

Cash doesn’t lie ?

Hi PP

Genuine question

If BOO is at 4% EBITA @ £1.7B how do you get to it being loss making ? It’s done its kitchen sink non cash write down in 2022 and still generated £120M FCF by bringing working cap days to 47 / stock control

Interested to see how you calculate the below going forward ?

I’ve not included savings on Distribution - which is massive or Admin which has 3% on its own to come off cost of sales and I am taking £12M cost of finance net net as guided, serious bunce to add back but let’s leave off

As I say just like to see your breakdown in case I am missing something, thanks in advance

Cheers Poker - found it

Thanks for correcting me, got it - thumbs up

Boohoo has drawn down £150m of its RCF (Revolving Credit Facility) as of 31st March 2023 - not drawn the balance

The facility is uncommitted, which means that Boohoo does not have to draw down the full amount if it does not need it.

The facility has a maturity date of 30th September 2024.

The interest rate on the facility is linked to the London Interbank Offered Rate (LIBOR).

Stacks to the £amount of interest they paid last year

BOO have £5M in the bank of their own cash and a £300M RCF, it’s not like Bond draw down paying a fixed yield,it’s like an offset mortgage Is the best example I can think off top of my head

BOO generated £120M of FCF last year, the business doesn’t need a raise unless they want to buy something.

Hi Wolf

The NOMAD works with the Company and the AIM Team, the Co has no direct contact with the latter, it’s how it works, it’s why RevB IR is advising they are in the hands of the LSE, the NOMAD doesn’t have the authority to re list a company,they will negotiating the terms on behalf of the Co.

From a BOO point of view we have a seat at the table, let’s see how this goes the next few weeks

What would the placement money be for ?

They don’t have any debt ? They have £300M plus RCF

They are FCF positive to the tune of £120M last year

Any ideas ?

Wolf, my comments below are just fact, it appears what little communication is coming from RevB IR they are saying they are in the hands of the LSE ( AIM Team ) and the company has not been able to re-list its shares confirms same

RevB only has a day to day rolling finance agreement, it’s why the auditors quote ‘ material concern ‘ it’s reliant on the company re listing, it’s not formal in terms of it’s not firm, IF RevB didn’t re- list it can be pulled

Non of the above is my opinion, it’s just fact.

Ditto with the fund raise, the company has told the market they will be raising funds, that’s what the capital day is about.

I like ReVb and non of the below is a slant on the business itself , it’s looking at the facts we are told by the Company and how that could affect BOO shares

He’s in UAE

Not sure if it’s a shot of his accommodation or it’s the gym

Hosia/ Wolf

This is now being driven by the AIM Team, they won’t allow RevB to re-list until it can sort out its capital - it’s why it hasn’t re- listed

The Company has no formal banking arrangement, the lenders won’t give them one until they re-list and AIM Team won’t let them until they do so and the auditors sign stuff off

To square the circle so to speak RevB need to raise ££ and strengthen the balance sheet, hence they are having a capital day - they have told the market they are seeking funds just by this action

Putting my BOO hat on, think we can say they will at the minimum take up their rights, fair comment as they doubled their equity whilst BOO was suspended, they have a game plan.

It’s just what is that game plan and will they be the cornerstone funder of the capital raise and will the 2 ex directors chip in ?

At one stage I was thinking BOO could bid for the lot but am not sure they need to and pay a premium, the smarter deal is as below.

Appreciate it’s all semantics as we have no say in the matter, all we can do is position ourselves as to what it will do for BOO shares going forward, let’s see how this plays out

Goldmans CEO quoted on line FT this evening

My gut tells me, and this is probably not a good read but it served me pretty well over time I would say, I feel like we’ve bottomed on this. I just feel the tone is a little better,” Gorman said at an industry conference organised by Morgan Stanley. “We’re clearly seeing more green shoots. I’m having more discussions with CEOs.”