Member Info for WolfofWarks

PeePee - how do you know what they were interested in. You didn't know what Net Current Assets were the other day so why you feel you are the authority on this point is beyond belief.

Did you listen to the analysts call by any chance? That will give you a good idea of what the pros are interested in. It's all about costs control and future growth once the current poor climate for retailers subsides and how Boohoo plan to attack it.

It's not about what has happened in the last eighteen months which have been tough for all retailers.

PeePee - investors use EDITDA because it gives a good idea of cash generation from the core business. Accounts usually give both statutory profit and EBITDA and investors should use both as well at the balance sheet and cash flow statements to come to an informed opinion. No one measure should be used on it's own but investors like cash generation and therefore put more weight behind EBITDA. It's also less easily influenced by accounting tricks. Cash is cash after all.

'But thats not what you said is it?

You said ."They’ve got £300m in the bank!"

They havent, so that is misleading and factually incorrect.

Their OWN update states cash in the bank is a tad under £6m.'

The £6m is net cash - which is not the same as cash in bank. Cash and cash equivalents was £330.6m - this is money in the bank. Once we offset the debt it nets out at £6m.

So they have plenty of liquidity and do not need a placing, which was the theme from the start of the thread.

I'm working at the moment but I'm not sure what the excitement is about. $1m is not going to make a dent on $6.5bn. The saddest thing I guess is that when this turns around it'll be the chaps in the Cayman islands that will get the benefit of it.

‘generated £120M of FCF last year

Wasn't this mostly from getting rid of excess inventory? In other words, it's prettified FCF since it's not from normal sales operations and was more of a one off - basically undoing the previous mistake of being laden with slow moving stock.’

generated £120M of FCF last year ‘

Not quite they simple they also had large moves in levels of creditors and debtors which offset against this figure as you would expect. If you’re not buying as much stock they your creditor levels come down which is cash negative, etc, etc.

There was a net positive impact from the reduction in stock but taking that £100m number in isolation doesn’t reveal the true impact of the working capital management.

I tried to explain that to PeePee but he’s thick as mince.

‘Now im not going to be getting drawn into any 'debate' about this but they DONT have £300m in the bank. That is most misleading

Its a CREDIT facility, that they have ability to draw against, which is what they have done.

In essence It is not THEIR CASH its a loan, on which they pay fees.’

You could apply this logic to any item of working capital.

The fact is they have £300m of liquidity so do not need a placing. They also have levers they can pull to raise cash if needed. Like sale and lease back of the London offices.

I’ve wished patience all the best. Whether or not I think it’s futile is neither here or there.

So stop letting me live in your head eh? You’re getting like Elvis.

Why would there be a placement. They’ve got £300m in the bank!

Okehurst - none of it is fact. What is fact is the statement on both relisting and going concern from the interim accounts.

They are not working with LSE they are working with their NOMAD. They have outstanding issues in relation to governance processes and internal reporting which are being sorted.

These are the facts which are in black and white in the interim statements.

'This is now being driven by the AIM Team, they won’t allow RevB to re-list until it can sort out its capital - it’s why it hasn’t re- listed

The Company has no formal banking arrangement, the lenders won’t give them one until they re-list and AIM Team won’t let them until they do so and the auditors sign stuff off '

Listen mate - this is just your opinion and I don't believe it's anywhere near true. The company does have a formal baking arrangement - it has an RCF and has obtained waivers in respect of the recent breaches. The going concern comment is in relation to the risk of not listing, not the other way wrong.

There is nothing wrong from what I can see with Rev B's capital position. I would go as far to say given what happened it's in a relatively strong position under the circumstances which I think Boohoo knew and bought in at an opportune moment.

Unless you can point me to the regulations that you are referring to I think you need to have a decent read of the interim statement which explains the position in relation to re-listing and also going concern in decent length.

In what respect?

Nothing has changed from what I can see other than legal representation in the hope of forming a committee. SH are still no where near being in the money.

The company hasn't suddenly magically found $6.5bn and under no conventional method of valuation is the company worth over $13bn.

So as always watching with interest.

‘It’s pretty firm with the AIM team on re - listing from suspension, hence even though the audit for 2022 was signed off they will insist on ‘ going concern ‘ being 100% and as such RevB has not come back to the market - without a capital raise, but that will get sorted ’

Where are you getting this from though? I’ve never know going concern to be a condition of listing. It doesn’t make the slightest bit of sense. The market is all about taking on risk.

You don’t seem to be registering what the company have told us and have created your own version of events as you see them.

I’m just trying to understand on what basis you have reached your conclusion.

Exactly T4G you cannot throw up highly automated facilities like a pop up tent.

Even when it's opened it will take a while to get up and running. They'll be more exception costs in relation to it next year as they will be serving USA clients form the both Sheffield and USA due to the slow drip of new lines into the USA.

Okehurst. I'm not sure why you keeping persisting with this mate. The company have told you what they need to do to relist and they are working with their NOMAD to ensure that happens. They need to put in place extra governance procedures.

It's got nothing to do with cash in the bank, going concern, etc. Just read the interims it's all in there.

‘ It is profits that counts, not revenue, profits and profits alone, hence why the Boohoo share price is going down.

You can talk about free cash flow, US Distribution Centre, cost cutting, automation. ’

These are measures aimed at improving both profit and cash.

Go figure.

This is the problem with PeePee. He’s an absolute Dope.

Can’t do basic maths, doesn’t know anything about reading accounts, make sweeping statements about working capital yet doesn’t know what net current assets are.

It’s a comedy show and he’s the chief clown.

I’ve never abused patience if that is what you are implying.

PeePee - stop repeating the same point over and over like a raging simpleton.

We heard you the first five times. Shares can go down.

Go enjoy your £600k doing something productive. Maybe go and invest in an actual company and bore their board shi less.

I’m 54% up in about six weeks.

It’s been pretty incredible.

In what way? Tim Tok sell advertising space. How does this translate to them buying a cinema chain.

Tech companies are lean with little overheads. They dont buy bricks and mortar businesses. It's at odds with their model.