Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Positives PLT. UMAR you're absolutely smashing it! To grow to nearly £80m from £30m in the same period the year before is just crazy, and what's more people are desperate for the clothes as margins are up nearly 5%... Absolutely amazing story & one of the best parts of the update. CASH. To grow cash by £18m while fitting out an automated warehouse speaks volumes about the companies ability to generate cash- something other peers such as ASOS do less well. Middle-Ground NASTY GAL. Growth of 150% sounds great, but it's not blowing it's lid like PLT did. However, at the same time it's good growth. I had hoped for 50m from NG this year, and we may still see that- theres a lot still to play for FORECAST- no upgrade this time, but no retrace either, and it was a strong forecast to start with. There is still plenty of time to upgrade at H1 or Q3 too, and Q1 has exceeded that guidance, so early days! Negatives BOOHOO brand- i expected more than a mere 12% growth from them, at a lower margin than last year. On the plus side they say that margin is increasing, and although 52% was lower than last year, it was higher than expected. The Paris Hilton collab will hopefully breathe some life & momentum into this piece of the jigsaw, especially as yoy comparisons now get easier... Fair summary?
Hi Mark, good question. I have basic EPS down as 3.5p end of year, which makes PE-ratio of 61 at year end based on share price of 215p. Adjusted EPS though I'm expecting over 5p, which makes it 43p on an adjusted basis
So overall, although revenue growth I had pencilled in at 55%, and it was a little lower, margins were very strong at 55.2% well ahead of what I expected, so gross margin which it what is key here, at 101m was 3m up on my estimate. I'd call that job done! Great cash balance too...
Agreed. I think the key is going to be having 'no bad news'. The results don't have to surprise us, but there can't be anything negative in there. For me it's £185m+ revenue, at decent margins (52-53%?), with an EBITDA reiteration of 9-10% and a revenue guidance upgrade. That lot should deliver reasonable growth. Anything negative (or perceived as negative) such as no revenue forecast upgrade, or a reduction in EBITDA forecast like September, or a delay in warehousing etc etc would be bad. For me though we are in a good place with a lower share price, a lower PE Ratio and another year of growth under the belt!
Phew been in a meeting all afternoon with one eye on the price but not able to comment... great finish! I'm all in based on the strong forecast they put out, the Zendaya edit, the PLT growth, the hot May and the warehouse news. I think as long as we get a strong Q1, 5% revenue upgrade & margin reiteration coupled with no sells we will see a nice rise to 230. Anything more will see a short squeeze to 250-270 level if Canada close..