Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
Not expecting great news here, key update for me will be if the wholesale business returned after a 17% decline in SS16, how the online performance faired and if the margin performance held up after increased discounting? Viewing the online site, I'd have to agree with the activist investors that the brand as too much depth in stock, continuing to produce similar product lines with slight variations, Reiss / Ted look to be years ahead in appeal and style.
Breaking news. Mike Ashley as bid 27.5m outright to buy Agent Provocateur !
50glass - Totally agree. I've just been reading more of the details on this move and what I find interesting is David Reiss has made the appointment so he can focus on holding the Chairman position, allowing Christos to hold the CEO role. S. Marks clearly has no intention of giving up his dual role, as called upon by almost everyone invested in FC. Reiss is much more successful than FC and they clearly think Christos is the man for the next phase, so why did Marks not? especially when he was recruited by him? or is this move a vote of non confidence in FC by Christos?
Hi Korg Interesting to second guess Mike's intentions on FC. I personally think FC would do everything possible to avoid having one of MIke's guys on the board. I think there is a timing issue for Mike here. 1) If he's interested in buying the brand, then it makes sense for the expansion of Flannels in terms of the store portfolio and still been able to incorporate the FC brand into the Flannels product range, whilst running this from the Shirebrook HO / warehouse, giving up the FC Camden Head office (potential a saving of a 1m just there) However he will have to bid imminently if there are other serious buyers or the Oxford St site is potentially to be sold in the near future. 2) The other alternative is to still buy the brand but wait for the cash resources to run out in 12 months and purchase the brand at a much lower price, very possible should no serious buyers be around at the moment and more Mike's style. I think having a member on the board would be like a spy in camp against Marks plan to try to hold on to the business. Just my opinion but clearly trying to understand Mike's intentions are driving good debate in the media.
Hi Dalooks1 FC SP as a habit of uplifting in brief spells when optimistic news arises, only to lose momentum quickly on each occasion. What price would cause you to sell in the current situation? I'm invested with a sizable holding and I think 50p would cause me to sell my holdings on speculation without any firm offer. Just interested to see what credible posters would potentially judge as a good sell out offer in current times (without a firm offer in place) thanks
Dalooks1 - as you've mentioned before FC is a difficult brand to value. Based on the finance numbers alone, I think 35m is a fair / good price. If you add in the potential of the brand appeal if managed correctly with investment then I'd say 60m absolute tops. Mike Ashley is ruthless in his approach but also very clever, his history of trading and purchasing would indicate he'd be happy to sit this out, knowing Marks only as 12 months to turn the brand round before it becomes an ongoing concern and near worthless. History says that's when Mike will strike and acquire the brand for next to nothing. Only a counter offer for the brand will stop Mike holding off IMHV
Sports direct are focusing on Flannels in a big way at present. The Oxford street store would be a good location for the profile of the Flannels brand. Is a bid imminent whilst the Oxford st store is still part of the FC portfolio? Thoughts ?
Dalooks1- I hope your right on the rise. Unless their is genuine interest in the brand prior to a results update on the 14th March, I personally fear the worst for the SP. 4 weeks of don't rule anything out will keep things interesting if FC remains in the spotlight.
Hi All Schroders (FC's second largest shareholder) have dumped their entire stock holding in FC, selling to a mystery buyer prompting further bid speculation. This will be the majority of the 18 million share sell off earlier. News just breaking with the Telegraph! GLA
Just a thought (Dream) - Wouldn't it be great if Marks as sold 20% to a new CEO as he steps back from the day to day, holding the Chairman role only?
Trading update is 14th March, so i'm almost certain this isn't off any trading performance.
dalooks1 - You sure it was a buy? A 20% allocation requires a RNS if its the same purchaser / seller. Any guesses on what maybe going on?
That's 20% of the total share allocation listed as a sell but the price as gone northwards??? RNS tomorrow?
It will be interesting to see how this progresses. You made a great point a few months ago when you stated that the Oxford Street lease is potentially one of the brands best assets. If the lease was to be sold then I'd assume the brand will look to turn around the business under current mgt & strategy rather than a sale of the brand, as without the Oxford st lease surely the brand could only be worth the current 30 million valuation At the very best? Good to see an increase in coverage of FC as it seems to be driving some action at least. What effect will a poor trading update have? Clever timing by the activist investors.
Hi Dalooks1- I'd agree 5 million seems an absolute giveaway. This site would be ideal for Other Stories or Athropology, both expanding, trading from similar footage and exposure to a global customer base next to Selfridges. Hopefully with news out other brands will express interest and push the price up. 5 million would indicate a desparate measure for me, signalling that performance is potentially much worse than first thought?
Marks set to replace Dean Murray and Claire Kent after 9 years but is it enough and will it have any impact? As reported in the telegraph this evening. Personally I don't think it will make any difference. That he had to be pressured into this, speaks volumes of his lack of ability to be proactive over 8 yrs of poor performance, interesting to see if the market as any reaction to this tomorrow ref SP ?
Sunday times today highlighting fears of FC running out of cash by the end of summer and Marks not willing to be proactive in action. Surely there as to be a response from the FC board next week, if not then this for me would be a total disrespect to shareholders. With a new financial year ahead surely a strategy update as to be brought forward with decisive changes evident? Potential buyers will know the situation and I'd assume may hold off bidding to buy, potentially entering a bidding war when the company as no or little value in 12 months time. Let's not forget marks has made his money from FC, selling the business in the glory years, why would he care about shareholder value? GLA
Dalooks1 - I would be happy all things considered If your estimate comes good and agree anything below this is a major red flag. I'm going to estimate a loss of between -4.5m & -5.5m. I worry about the wholesale performance not matching the previous year, as the last update highlighted loss of business in this area and I'm not convinced this can return so quickly? Cash at the bank I will go for 10m Wonder if steady is willing to add an estimate? .
Lots of debate on this board recently. With year end results forthcoming in the next month or so, does anyone have any views on what the profit / loss maybe?
Morning Dalooks1 - I can't seem to find the after hours sell your referring to? How much was it for? From recent updates we know Jigsaw and Ted have performed well and new players such as joules if not the most direct competitor still a premium customers spend / market share. If FC announce any form of underperformance on their next update, it would be interesting to see what reasons are given, as competitor brands seem to be moving forward.