Member Info for onsolidground

Are we caught up in the middle of this. Can't access the full article. Might part explain things.

https://www.reuters.com/world/uk/uk-watchdog-says-audits-by-accountants-bdo-mazars-concerning-2022-07-20/

BDO were the auditors at Lookers.

https://cardealermagazine.co.uk/publish/lookers-to-delay-2020-results-yet-again-as-auditors-say-they-need-slightly-more-time/226627

Then wait on the sidelines then and see how it comes out the other side.

If it is as the BoD have stated then you will pay a premium.

The fall was well overdone Friday on a 3rd RNS on the essentially the same news of an overshoot to the results date.

Should rest back towards mid-20's as the FY guidance is still maintained and the company keeps producing and selling affordable products.

It's brought all nicely back to a share price and market cap where Next first expressed an interest.

Planned or by accident, who knows.

Overdone fall Friday to take out the stops on virtually the same news as 2 previous RNS's and another opportunity presented for those who can see FY guidance has been maintained, Bohoo and Pentworth having acquired 18% and some quality product coming through.

Would have been better covered by one 1 RNS instead of 3 but that presents an opportunity that many thought they would never see again on a company that will continue to produce and sell.

You probably missed your chance on Friday as the 10 point fall on Friday seems overdone. 3rd bite at the same cherry.

If the demand is there which it quite clearly is then why not.

Still makes it 1/5th of the Charlotte Tilbury close competitor at £75.

Will also help improve margins and generate profit.

You can join the waiting list for the £10 Magic Pro Cream here if you wish. Sold out on the DTC webiste.

Alternatively Lookfantastic, Debenhams.com or Boohoo might have it in stock

Overreaction on Friday that takes the share price back to being grossly undervalued compared to NAV, and a maintained FY guidance with Boohoo and Pentworth having accumulated over 18%. Boohoo openly stating its a strategic investment.

Personally I'm anticipating a short further delay if it comes to that and if suspended then the clock stops on all the volatility and it comes out the other side with the audit completed and issues resolved. Hopefully a Lookersesqe jump on reopening.

Doesn't stop the company carrying on producing and selling all its products and with its Magic Pro Cream and Eye cream selling out. Any sense both those are already in ramped up production.

I'm not going to predict a Monday opening but think it will end up back into the 20's as the day progresses.

So 67p to c.16.6p for a drop of 50p off essentially the same "late audit completion" news. See earlier in the thread for the exact movements up and down and Boohoo and Pentworth buying a combined over 18%.

Drop from 26.1p on Friday alone merely off "had hoped it would be done by 30th August but best assessment says not" plus consequences. Company keeps trading throughout.

Had they at the time of the first RNS warpped all 3 together with a "results will be late and working to a target date of 30th August but there may be some further slippage" then the share price might be nearer 30p.

3 RNS's essentially covering the same news and Boohoo and Pentworths buy in makes Fridays sp movement look like a gross over reaction.

Seemed confident enough to name working towards the 30th August as an optimistic timeframe in RNS 2 so optimistic it should only be a short delay.

Meanwhile FY guidance still stands as per RNS 2.

"It should be noted the potential changes to the results for FY22 do not impact the net debt position previously notified of £21.2m as at 31 July 2022 and management reiterate they believe that the Group's £40m revolving credit facility provides sufficient liquidity for the future. Management also confirm that guidance for the year ending 28 February 2023, as set out in the announcement on 2 August 2022 remains unchanged."

I flagged up a review on this last week with some really good free publicity on it on social media and also in the Express, Sun, Mirror, Ok and many other outlets.

https://www.thesun.co.uk/fabulous/18482720/charlotte-tilburys-magic-cream-revolution-dupe/

https://www.manchestereveningnews.co.uk/whats-on/whats-on-news/swapped-charlotte-tilbury-moisturiser-10-24773451

The Express yesterday was carrying another feature of a new complimentary Magic Pro Cream for the eyes. Again with good endorsement.

https://www.express.co.uk/life-style/life/1656961/Revolution-Pro-s-8-eye-cream-eact

That's my prediction for next week. Has the weekend to mull it over.

Matt Moulding and THG to acquire a strategic holding to complement its Beauty division and to match Kamani and Boohoo who stole a march on him

https://www.thisismoney.co.uk/money/markets/article-9797897/Boohoo-Hut-Group-backing-beauty-Revolution.html

Yeah I took off from 67p to 61p HH to make it more representative so arguably 37p banked by the Market makers on the 1st RNS. So 67p to 16.6p with an over 18% stakebuild.

Hopefully it gives you some insight as to who has been banking and creating what value here.

Feels like I have been holding this for a year with all seasons in a week.

Despite all the ups and downs it still has maintained FY guidance.and sufficient finance.

Brief history of the last 2.5 weeks.

1st RNS – 2nd August. Delay to FY results that were due that week. 30th August given as the new date. Combined with a trading update that still expected 9% growth in revenue and a slight reduction in Ebitda. Issues flagged re trading but seemed confident they had the right strategy moving towards the busier 2nd half.
Share price. 61.4p close the night before. MM’s open it at 31p after the RNS where individuals first got stopped out. MM's bank 30p. Then falls to 25p end of the day with Jupiter potentially and others selling and buying accounting for 6p of further falls.

2nd RNS – 11th August. Auditors have raised the potential for a number of adjustments to the accounts including stock and bad debt provisioning and revenue recognition. Working to complete FY results by 30th August. NB.
“It should be noted the potential changes to the results for FY22 do not impact the net debt position previously notified of £21.2m as at 31 July 2022 and management reiterate they believe that the Group's £40m revolving credit facility provides sufficient liquidity for the future. Management also confirm that guidance for the year ending 28 February 2023, as set out in the announcement on 2 August 2022 remains unchanged.
Share price. Sinks as low as 7.4p but recovers to 12.85p at the close. MM's playing on Jupiter FUD then some thinking Jupiter gone and buyers emerging.

12th August share price starts rising back up. Then 17th August onwards Boohoo and Pentwater disclose combined stakebuilding of over 18%. Takes the share price to 33p at one point and falls back to 29p.

3rd RNS today – 19th August. After speaking with the auditor assessed that audit won’t be completed by 30th August. If so suspended till completed.
Share Price Reaction – started the day at 26.10p. Drops to 23p with it looking like a treeshake and recovered back a bit to 24p 25p. RNS released and the MM’s reaction plus use of the spread take it down to 14.45p. Finishes at 16.6p. Near 10p fall. 9p banked by the market makers imo. 2p regained.

3 pieces of news all concerning the same issue and Jupiter distressed seller FUD. 61p falls to 7.4p. Back up to 33p then back down to 16.6p. With over 18% gained in new institutional shareholders. Boohoo.com and Pentworth. Jupiter last RNS 12th August and still holding 8.43% then.

The best thing they can do is take the Next proposal.

Yes there will be dilution but they end up in bed with a niche retailer who knows what they are doing, get access to their platform and the forward cash situation is resolved.

Current sp must be at a discount to what Pentwater paid.

If its the same ones that complete the audit you would expect 2-4 weeks given that they did initially think they would make the 30th August deadline.

I'll hold through that as I am in no rush and I suspect so will Pentwater and Boohoo with over 18 recent percent stakebuilds.

I think more related to travel and the addition of Russia and Ukraine to audit.

Could also be that the auditors left it late or didn't commit enough staff.