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https://www.gov.uk/government/news/readout-of-the-chancellor-of-the-exchequer-jeremy-hunts-roundtable-with-the-oil-and-gas-industry
Basically, wasn’t really worth the effort although O&G now can be in no doubt where they stand.
“During discussions, he highlighted the importance of energy security in the aftermath of Russia’s war with Ukraine, and said that the Government continues to recognise the importance of the sector and the value of its investments.
He stressed that this was both as a key asset for supporting UK energy independence and ensuring a sustainable transition to Net Zero. He explained that is why the more investment a firm makes into the UK, the less tax they pay.
The Chancellor emphasised that the Autumn Statement was focused on securing fiscal sustainability after the two economic shocks of a global pandemic and a war in Europe. It required difficult decisions, and meant he was asking those with the broadest shoulders to contribute more.
He highlighted the sector’s contribution through the Energy Profits Levy, just over £40 billion between 2022-23 and 2027-28, which will help contribute to the funding needed to deliver the ongoing support schemes to businesses and households in light of high energy prices.
He also heard attendees’ views on the impact of the changes to the Energy Profits Levy.
The Chancellor welcomed the constructive discussions and said he looked forward to further opportunities for Treasury engagement with the sector, including through more regular Fiscal Forum meetings in future.”
It should have been - multiple investors but it's now obvious the burn and the lack of credit facilities meant they were distressed sellers. Simply put, any buyer probably looked at the books and ran a mile - not least due to the short term funding requirements. Trade buyers can now pick the bones out of administration. You look back to the acquisition of Trouva this year and wonder what the heck were they thinking burning through cash but buying another business....
So, they did suspend pretty much after the Oct 31st deadline they set in the FSP. They should, frankly, have mentioned in the FSP that the deadline was critical to ongoing operations.
Sorry to all that have lost out due to this shambles. The leadership team of this company should take a long hard look at themselves and what they've done here.
Have to say, I’m amazed it’s managed to limp along til the end of the week. I seem to recall from the FSP statements that the bidders needed to have submitted by 31st Oct and accommodate a cash injection at that point (or soon there at yet). As such, should we assume by made’s own estimates the cash reserves pretty much deplete shortly…? The Telegraph have reported that PwC are lined up as administrators although until there’s an RNS, all speculation. Good luck those still in - I hope a miracle happens for you.
The RNS these guys issue are pretty special - the continued reference to 'shareholder value'. I'm interested to see the actual strategy they have that can actually align with those words. Seems to be pulling in retail but to what ultimate goal?
i'm not sure they do have a good amount of cash with their existing burn but it would be helpful off the company actually clarified this. I'd assume the suspension of orders is to reduce any further cash burn but, dear me, what a mess. The management of this company should never be anywhere near a PLC ever again....
You’d struggle to imagine a situation where he didn’t / hasn’t.
They haven't been suspended as of yet. The BoD say that is a potential option. Have to hold my hands up and take this on the chin. How the CEO and CFO can manage to turn a 300m+ turnover business in to a basket case and then screw up a FSP with multiple bidders lord alone knows. The sheer level of incompetance is breath taking. I guess i should have seen those huge warning signs but honestly, this has to be the worst run company on the LSE. What a bunch of clowns.
I will never understand the return on investment modelling they carried out and made them pursue the French market before actually establishing profitability in the UK. Absolute insanity.
Cash burn looks v high. Disappointing that the FSP still seems at the tentative stages.
I can’t see anything other than a purchase by a competitor here. This is basically an opportunity to buy the brand, brand awareness and associated sales. You need to have an existing infrastructure so you can (basically) get rid of all central costs and just pick as a new sales channel. I can’t see a turnaround story here that would appeal to private equity. Anyone can see the amount of money that’s been burnt to get the Eve brand to this point. It would be a brave investor to give the current management more money to trying to make this work independently.
CFAN - Don’t get too excited by those round figure purchases. Two were mine on Friday. Just toe dipping again. I know some think this one is a busted flush but I maintain that the brand, product line and customer base has value (UK that is not the French disaster). Someone can buy a nice market share / homeware sales for this price. I’ll be amazed - absolutely amazed- if an investor or buyer can’t be found at these levels or multiples thereof. The CEO is supposedly a good marketer so she should be able to sell the company to someone!
That's quite the call for a company investing in Life Science development! You would assume that it would ultimately not be great PR for other firms looking at their services.
Because, other points. You cannot 'turnaround' a clinical research company. You fund to the point that the IP is ready to market or is attractive to a suitor. This seems to me to be a bizarre turn of events.
This evening's RNS is quite the shocker. I'm amazed that the relationship between DDDD and OF has broken so completely as to reach this point.
I ask the question though, what are OF hoping to achieve? What exactly will anyone get from administration. The value is the IP reaching the point of regulatory approval. This has substantially impacting the ability of DDDD's clinical trials to reach that point so has, basically, damaged the value of their loan /investment.
Does anyone understand that the end game is here?
good point by DG, they appeal to a different market segment buyer than say simba. Simba sells as a technical sleep product, eve sells as a lifestyle / ''wellness' range. Both are just about selling mattresses and other homeware bits and pieces and compliment each other. eve have value as a brand of that i'm sure.
I'd disagree with this. eve are a successful brand. They have label recognition and a product that gets best buy accolades (which are important in this market segment). They are not, though, a successful business so they need to find a larger co to take the brand forward. The value is definitely there in the brand (the sales back that up).
Forgive me if I'm wrong but they don't actually manufacture anything. They outsource and are basically asset light. The value of eve is in the brand and the brand alone (ok and the design IP). So, I guess, keep the design team and marketing team and dump everything else.
Btw, I didn't say sell on the cheap but I think the RNS signals they are distressed and simply put are looking to get suitors interested. I think it's a bargain for someone at this market cap if you can buy that revenue and absorb the costs in to your own structure. As I say, if I were DFS, I'd be looking seriously at acquisition (if their balance sheet supported). It makes a lot of sense for a legacy brand that want sub brand to appeal to and target other customs (I guess more young and lifestyle ish).
Also, Belgium is basically France+ I believe so hardly a huge expansion. Likely a throw of the dice to make the EU market penetration look more attractive but you'd assume any buyer would need existing EU infrastructure to keep that going as building out this far has so far been a huge wasted money pit.
I think that's what I said. The HQ and central costs needs to be stripped out totally and absorbed in to a bigger organization. I see no takeover whereby someone won't be looking to absorb the brand in to their own portfolio and strip out as much of the existing eve infrastructure and management as possible.
eve is a pretty sad tale of a huge missed opportunity. Obviously, they simply couldn't make the business work due to central costs (and some very poor previous management decisions at the height of the Woodford investment). The question now is what is the brand worth? You'd assume more than the paltry market cap with the amount of investment but will there be a white knight to rescue? You'd assume DFS would make a lot of sense to buy the company and shut the whole thing down leaving the name as a brand within their portfolio. I feel sorry for the employees but I'd assume this won't survive as a business, just as a brand name. Thing is, what's that brand name worth?