Member Info for Soupdragon78

Agree, its always tricky to guess how many orders will go through The Edge, whilst John Lewis does a large amount VS have been contracted with Tesco's for a few years now and they are much bigger, yet the accounts don't show massive revenues.

Interesting pricing docs, thanks Implied. Pity I get annoyed by the typo's in there at key places. "Nest 70,000 orders per month" Aaaargh!!! How do these things get out of the office! Anyway, interesting to use those figures and work out revenues for say 10m units per year. This works out at about 11p EPS for VS, so a value of about £50k per year for LEG's interest. Its interesting that they measure in 10's of thousands per month, so would be anticipating orders through the system in the 100's of thousands. This can multiply quickly across numerous contracts. But I'm guessing that the clients will also continue running their original supply system for continuity in case suppliers don't move to the Edge.

VS is in its 'show me' stage, yes they have signed contracts but they need to prove that they can make money from them. VS have had a contract with Tesco for years and only manage just over £1m in revenues from all contracts. Hence the market doesn't value them massively yet. As I've said before, the VS model is to charge suppliers not the client, if suppliers don't sign up then VS don't make money but the client will still keep traditional procurement routes open rather than go short.

Wish I could charge £163k in expenses without having staff or an office. Its clearly a substitute salary for management as its consistent over the years. Even when little is happening to charge an expense on. Although Zaf does say he works 60+ hours a week looking at investments, quite amazing to say he's hardly made any and lost money on most.

Nothing wrong with taking profit Sam, that's the whole point of this game. Well done.

The follow up to this is that if LEG want to increase their shareholding from 7% to 10% as is occassionally mooted on other boards, they would need to pay as a minimum the same price that Nick Jenkins paid. So an additional 3% is 191,640 shares, at a minimum of £9.07 means it will cost LEG £1.74m to increase their holding. That is also assuming somebody wishes to sell them.

Sam, I see you've asked on the other forum about VS shareprice. The best way of calculating this is as below. We know that when Nick Jenkins bought the company had to be valued, it was given £58m as its valuation. They have 6,388,000 shares in issue held by various folk. So £58m divided by 6.388m gives a shareprice of £9.07 LEG has 475,000 shares in VS so at £9.07 per share the value to LEG is £4.3m So, if VS shareprice was £9 when valued at £58m, the SP valuation at £100m is £15.65 (£7.43m to LEG) at £150m its £23.48 per share (£11.15m to LEG)

marketmover, VS don't release that much detail on their accounts so its an unknown.

VS have the contracts in place, they just need to turn them into money now. Remember they've had the contracts with Tesco's, Argos and Maplin which are reflected in the last results and they still only have revenues of £1.35m.