Member Info for Okehurst1

I don’t mind the ‘ shorts ‘ they offer opportunity as they drive the price down, it was only just over 5 months ago they drove THG to 40p - end of December

It’s a bit like ‘ catching a falling knife ‘ but Longs on here knew that was a bargain price and we eventually jumped almost 200% from that price point - couldn’t have done that without the Shorts driving the price down then them having to buy back shares to close

Money to be made off the back of them, let them ‘carry the water ‘

The Times, reiterating the going concern statement off the auditors and it appears Rev B Directors were dropping £P’s to distributors to buy £9M of stock then Rev B invoicing the Distributors and then the directors hide away the stock in their own warehouse and then Directors making loans to senior managers - guess the CFO was one of the recipients - to cover their tracks

Throw in the company buys a major asset off the ex Chairman and Mcfarlanes say the company failed to consider key information when acquiring the same ?

It appears there was quite a few involved in the alleged Fraud, it wasn’t just Directors and more than 1 senior manager

No wonder the SFO are investigating ,think Bob Holt has done a remarkable job holding this all together, respect to the man.

Snap shot

Newly released accounts for the six months to the end of last August show pre-tax losses narrowed to £13.3 million, from £28.8 million over the same period the year before, largely thanks to the absence of costs associated with its float on London’s junior Aim market in 2021 and lower stock provision charges.

BDO, its auditor, reaffirmed a “material uncertainty” that may cast significant doubt over Revolution’s ability to continue as a going concern. The company said it expected high-single-digit growth in revenue for the present financial year and adjusted earnings before interest, taxes and other charges in the high-single-digit millions. Results for the financial year ended February this year are yet to be released.

Revolution, launched by Adam Minto, 53, and Thomas Allsworth, 57, in 2014, had ambitions of creating a “mini-L’Oréal” for young shoppers. Holt, 68, was appointed after the founders stepped down last year. An investigation by Macfarlanes, the law firm, found that “unacceptable” loans had been made to senior managers, distributors had been asked to book orders worth £9.6 million to meet financial targets and that Revolution had failed to consider key information when acquiring a company owned by its chairman.

https://www.thetimes.co.uk/article/5034c536-0157-11ee-a364-04e704863f75?shareToken=2f42f279a502256a0b05b500c9d8cb5c

USA market looking good

Distribution costs lower

BOO looking cheap

Of interest

Lululemon’s forecast-beating results on Thursday night revealed a 24 per cent increase in net revenues to $2 billion. As its bosses are confident there are few signs that demand for its yoga pants, joggers and leggings is slowing, the company now expects its full-year revenues to be $9.4 billion to $9.5 billion, having previously suggested between $9.3 billion and $9.4 billion.

Investors were also relieved by the news of lower air freight costs and the sharp rebound in sales in China, which climbed by nearly four fifths in the quarter. That boded well, apparently, for JD Sports, which rose 4½p, or 3 per cent, to close at 157p and Frasers Group, which picked up 16p, or 2.3 per cent, to 700p.

https://www.thetimes.co.uk/article/107b405c-0164-11ee-96f6-54413087455a?shareToken=de97e28b708e568dd78054bee795a45c

Hi Hosia

Fair points

Minto /CFO are being investigated by the SFO though and £9M is still a lot of $$ especially if it’s linked to the directors hitting performance targets

Guess it will all play out next few weeks/ month one way or another and BOO set up either way, good end to the week

I have PP

I pay for broker reports -after their one on one with management - if you contact Peel, become a client and pay for their analysis it’s all there

Hi Hosia

Minto and the CFO are under investigation by the Serious fraud office, guess the CFO will spill the beans on who was involved - personally not sure the Chairman bit matters materially ?

REV B say investigations ongoing about fair price for Medichem ? Guess only Tom knows if there was any wrong doing ?

Check out the slide on Debenhams

It’s all there PP

They actually say it’s now profitable - hence Peel Hunt requoted this week

I agree but REV B recoup off the 3 ex directors

it’s a nil net cost

All goes back to why would these ex directors hold shares or even chip in £millions on a right issue?

They are all in serious trouble here …

PP

Have you watched the analyst meeting 2 weeks ago?

They actually said Debenhams is profitable and Peel Hunt re quoted same this week when they raised the share price target to 75p

They only need to get past the 50% to control the BoD

That’s all they need

The shares may not relist and the nil cost options are nil and void

It’s a good point you make PP

REV B will contra charge the ex directors for any fines incurred on top of all the extra audit / legal work

You can see the point now that the ex directors won’t want their assets tied up in Rev B

All subjective but IF Minto / Tom cash in their chips to BOO

they then control 60% - and the BoD at that point

They then tender for balance at highest price paid per share

they only need another 15%

They don’t reapply REV B to AIM and anyone who doesn’t sell they own shares in a private company until BOO get their 15%

they mop up everyone else via scheme of arrangement.

BOO shares rerate on the back of this deal if it happens - all depends of course on BOO/ ex directors selling

Just can’t see holding the shares makes the directors look better, they were either fraudulent as claimed by REV B auditors or not, holding shares means nothing

Since suspension Minto sold his Cheshire residence and apparently now resides in Turkey, make what you want from that action

This is the REV B accounts overview

The company's former CEO, Adam Minto, and former CFO, Stephen Habberfield, are alleged to have engaged in a number of fraudulent activities, including:

Overstating the company's sales and profits

Using misleading accounting practices to inflate the company's value

Making false and misleading statements to investors

As a result of these alleged fraudulent activities, the company's share price has fallen by over 90% in the past year.

The Serious Fraud Office (SFO) is currently investigating the allegations against Minto and Habberfield.

If the allegations are proven, Minto and Habberfield could face criminal charges, including fraud and false accounting.

The company could also face significant financial penalties.

The potential fraud by the ex directors of Revolution Beauty plc is a serious matter that has had a significant impact on the company and its shareholders. The SFO's investigation is ongoing

It’s not about looking squeaky clean, there has been serious allegations about them in the audited accounts - it’s all in there

They have paid suppliers with their own €€ to buy REV B goods and then stored those goods all to the tune of £9M

then fraudulently booked the same sales from the suppliers as genuine sales

Come on that’s fraud if correct, they have caused REV B to spend serious money on a full investigation, ditto reputation issues and affected their ability to trade as going concern

Put aside they have cost II’s big $ on their valuation level

Holding shares doesn’t make them look innocent - as I say it’s all in the accounts - or help?

PP

Medichem is a separate transaction to Minto/ Tom selling their shares.

The company will come at Tom IF they can for the Medichem valuation, they already allude to in the accounts in terms of the terms the 2 directors agreed to between themselves, agree on a structured deal

The 2 ex directors can do what they want with these shares for now, sell, support a rights issue or be massively diluted it has nothing to do with ‘ how they look ‘ - they look in deep water if you read the accounts, holding shares doesn’t help them at all

Agree, REV B can’t make them sell, it’s just do they want to leave a wedge of their $$ in REV B, have no control BoD level, put aside putting potentially £Millions into a right issue and then be targeted for litigation ? I can’t see that ? It’s dumb

T4G /Hosia good chat and a good end to the week

They only have 12 weeks to file 2023 accounts

No way the AIM team will let them relist until full accounts cleared as a going concern