Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
What I find amazing is that the P/E ratio here is likely to be pretty close to 1 following the full year results, compared with boohoo which may be growing but has a ridiculous p/e of more than 70!
Just shows ridiculously undervalued this is I think you’d struggle to find a more undervalued company anywhere
What you also need to take into account with those sales changes is the reduction in marketing, at the last update they said sales were down 25% overall but with a reduction in marketing of 80%. That is a huge amount and more than a 100m saving on an annualised basis!
Not sure why there would be a RI as of last announcement they’d announced 50m government loan facility, paid off overdraft and also managed to generate cash on top of that. (Looking at between first covid trading announcement and most recent) it looks to me like they are generating a lot of cash so wouldn’t make sense for a raise imo.
Great result in the current scenario we are in, there’s not many companies who’s sales are only down 25%.
Even the big players like Asos said their sales are down 20-25% so to have sales down 25% here with also a 80% reduction in marketing in such a marketing heavy industry I’d say was actually very good. (80% reduction full year marketing looking at in excess of £120m saving)
Overdraft paid off, extension of facilities this is one solid business. The only possible reason it could be anywhere near these prices is that people thought it would go bust, now we know it won’t I expect a rerate.
Yes hadfield tends to be larger items furniture white goods etc where as shaw is mainly clothes, actually went for a tour around shaw site a year or so ago was really quite interesting.
Interesting point on the returns could mean that when the results do come out the results are actually even better than stated (due to when you recognise revenue you essentially have to deduct an amount of returns based on normal levels) that would be nice if that ends up getting reduced during the year as could be a substantial amount.
Agreed. Let’s also not forget when people do end up back out and about clothing sales will likely pick up anyway so I see it as a win win really. Something like this is actually really good for jd Williams who is targeted at a somewhat older customer many of whom will have likely ordered online for the first time and I think the momentum of that will continue also and should benefit the business in the future.
All the best
Could do I suppose but more likely to sell off the loan book really. A lot of the items are actually the same between brands eg simply be and jd Williams sell a lot of the same clothing so it wouldn’t really make sense to sell off
What’s also a good sign is that it’s not just jd Williams, even the smaller brands premier man etc and even oxendales (the Irish component) looks to be seeing great growth which is also positive because it doesn’t sell very many white goods which are low margin anyway
You do have to be careful with free sites like this as they can double count visits etc so 700% does seem ridiculous however the general direction of them does appear to be up which is a brilliant sign.
I also think what’s very encouraging is the organic growth so it’s consistent with a reduction in paid marketing which is fantastic for cash and profit.
I’d heard less than 20% down on clothing while home sales up massively.
The sales down mainly due to reduced marketing in order to build cash balances which is working brilliantly.
Could be wrong hopefully they are up ha!
People have for some time been critical of management here but I must say I think they’ve done a fabulous job.
All these costs that have held back profit for the past few years for example cutting the shops, and shifting marketing to profitable growth rather than marketing for the sake of it doing direct mail etc this just means that business is so much more flexible.
Online marketing can be turned on and off and I for one wouldn’t be that comfortable still holding here if they were still burdened with the old stores.
The way I see it is with a large marketing budget that can be rapidly reduced, no stores and a consistent stream of financial services income I think n brown is made for difficult times like this. It has shown it time and time again through past financial crises’s and this time I believe will show it even more with it’s now much leaner cost base.
Good to hear people are hearing the same information as me. To add - most of the marketing department are currently furloughed which just shows how well the business is performing with those traffic figures even though the marketing spend has been substantially reduced. Marketing is a large part of the cost base and has been decreasing quite dramatically over the past few years anyway but no doubt this will have reduced it further.
I’d imagine the current delay is with bad debt modelling of the financial services element as it is quite subjective and obviously the auditors need to be in complete agreement but I wouldn’t worry about. The company comfortably survived the last recession and it is a much bigger beast now with a much more flexible cost base, combine that with furlough and government schemes and I think this is a very safe bet.
I’m also in really big here but with good reason and if it drops back further with the market I’ll be looking to pick up more.
Clothing sales understandably down but still have a solid fs residual income stream and home and garden sales through the roof.
Good luck everyone it’s only a matter of time before we reap the rewards.
Didn’t realise how bad this was. Might take a punt at 1p on Monday
Here we go..
Good results but a very disappointing move here..