Member Info for TalygarnTom

Indian stock markets have hit record highs this month. That doesn't tally with an economy in recession. The IMF still have India as one of the top 10 fastest growing economies in the world in 2019. The truth is it's a growth slowdown, not a recession. It may be true to say that demonitisation affected some parts of the Indian economy more than others. Diwali sales this Autumn look to have been much stronger than initially anticipated. https://economictimes.indiatimes.com/industry/services/retail/diwali-sales-give-retailers-relief-finally/articleshow/71798711.cms?from=mdr

I've been through the Koovs employees on Linkedin and I don't see any significant movement is staff. However, for the first time in a long time I don't see any vacancies either. What I have always found difficult to fathom with Koovs is quite why they need so many staff for a business turning over £6.4m. There seems to be a real problem with forecasting and the ability to align costs. With Koovs I think it's easy to become distracted by the vagaries of the Indian economy and lose sight of the of a business needing to do the basics right.

I anticipate trading is OK. It would be tragic for them to come this far not to raise the additional funds. But at the same time they have to cut costs and have clear sight of profitability.

Mary Turner 1st May 2016 said:
"We saw revenues growing to about GBP 10 million last year, (revenue at 31 Mar 2016 was actually £5.2m) which was three times growth over previous year. This year, we expect to see similar growth. We have said we will be profitable by March 2019 and we are delivering to that target, she added."

Profit before tax at 31 March 2019 -£15.51m

If you were the Chairman what would you do?

This is interesting. https://www.linkedin.com/feed/update/urn:li:activity:6604633484050993152/

Bacanora and Zinnwald are both high quality deposits.

Birge added: "I am incredibly excited to be joining ASOS. Its world-class brand and recent infrastructure investments mean it is well placed to accelerate its global growth plans, and I can't wait to join the team and play my part."
https://www.businesscloud.co.uk/news/asos-appoints-ecommerce-expert-as-chief-growth-officer
Global Growth Plans! - Dear Mr Birge, I attach a copy of the 2019 State of Fashion report published by world renowned management experts McKinsey & Company, India looks promising! Yours Baron Alli of Norbury #winwin

Page 24 onwards. https://www.mckinsey.com/~/media/McKinsey/Industries/Retail/Our%20Insights/The%20State%20of%20Fashion%202019%20A%20year%20of%20awakening/The-State-of-Fashion-2019-final.ashx

Has anyone seen a ball park figure for what FibreNation might be worth?

Tinker is partially correct. The possibility of a restructure here via a pre-pack administration is precariously high with Biyani and Alli running off with the equity. This is when you need your established institutional holders on board to fight your corner.

I would much prefer to see a more comprehensive solution where Biyani (via special resolution) is allowed to take a 50% stake in the business in return for sufficient capital to see the company through to profitability. I would also like to see a dual listing on the Indian exchange under the terms of such a deal. That would then give much more certainty to the business and help the shares to re-rate on a price to sales basis provided that profitability continues to move closer to break even.

“may no longer trade as a going concern” Is Alli going to buy it out of receivership?

Not an RNS to be seen. Not even a "we haven't got a ******* clue and know of no reason one."
It is laughable.

Chapsville86 - Is there any possibility that could, on just one occasion, make a useful contribution? You add absolutely zero value to this board.

https://fashionunited.uk/news/business/what-s-going-on-with-koovs-india-s-asos-wannabe/2019110746103

I have a very different thought process on where XLM might be heading. Ory and Inbal were very experienced with regards to sports betting, so why would the company move them if this was the future direction? The question I am asking is what does Stuart Simms bring to the table that Ory didn't? My suspicion is that the emphasis is going forward may more weighted to personal finance/banking. Stuart pulled of a signifcant deal with Wells Fargo whilst at Ratkunen. (scroll down here) https://rakutenmarketing.com/channels/affiliate/ . Thoughts?

I don't think we will see any significant movement until the cost of funding is announced. However, once we clear that hurdle the attention will then turn to the risk evaluation, which I see as limited, and the longer term NPV. That should see the start of the shares beginning to re-rate. It's a waiting game.

A Government loan guarantee would make such a big difference to the possibility of raising the money through convertible bonds at more sensible prices.

Most the names on this list are familiar, however, I scribbled down the nearest revenue and profit/loss figure I could find for each one. The one that was the most interesting here is FabAlley who ended their 2019 year with GMV of approx 126 crore versus Koovs 117.8 crore. However, interestingly FabAlley reported a profit of 3.3 crore at the EBITDA level versus Koovs EBITDA loss of £12.9m! It reported a net profit of 1.3 crore. Fab Alley are currently on course for FY GMV of 220 crore. (+75% on FY19)

FabAlley also retails via Future Group’s Central and Shoppers Stop, among others. It has 30% of the company’s overall revenues coming from its offline channels. This is expected to tilt towards 50% in the next 18-24 months.

However, according to Mint "around 45-50% of its sales from its own website are repeat purchases, while around 40% of the entire website sales come from foreign markets such as the US, UK, Middle East, and South East Asia"

https://www.indiaretailing.com/2019/10/23/fashion/faballey-announces-profitability-with-70-pc-year-on-year-growth-in-fy19/

https://www.faballey.com/

Looking good. https://store.steampowered.com/stats/

https://www.livemint.com/companies/news/amazon-s-bid-to-acquire-stake-in-future-retail-faces-antitrust-hurdle-11572617423646.html

Absolute nonsense.
Please don't just make things up. FLFL just raised $250m from Blackstone.
https://www.livemint.com/companies/news/future-retail-to-buy-group-company-s-infra-assets-for-rs-4-000-crore-11570942771706.html

Koovs has given an update on trade for the third consecutive quarter sinceit has been able to deploy funding raised in 2018. A 69% increase in Visits to the Koovs website and 100% increase in Gross Order Value (GOV) speak to improved fundamentals. Trading margin rose to 12% (7% 2Q 2018/19). These metrics are in line with pre-existing forecasts and are in line with this stage of the long-term plan. The company continues to report progress in its relationship with Future Lifestyle Fashions Ltd (FLFL) in areas like range development for FLFL, website services and physical trading in FLFL retail space. Koovs has updated on its funding position following the 21 October announcement that FLFL has had to re-apply to the Reserve Bank of India to make the outstanding £6.5m funding payment to Koovs under the Future Group Further Funding agreement of May 2019. There is essentially little new news except that FLFL is in the process of making the application and intends to honour its commitment either through the agreed mechanism (convertible preference shares) or alternatives to the extent possible. Koovs itself is also exploring other fundraising possibilities. Koovs has said that it will for now run the company in a more cash conserving way. This will involve cutting back on marketing and inventory purchases. As Koovs is contemplating fundraising options, as brokers to the company we are suspending our forecasts, recommendation and target price.

https://www.ibef.org/industry/ecommerce.aspx