Member Info for Peoplepower1

T4g - stop it with the market makers, shorters etc. This is simply blaming other people for the share price going down.

When we all know the share price is going down because profitability has collapsed for Boohoo.

T4g - it helps to read the posts in full. Stockopedia is questioning the unsecured loan because it is very unusual.

With an unsecured loan you pay more interest compared to a secured loan. So, why unsecured?

And again:-

Profitability has collapsed for Boohoo.

So investing here is now a bet on it being able to rebuild profits, which is a lot less attractive to investors than the previously superb profit track record.

Sums it up to me.

From Stockopedia:-

Profitability has collapsed.

So investing here is now a bet on it being able to rebuild profits, which is a lot less attractive to investors than the previously superb profit track record.

SHEIN - the Chinese competitor.

It’s difficult to get figures on this, but Shein seems to have devastated the sector, internationally and UK, by undercutting on price.

US legal case - Not much clarity on this.

Departure of key people, especially the family founder of PrettyLittleThing.

Share based charge of £32m seems too high, given the share price collapse, I think mgt need to make more share of the pain.

Dubious exceptional charges - aggressive accounting?

From Stockopedia:-

Net cash hides a fully drawn £325m RCF (No disclosure of who the lender is), and a gross cash pile of £331m.

Why would it borrow all that money, then just sit on the cash pile?

We need more information.

Note 20 is coy on the facts, but says its a long-dated (2026) borrowing facility, with (no detail) 2 covenants on interest cover, and adj leverage (presumably a multiple of EBITDA?).

It’s unsecured too, which is very unusual.

We’ll have to scrutinise the Annual Report for more detail on who is providing this large borrowing facility, and what the more detailed terms are.

We can’t properly risk assess it without that info.

Exceptional costs of £44.9m looks to be stretching things - is this aggressive accounting?

Exactly t4g you know Boohoo wouldn't be able to run the business without the rcf.

Your problem t4g is you're too acceptant of what's being said in the RNS and you don't question anything.

Questions, questions, questions.

Never simply accept everything that's being said.

Questions need to be asked about the RCF, who is th elender, what are the covenants, why did Boohoo drawdown all of the RCF?

If you're not asking these questions then you're kidding yourself about Boohoo's future.

You tell me t4g how Boohoo would manage to run the business without the rcf?

The cash position is only because Boohoo have the RCF.

There may well be a fixed term however what are the covenants related to this fixed term?

Stop with the defamatory stuff and grow up.

Ask the questions. Boohoo is no longer a growth company.

Net debt is going up and that's what matters t4g. You need to stop looking at Boohoo through rose coloured spectacles.

T4g - for me you are a great corporate speak man because you make things sound good and don't go into what really matters.

Without the RCF the business wouldn't be able to keep going, the business wouldn't be viable. Yes, you'll say they have £100m property, how long would this last without the RCF?

There's not enough information on the RCF like who is the lender, what are the covenants?

Why did Boohoo draw down all of the RCF?

Answers are needed.

Hexam - great points on your post.

Always remember EBITDA is not real profit. For me, It's simply corporate speak to make things sound good.

Another important question is why have Boohoo drawn down all of the £325m revolving credit facility?

Everything depends on the £325m revolving credit facility which we know too little about. Who is the lender? What are the covenants?

I love that "capex to depreciate" like somehow the fairies pay for the capex.

You have your opinion on net debt t4g and I have mine. £15m for me is a huge variance.

Fortunately I've never encountered any dodgy brokers t4g.

However, too many CEOs and Chairmen have proven, to me, not to be trusted.

T4g - so you think the net loss will be £40m for Boohoo for tomorrow.

Maybe to you net debt of £55m vs £73m is neither here nor there. To me, it's a huge difference at 35% more.

Each to their own thinking.

It looks like Shore Capital doesn't believe what ASOS is saying because they believe ASOS will have to raise further funds hence the huge drop in the ASOS share price today.

For me, I never trust what a CEO or Chairman says in an RNS.

Shore Capital have come out with a sell for ASOS today because they believe ASOS will have to raise more funds.

This is probably why ASOS have gone down over 20% today.

It's best to wait for Stockopedia's forecasts for next year 2024 because no doubt they'll change with the final results for end of year 2023 tomorrow.