Member Info for Pmoran1969

Dan - Debenhams might well be a shop window but within that shop we intend to place beauty and the debenhams own brands (principles etc) as well as beauty.

when he’s was asked at the presentation John lyttle confirmed that we would be maintaining the supplier relationships for the Debenhams own brand purchases as well as introducing our own suppliers to this area. He also made the point that our supplier network for our high quality brands is different to those of young fashion.

One of our recognised strengths is our test and repeat model which other companies including Debenhams and Arcadia have not done.

One of the things we do have to accept is that as we acquire and grow the various brands in our portfolio we not be able to use test and repeat to the extent we do with our fast fashion. I think you made the point yourself that for certain products (I think it was a blue jumper) test and repeat isn’t needed.

So given all of our growth and expertise has been in the test and repeat arena and given we are moving to a model that includes a significant proportion or brands that either cannot utilise or don not need to utilise the test and repeat process it’s important that we have the right expertise in place to manage the different supplier relationship etc.

So it’s good news that we are bringing people across from Arcadia that can make the brand transition smoother but if they are good people with a lot of industry experience then they also add value to boohoo generally as we grow the other areas of our business. So if debenhams had good people connected to the individual brands that are moving over to boohoo and those people could have helped the brand transition and potentially plug gaps we have elsewhere I’m sure we would have been more than happy to take them.

Think back to the mp select committee regarding fixing fashion and the detail boohoo provided concerning how we recognised that we needed to train our existing buyers to be able to cost products and ascertain instinctively if the price a supplier is quoting is achievable doing things the correct way. If we could bring in people with the right expertise and knowledge alongside new brand acquisitions we would be daft not to so it’s a shame that we missed the opportunity to do that with Debenhams because they had let their business run down.

If Debenhams is our shop window we still need the right people in the stock room to ensure the products are put in the shop window. I think you get too focused on the platform or the shop window and lose sight of the importance of the back office support functions. But last July it wasn’t our shop window that got us into the Sunday times it was our stock room.

So that’s the beauty people from Debenhams and the branded fashion people from Arcadia moving over with the new acquisitions. I would hope there will be some good people in those groups with a lot of experience who can not only he,p with the transition of the various brands into the boohoo model but will also be able to add value to boohoo in terms of where they are trying to make improvements in the supply chain etc.

Ineresting point about online food sbopping wongachaser given that the tescos ceo is one of the loudest voices calling for this online tax!

It’s not often that a chancellor finds themselves in a situation where they can introduce a tax that is broadly speaking popular. In the case of an online tax as a headline statement it supports the beleaguered high steeet, shows empathy with the people who have recently lost their jobs because of the de use of Debenhams and Arcadia and it enables him to go after amazon without putting a spanner in the works as far as U.K./USA relationships are concerned.

If the tax is 2% as has previously been mooted it wont matter if companies find a way of absorbing it in their production and supply chain or pass it onto customers it won’t make a great deal of difference. Until the law changed companies were able to change a surcharge for people using credit cards to make some online purchases so when you booked your holiday for example instead of paying £1500 you paid the credit card surcharge of £30-45 when you used your credit card. Some people stopped using credit cards to pay for these purchases and chose to use their debit card or bank transfer instead but others continued to use their credit card. The overall effect wasn’t a total reduction in holidays booked.

So if the overall effect on the consumer and businesses is negligible but the overall tax collected helps plugs gaps for the exchequer and avoids admitting what it really is which is an increase in VAT on certain goods then happy days.

As I see it the real negative about the online tax being reported extensively this weekend is we missed the chance to see what the true market reaction was to today’s announcement that we bought the Arcadia brands. I appreciate that we fully expected to get them and to a degree the acquisition of these brands may have been priced in but we didn’t know how much boohoo were going to pay for them and without this online tax business rearing it’s head over the weekend my view is we might have learned something this morning about what the market thinks of the deal.

Well in that case let me wish you good luck with both. I hope your interview is less volatile than your booboo shares but that the outcome of the interview is as positive as your boohoo shares will be :)

Yaf4e, or can I refer to you by your full name Richard Head? If I were to say something along the lines of oh my you are absolutely right this is surely the end and I’m off to sell my entire boohoo holding would you do us a favour and crawl back under your rock?

Millionaire - the notification of current holdings is a requirement for major shareholders in the event of a takeover.

In the case of the institutions they are invariably longer term holders of a share and what we can’t know from the declarations of holdings alone is when the originally invested or if they took the opportunity to add to their investment when the price was low.

If there had been significant purchases since the news about platinum had been announced that would indeed suggest that they think a better offer is likely but as London points out there’s been little movement. .If anything at the moment the only time their holdings come in to play for us as private investors is when a formal offer is made and the board make their recommendation for or against. Because usually it’s their votes I total that swing the result one way or the other.

Interesting that there appears to be no rns this morning saying platinum are out so we are in the same place we were when the boards rns came out on Friday, guessing as to what platinums motives for the take over are and whether the brains deal scuppers their intentions or not.

Opening bell will be interesting that’s for sure!

Dan

There were once two boys who were both 100m runners in their school. The first boy,
Dom and the second boy Roy competed against each other every week. Sometimes Roy won and sometimes Dom won and so it went on for many weeks. There were other boys in the school who were good runners but they didn’t compete in the weekly competitions because they couldn’t be bothered.

Time went on and each week various boys would run the weekly 100m running competition and sometimes Dom won and other times Roy won. One day after Dom had beaten Roy on the line Dom told Roy the reason why he lost was because he was wearing the wrong trainers and his shorts were too tight. Roy suggest to Dom that actually they were the same shorts and trainers he was wearing the week before when he beat Dom but Dom insisted that he was correct and that was that.

The next week as they were running the race Roy’s shorts split and once again Dom beat him although again only at the tape itself. “See Roy” said Dan “I told you those shorts were too tight I beat you because your shorts were too tight and you didn’t listen to me”. Roy explained that actually they were different shorts than the previous week but Dom said you’ll never beat me with those trainers they are all wrong and you need to wear the same trainers and shorts as me because these are the only ones that you can win a race in.

This went on for several weeks and in the end Roy just stopped entering the weekly 100m race at the school and entered a different race in his neighbourhood where sometimes he won and sometimes he lost. Dom continued entering the weekly races at school and sometimes he lost and sometimes he won but he always could be heard after races saying things like ‘I lost but I lost to someone wearing the same trainers as me, those other kids behind me it’s like I told Roy they’ve all got the wrong trainers on” or when he won ‘how many times do I need to say it it’s like I told Roy before, you will never win like me because you are wearing the wrong trainers’.

Several years later Dom was at university and entered a 100m race. Other universities took part along with other students from Dom’s university. Dom came 5th in the race. He walked up to the winner afterward to congratulate him and he thought he recognised him and the person who came second. ‘Hey don’t I know you two?’ Asked Dom. ‘Yeah we went to school with you a few years ago’ they both said. ‘Ah yes I recognise you now, I must have been off my game today because I can’t believe you would have beat me wearing those trainers’. The winner and student who came second looked at each other and laughed and shouted to their friends at the side of the track. ‘Hey guys look who it is it’s Dom from school’ . The group looked over and one of the group said to the person next to them ‘I think I remember him was he a good runner when we were at school?’ To which his friend replied ‘nah he was just less sh.I.te than Roy’.

Article in daily hate today suggests that Rooney Anand of greene king fame has backing of up to £500 million to go and buy u.k pubs. As has already been mentioned on here shares in other pubcos went up this week based in part on the possible ‘m and a frenzy’.

Even if the announcement of the brains deal being finalised or the contractual obligations within it that we have signed up to were to put platinum off it seems there might be others out there that view pubs to be cheap at the moment and the future to be bright.

The boards reaction to platinum felt to me like a ‘that’s undervaluing us’ rather than a ‘we are not for sale’. So who knows wether platinum will up their offer, whether someone else might be minded to get involved or if the board would even be amenable to a more realistic offer or if they genuinely believe they have the best plan to take the business and the share price relatively quickly to a place beyond what someone would offer today?

It will be interesting to see how it plays out but I was feeling confident about our future before any cheeky offer was tabled and if it goes away and the SP drops back I won’t be any less confident.

https://www.dailymail.co.uk/money/markets/article-9229383/MARKET-REPORT-Investors-toast-pub-restaurant-stocks.html I see from an article in the daily hate today that

Dan I get all of that and don’t disagree with what you are saying about the physical stock supply side particularly if we Dom ring across the existing Debenhams and if we get them Arcadia suppliers. And you’re right about the warehouse and in many respects for warehousing it doesn’t matter what rags you are storing and sending out to customer (fast fashion, young fashion, middle of the road fashion or high quality bespoke even) a widget is a widget. But we double our brands and our supplier network overnight and we need the right management and support infrastructure in place to make it work and more importantly to make sure that we don’t take a step back with regards to our agenda for change. I couldn’t tell you which analyst asked the question last week or last September but the issue of management bandwidth was raised and the guy who asked last week followed up with if management bandwidth became an issue what would take priority. John Lyttle response e was along the lines of we wouldn’t be doing this if we didn’t think we could do it successfully and we will add bandwidth as required.

So it seems at least some of the city boys are apprehensive about our ability to grow our stable of brands and still implement the recommendations from levitt report and ensure that we don’t let new issues within the supply chain happen.

I am confident that boohoo can make Debenhams including the new Debenhams brands and beauty and the Arcadia brands should we get them work and work profitably. But I see that it brings with it a set of expectations and challenges that we absolutely must deliver on because we cannot afford a scandal and the fallout like we experienced last year.

Like I said I’m confident we will deliver but it might take a bit of time and for the share price to step change upwards we need the analysts and institutions to see progresss so that they can believe too.

Don’t take this as being negative about the recent acquisition or the platform model or indeed as a signal that I somehow do not rate or trust John Lyttle but at the end of the day it’s ok to look forward to going to a beautiful exciting place for your holidays and still be slightly afraid of flying ;)

Dan - I don’t think you are looking at the full picture here.

Comments like - ‘Test and repeat works and works for the latest integrations. Warehouse and platform good for another £1billin of revenue (board said so back in Sep-20) ‘ doesn’t take into account volumes. Surely there is only so much suitable capacity in Leicester to manufacture the small quantities we would want for the test part of the equation and the more brands we have the more we will stretch that test capacity. The same goes for the repeat element in that we will need capacity in Turkey or Bangladesh or India or ****stan or wherever to supply our new brands. So when we get Debenhams and if we get the Arcadia brands we will need to be able to manufacture the necessary product and given that neither Debenhams or arcadia were using the same test and repeat model there’s no guarantee that the current suppliers for Burton or principles can supply on that basis. John Lyttle was asked about suppliers at the Debenhams acquisition presentation and said we would be looking to continue to use the existing Debenhams suppliers as well as introducing the new brands to our own suppliers and he also made the point that we use different suppliers for our high quality ranges than we use for young fashion. If the existing supply chain for the likes of principles is based on certain minimum volumes to maintain a certain price we will have to adhere to that or find an alternative supply source.

Our board have admitted that we experienced issues within our supply chain because we have effectively grown very quickly and our processes and management infrastructure and focus on supply chain didn’t grow quickly enough. We have committed to our agenda for change and brought in leveson and kpmg to report on that side of things but if we go out and buy a shop window with x million existing customers to put our brands in and if we buy some more brands to add to what we already have then that does present us with the challenge of making sure that our existing teams and supply chain are fit for purpose for dealing with that.

It’s all very well saying we can take our time and have partnerships on the platform to plug gaps but your are looking at our product offering there and suggesting we can partner with a children’s wear or home wear or sports wear partner who will hold the stock and do the deliveries to customer and just pay us a commission. But the bit you don’t seem to have focused on is how does buying Debenhams with its x million users and a few additional brands impact our existing set up be that our buyers or our suppliers or our supplier compliance teams?

Select, its 65% owned by stephen marks and mike astley. Whoever wanted to buy them would have to have already done a deal with them first

Kitale this is lse mate not reddit!! If you’ve got 50g’s invested that you don’t need to lay your hands on for the next couple of years then I think you are in a good position to see some rather nice growth in your Ezj investment. If however you’ve spent house deposit or are leveraged up to the chin then I worry for you. Not because I don’t think EZj is a good share to hold (I’ve got a few myself) but because it will only take Pfizer to do a deal with Biden to prioritise supply to USA or a fire in the azn
Production facility in Belgium or a mad scientist to give the wrong advice to Boris and this share could easily take a temporary hit. Will we get back up to £8.50 and beyond? Yes I believe we will. Will it be in the next few days? Maybe maybe not. If your position is a worry for you I would suggest you either balance it to something more suitable for you or embrace the fear and keep repeating to yourself that it’s only money and you only live once ;)

Danl - is mudis not right in what he said though?

You’ve been banging on platform and how it will help boo to become hut and accelerate growth.

So do you think by the time our growth slows down to next level everyone will be getting excited about a platform model/environment?

I suspect not. By then it will be next generation AI managing customer demand or consumers subscribing to our platform and ‘renting’ fashion the same way hotels ‘rent’ bed linen or maybe our automated warehouse will simply select a suggested new season wardrobe (based on last purchases and which influencers a customer follows on social media) along with a suitable make up palette for our customers and drones will deliver to our customer at a time to suit them, will wait while they try stuff on and then bring back the items they decide they don’t want.

Of course it’s possible that mudis was suggesting that the word platform is being thrown around by every Tom dick and Harry and is becoming meaningless or confusing and to be fair he has a point. We’ve recently seen moonpig ipo and it has a rather large value assigned to it because it’s a ‘tech’ company that uses data to leverage consumer spend and provide a unique service.but in reality for many people it’s about as ‘tech’ as my Labrador and it’s just an online card shop that’s benefitted from all the high street card shops being closed.

Either way mudis makes a valid point.

Maybe they are about to go pure online toxic, they would sit nicely in our new Debenhams website a d we can certainly afford them!

Absolutely agree. I’m just hoping that having took a lot of flack, a lot of which was unjustified in my view, that Boris is actually playing the under promise over deliver card. If the vaccine roll out continues as is and knowing what we now know about the protection from transmission I really hope that we can get to a point where he announces that when the schools go back everything else can quickly follow (counted in days after not weeks). I’d like to think that he’s planning to hit us with great news but it’ll probably be just before rishi hits us with his budget which I suspect might dampen the party vibe slightly!

Gunner. Nice holding you’ve built up there. I love share save schemes as a method of saving/investing.

My dividends are auto reinvested in my sipp, isa and general share accounts and usually the payment is received on dividend payment date or the day after and its reinvested within 48 hours.

As for the number of Tesco shares you are holding in shareview I would echo tenapenny’s thoughts. Currently you have all your eggs in one basket. I know people who worked at Centrica who took part in the share save schemes and failed to diversify given that the company was essentially as safe as houses and it cost them.

Not having an isa will cost you in the long run too. I would look at setting up a stocks and shares isa with a provider of your choice (ajb, hl, Lloyds etc) and then consider either selling some tsc and moving the funds into your new isa or if you still wish to retain the tsc shares look into a service called bed and isa that most providers offer as it lets you sell the shares and rebuy them in the isa wrapper immediately so you are less exposed to price increases/decreases.

I’m not qualified to give financial advice and even if I was I wouldn’t recommend you listen to anyone on an lse chat board anyway. But I would seriously consider doing a bit of research into why it makes sense to have a diversified portfolio.
You have a choice in most isa’s to hold etfs, funds, investment trusts and trackers and these can give you exposure to USA/Europe emerging markets etc. In fact some providers such as ajbell and Hargreaves even have products that do the whole balancing stuff for you selecting a basket of funds that meet you risk criteria although I personally prefer to do my own investing. There’s a lot of good quality info online but also most isa providers will have good information on their websites (available to read even if you don’t have a product with them). Make sure you understand the charges a fund or investment trust charge.

Even if you think Tesco’s is only going one way (up hopefully) and you wish to retain your full compliment of 21,000 shares one piece of financial advice I am going to confidently give you is to look into getting your existing shares put into an Isa. If you do choose one that does the bed and isa process they may require you to move your existing shares from shareview to them first (that’s just a transfer) before they can do to bed and isa. So act quickly because if you get the ball rolling now you will be able to put £20k into an isa under this years allocation (before April 5th)and put another £20k into the isa under next years (after April 5th). Like I say even if you leave all your shares with Tesco this is worth doing because there will be no future tax liability on dividends or shares sold etc.

Hope that’s helpful, good luck.

Keep calm it won’t be at Burnley FC, rag said it’s remote so it must be further away from civilisation than turf moor :)

Buy now pay later is a bit like an interest free overdraft facility. If you buy the dress you need for your mates wedding or your download festival tickets and pay it back over 2/3 months then there’s no harm. The problem is that free money is often most attractive to people with poor self control/budgeting skills and they end up in financial bother.

I absolutely agree Dan that credit is an area boohoo would be best to stay away from because although it’s lucrative it comes with a lot of scrutiny, regulation and risk. It’s not just the pr around profiting from debt we’ve encouraged but imagine the field day the press would have when credit collection procedures are invoked.pretty little thing causes pretty big debt, boohoo the bankrupters. No I definitely think it’s something to stay away from for the foreseeable future.

Spicey - I do think the bnpl providers should be more tightly regulated given that, if I understand it correctly,
currently I could max out my credit card and overdraft facility and already be in financial trouble but I could buy using bnpl through klarna et al and no credit check is done at source so I can take on more credit even if I’m in distress. Problem is knowing the way our mp’s tend to work they will probably have a cross party parliamentary committee set up to fix buy now pay later credit and drag in kamani and Lyttle to explain why they allow it as a payment method on our website rather than invite klarna to explain themselves!!

Rag - in that case don’t bother bringing me back a baseball cap from the ASOS roadshow I’ll settle for you getting me an invite to the boohoo one!!