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Doesn't today's price action show how the market rewards cash generation and not revenue growth in this macro environment? Fair play Jose, I like the turnaround story and despite the challenging conditions you're pulling it off. All it takes is cost of living and interest rates to reduce and we'll be back to growth, but this time with Jose at the helm, I believe he'll achieve growth in a sensible way. He won't want to have to turnaround asos again.
Headline of 18% rev decline is horrendous. But looking under the hood, the FCF graph paints a much better picture. Net debt was the main reason why I thought there was serious risk of the business going bankrupt. This shows Jose is focused on cash generation rather than revenue, with the plan to grow revenue again in 2025.
I've seen it on their website, not so many clothes heavily discounted, which I'm glad to see. Would prefer to be lower revenue, high cash generating business given their issues with margin in recent years.
OSG, a "strategic partnership" could take many forms. One way I'm thinking of is, yes issue of more shares in THG to be issued to the partner, but for THG to be issued shares of equal value in the partner company. Then as the two company's work together, they grow and create value faster than they could do on their own?
The SP would re-rate just on the news given a better outlook. Need to make sure the partner is the right one though.
We shouldn't need to lose as shareholders, so long as Matt gets a good deal.
Ste2k, my source the multiples are based on global data :)
Ps it's not true to say that US valuations are double the UK even from your own source, in fact, your source suggests that US Consumer Discretionary valuations are the same as the UK and for Information Technology the UK has higher valuations.
Again Ste2k, what is your source? You're just plucking numbers out with no backing source of information.
Amers, you're thinking too rigidly, the market can ascribe a higher or lower valuation based a range of possible outcomes, and I think most of us here believe it is at the lower end. It can quite easily turn for no apparently reason (I.e. based on sentiment alone).
Ste2k, what is your source for coming up with that calculation?
My source: https://www.equidam.com/ebitda-multiples-trbc-industries/
Yes Ste2k, ongoing EBITDA of say, £150m-£200m (£161m achieved in 2021), using an industry EBITDA multiple for e-commerce and marketplace services of about 19x is £2.8bn-£3.8bn valuation = £2.15-£2.92 per share.
Probably £2.50-£3.00 if MM can either:
Pull off Ingenuity, and do as he said, bring in high GMV clients (not yet happened).
Or stop funnelling cash to it, start to grow the other divisions again and grow profits.
Don't know whether it's coincidence but saw Halfords had a similar spike about an hour after THG. Obviously we've had Currys as well this week so could there be a flurry of purchasing/takeovers by the big players for UK retail companies in Q1 like someone posted here a few weeks ago?
Wildtiger you're dense. You supposedly play with hundreds of thousands yet you only take profit for a couple of %. You could play with a lot less and take a longer term view and make just as much profit (or probable losses in your case).
Hardwell, stop spreading fud, a company cannot just delist itself without buying out its shareholders, unless it goes bankrupt.
Interesting how the market knew early Friday morning... looking forward to an exciting few weeks/months!
"Why, oh why are so many corporate videos so truly dire?
Last week's column for The Times. With honourable mention to Matthew Moulding who at least – in his latest slick video – manages to compare himself to Robbie Williams, David Beckham and drug cheat Lance Armstrong. That's chutzpah."
Moulding replied:
"Matthew Moulding
Founder & CEO at THG | Building a global giant from the UK
29m
Funny. If you’d watched the video with any diligence you’d have noticed 2 big errors in your story: 1. Lance Armstrong isn’t in the video whatsoever 😂 2. The video relates to THG and our people 🙈
But hey, who at The Times let’s the facts get in the way of fabricating a story to run down Britain’s entrepreneurs and their companies 🙄
Thankfully Britain has City AM to champion businesses 💪🏻"