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BruceJamieson - I included Boohooman under Boohoo itself.

In my opinion this is the time to be buying CAP-XX shares and tucking them away for at least 10 years in your ISA and Sipp and in your families' ISAs and SIPPs too.

CAP-XX's revenue to 30 June 2020 is likely to be A$3.7m so if CAP-XX's Order Book has more than doubled then revenue for 30 June 2021 for CAP-XX'S Order Book will be at least A$8m which will put them in profit for the first time.

Then add to this the Murata automated production lines with the Murata customers and revenue and profits will be up even more.

I think CAP-XX's priorities at present will be getting the Murata automated production lines up and running so they can provide the customers they have retained from Murata with the supercapacitors they need for the future. This where revenue and profits will be coming from in 2021.

CEREUS - Boohoo Group have six brands. They are Boohoo, Pretty Little Thing, Nasty Gal, MissPap, Karen Millen and Coast. These brands are sold globally including the USA.

CEREUS - Global Revenue for Boohoo for 2020

UK - £680m up 39%

Rest of Europe - £189m up 64%

USA - £264m up 59%

Rest of World - £104m up 19%

The Global Fashion Market is worth £2,000bn. UK £71bn, USA £330bn, Europe £350bn and Rest of World £1250bn. There's plenty for Boohoo to go at globally and grow even further. This is what Boohoo are doing and have been very successful. Buying an existing USA brand Nasty Little Gal has already proved a good move for Boohoo.

CEREUS - Boohoo bought US Nasty Little Gal from Chapter 11 Bankruptcy for £20 million in 2017 and at last results had achieved revenue of £100m.

Liberum also said long-term value could be found in the online fashion firm's “expanding stable of brands”

Boohoo's spending power was boosted last week after the group raised £200mln to snap up what were “numerous opportunities” that are “likely to emerge in the global fashion industry over the coming months”.

The broker also said that they viewed the firm’s current valuation and share price momentum as “a sign that boohoo is winning big in the global fashion space, that the opportunity set continues to expand and that management is taking all the right actions in order to realise the growth potential that lies ahead”.

“We know M&A is on the horizon so momentum in all regards is likely upwards”, Liberum said.

https://www.electronicspecifier.com/products/sensors/super-cap-ups-with-lora-sensor-nodes

Cash as of May 8 was A$4.4mln with a A$3.3mln payment from the Australian tax office expected in the fourth quarter making a total of A$7.7mln. So, in my opinion, A$ 7.7mln is more than sufficient cash to complete the integration of the Murata automated production lines, which will result in a significant uplift in revenues and ultimately positive cashflow from operations in 2021.

Liberum lifted its price target on shares of Boohoo to 430p from 330p on Wednesday 20 May 2020.

The broker, which kept its 'buy' rating on the fast fashion retailer, said the company's strategic capital raise "affords it a command and control approach unlike any other branded fashion player we know of".

"Its war chest of £500m will, if used, change the size and shape of the group, embedding its position as one of the fastest growers in global fashion."

Last week, Boohoo raised just under £200m in a placing to take advantage of M&A opportunities.

Liberum said this was "a decisive move by management and one that truly signals how the shape of retail will change post Covid-19".

It noted that historically, Boohoo has bought brands and not the stores when it has acquired distressed assets. It said this was unlikely to change, so any future transactions will likely involve taking ownership of the brand and maybe the digital assets, but certainly all the brand rights.

"So the sum of £200m gives it significant clout and we see the potential for many deals but within this we suspect some large brands could be acquired."

Liberum said that while the coronavirus outbreak may have tempered recent demand, there is still growth in all of Boohoo's brands and geographies, no inventory overhang and margins are well underpinned.

"The model is impressively agile versus its closest peers, but it is Boohoo's expanding stable of brands where its long-term value truly sits."

Brilliant news. Liberum understand online retail.

BruceJamieson - a high end US brand. Please read the post in full a number of times and think about it before responding.

Please note, at the last annual general meeting Boohoo stated that a £1000 Karen Millen coat sold out so quickly that it even surprised them. Karen Millen is a high end brand. Boohoo bought Karen Millen in 2019.

Nasty Little Gal BruceJamieson. Boohoo bought Nasty Little Gal for £20 million in 2017 and turned it into £100m revenue in their last results. £100m revenue in 2 years. If you read my past posts you'll see I've already stated this.

The fashion masks being sold by Boohoo have no medical benefits but are likely to sell well.

Dana Thomas, author of Fashionopolis: The Price of Fast Fashion and the Future of Clothes, described the way fashion retailers are adapting to the pandemic as “very clever”.

“Governments are going to require you to wear masks when you come into a store to shop, so selling them on the spot - like selling you a bag when you forgot yours - is smart business,” Ms Thomas said.

“Masks are also going to become fashion items,” she added. “We’ll wear them like sunglasses, or T-shirts, or even handbags, and we’ll choose them to make statements.”

Laura Arrowsmith, who lectures in fashion business and promotion at Birmingham City University, suggested that producing fashion masks in colourful and fun designs could make the prospect of concealing your face, or encountering others covered up in this manner, less unsettling than it might otherwise be.

There could be an environmental bonus to producing masks too, Ms Arrowsmith pointed out. As the items are so small, brands will be able to use left-over fabric or material from goods that have not sold, minimising waste.

Supercapacitors specialist CAP-XX Limited said revenue for the year to June 30 will likely be up 15% at A$3.7mln, though it added that sales in the second half had been affected by a slowdown in shipments caused by the coronavirus pandemic.

The company flagged that it expects to post an underlying A$2mln loss, up from A$1.6mln a year earlier.

However, it added the order book “is greater than twice the level at the same point last year”.

“This increase has been driven by the medical, security and telecommunication market segments,” it went on.

Cash as of May 8 was A$4.4mln with a A$3.3mln payment from the Australian tax office expected in the fourth quarter.

Last year Cap-XX agreed to buy assets used in supercapacitor production lines from Japanese firm Murata Manufacturing

In its update, the company said it was confident it will have “sufficient cash to complete the integration” of the Murata operations, which it believes “will result in a significant uplift in revenues and ultimately positive cashflow from operations in due course”.

With patent court cases, I think you have up to 3 years to bring proceedings from sending the first warning letter. You have to warn them first that they are infringing your patents. Then you have to build the evidence of them being warned, ignoring the warnings and continuing with their infringements. This all takes time.

Boohoo has revolutionised into the fastest growing international e-tailer. The business is 24/7, bringing latest styles with affordable price tags to customers. Fashion is not taken too seriously; instead it is something that Boohoo have constantly been trying to keep ahead of trends, whether it is in design, social media or marketing techniques. Boohoo can be considered as the market disruptor, with its on-trend approach to selling clothes online. Boohoo continues to re-disrupt the market and differentiate itself from other online fast-fashion brands.

mystic1076 - Boohoo’s IT portfolio

Apart from Sage for accountancy, which was implemented from day one, Steve Roberts, Boohoo's IT Head of Operations, says most other technology platforms deployed at Boohoo are under three years old and Boohoo’s 45-strong tech team ensure they choose technologies that they can swap out quickly in order to remain agile.

“We’ve taken an agile approach to source systems – let’s not build something we’re stuck with but swap it out and make it easy to get rid of as possible,” he explains.

“In terms of IT, it is a relatively painless exercise and we’re taking that approach because these days it’s really hard to do big systems,” says Roberts, who believes that if you implement SAP or Oracle you are “stuck in their world”.

In order to be able to quickly swap out systems, three people in Boohooo’s Java team spent a year building a cloud-based integration platform using open-source software. Because it uses open-source technology, Roberts says it doesn’t cost very much to run and switching out systems – like the retailer’s eCommerce replatform onto Salesforce Commerce cloud last year – is a reasonably quick process which Boohoo can control centrally.

“It means we avoid getting locked into big systems and we can cut and paste stuff when it comes to the end of its lifetime,” he explains, noting how the in-house integration system also helps the retailer scale and process more orders in peak periods.

Roberts concedes that it is easier for a newer business built on digital foundations to be so agile, but also points out how new technologies such as open source and the cloud make IT change much easier.

“Back 25 years ago it was harder to take my approach, but now there is no excuse to put in place systems and not be stuck with stuff that is hard to get rid of.”

While its open-source integration system acts as the skeleton for Boohoo’s IT, Roberts and his team choose a mixture of outsourcing and in-house development which sits on this core system.

“We’ve outsourced our eCommerce platform because in reality it is a monumental job to build,” he says. “We have our order management tool which we’ve built ourselves, but for the big stuff you can’t avoid going out to a provider. But the stuff that’s small and we can add value to it, we do ourselves, which means we have an IT application portfolio across the business which is a healthy mix of products we’ve bought and products we’ve built.”

It makes perfect sense for Boohoo to buy high end brands. They did exactly this with Karen Millen, took the brand and lowered the operational cost to drive margin in a high-end, higher margin brand. Boohoo's market penetration in the high-end is very low so plenty to go at for them.

Boohoo could also do this with a US brand as they are pushing more in to the US and you have to consider some brands are known globally and sold globally such as Ted Baker.

Boohoo is running rings around competition because it has a new range lead time of 1 week. Boohoo has been so effective at matching trends and keeping very efficient working capital.

It is obviously not Amazon today. However, it may never in the future. The point is, go look at Amazon's share price between 2000 and 2015 and then the period after 2015......it is relatively flat until that point. Most investors missed that exponential growth after 15 years of Bezos building Amazon.

As for the placing, the one thing Boohoo lacks is high-end brands.