Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Boohoo.Com. We currently have 152 research reports from 10 professional analysts.
Boohoo Group has released a brief statement confirming ongoing strong trading across its key brands (boohoo.com, PrettyLittleThing, Nasty Gal and BoohooMAN) and another record-breaking performance over the allimportant Black Friday weekend. Confirmation that the Group is trading “comfortably in line with market expectations” (FY20 company complied revenue growth consensus +37.6% YOY), implies growth at the top end of management’s guided 33% to 38% range. We upgrade our forecasts to reflect this, having previously sat at the mid-point of this range and the lower end of consensus. We see scope for history to repeat itself and deliver further upgrades in January, given management’s traditionally cautious stance ahead of peak December trading in contrast to ongoing momentum across the Group’s portfolio of brands.
An incredibly strong trading performance across all key territories and brands has driven H1 FY20 sales growth of 43% and seen the boohoo Group break through £1 billion of sales in the 12 months to 31 August 2019. Of note is the ongoing acceleration of growth in the boohoo brand, with Q2 FY20 sales +41% YOY, versus +27% in Q1, and 16.2% for FY19, an impressive achievement for the Group’s most mature brand. This solid first half performance underpins results for the full year, with the Group entering the key second half trading period which includes black Friday and Christmas with substantial fire power for investment in its core brands’ proposition as well the three new brands acquired in H1. At last nights close the shares trade on an FY20 P/E of 51.6x falling to 41.0x in FY21. We believe the Group commands a premium to the sector given its superior growth, sector leading levels or profitability and strong cash generation underpinned by a negative working capital cycle.
Boohoo Group has announced an upgrade to FY20 guidance on the back of continued strong trading momentum over its second quarter ended 31 August 2019. Strong revenue growth across the Group’s key brands (boohoo, boohooMAN, PrettyLittleThing and Nasty Gal) confirms the Group’s multibrand strategy is bearing fruit, with fears around potential cannibalisation firmly allayed. Top-line outperformance is driving operating leverage at Group level, enabling it to maintain full year EBITDA margin guidance at 10% despite the ongoing investment being made in the three brands acquired in the first half. Today’s announcement represents an impressive tenth consecutive upgrade in management guidance over the last three years, as the Group continues to outperform the market and consolidate its position as a leading multi-brand fashion ecommerce platform.
Bracken Trading — The Group undertakes its main trade of lending as well as electricity generation through the operation of two solar farms. Admission on the 09/09/2019 WORLD HIGH LIFE—The Investment Vehicle is to identify investment opportunities and acquisitions in legal Medicinal Cannabis, Hemp and CBD wellness sectors. The Company has raised £2,398,309 through three issues of Ordinary Shares to private subscribers.
Companies: LSAI MCL ALS CWR ALU KIBO IHC BOO EVG ZAM
Boohoo Group has announced the completion of the purchase of Karen Millen and Coast brands and related intellectual property, extending its offer into a new demographic and price point and cementing the Group’s status as a highly scalable, multi-branded fashion platform with the potential to be a leader in the e-commerce market globally.
ASOS Plc released a trading statement yesterday, with operational issues in both its European and US warehouses resulting in weaker than anticipated P3 performance and a downgrade to the outlook for the full year to 31 August 2019. The ASOS update serves to highlight the relative strengths of boohoo Group model, in our view, and reaffirms our belief that it deserves to trade at a premium to its peer. Boohoo has repeatedly proven its ability to invest ahead of growth and manage significant operational change with minimal disruption to trading. By owning all of its brands outright, boohoo also has full control of its own destiny. In addition, the diverging financial positions of the two companies is in stark contrast as boohoo continues to build its cash pile with £194m on its balance sheet, whilst ASOS has seen debt rise to c.1.0x EBITDA in a matter of months. We believe boohoo presents a compelling opportunity to invest in a fast-growing ecommerce business that is both profitable and cash generative. Trading on an FY20 PER of 44.3x, falling to 35.2x in FY21, we believe this rating is more than justified given the Group’s strong and consistent track record of profitable growth.
Boohoo Group has announced a solid start to FY20 in its Q1 trading statement released this morning. Revenue for the Group is up an impressive 39% YOY to £254.3m, ahead of ZC expectations (+32%) and market consensus (+35%), and against strong Q1 FY19 comparatives (+52%). There was growth across all brands and regions, with the Group continuing to take market share. This positive performance reflects the relevance and strength of the Group’s proposition, further evidenced by it topping the UK Hitwise rankings for the first time in May. Margin performance remains solid, with Group gross margin broadly stable YOY at 55.0% (Q1 FY19: 55.2%). The group was cash flow positive in the quarter with net cash on the balance sheet of £194m at the period end versus £191m at FY19 year end and £151m a year ago. Full year guidance is unchanged at this early stage of the year and we make no change to our forecasts this morning, although see upside risk to our numbers should the momentum seen in the initial three months of FY20 continue. We believe the boohoo Group offers an attractive opportunity to invest in a fast-growing ecommerce business that is both profitable and cash generative. Trading on an FY20 PER of 47.6x, falling to 37.9x in FY21, we believe this rating is justified given the Group’s strong and consistent track record of profitable growth.
Boohoo Group plc has announced a solid set of results for the full year ended 28 February 2019, ahead of our forecasts which were revised higher in January. In recent years the boohoo group has transformed from a single branded e-commerce player into a scalable multi brand platform with proven ability to execute rapid growth. Its disruptive model, centred on a customer led proposition with strong social media engagement is enabling it to take market share from its competitors. The Group’s well-invested infrastructure is now capable of supporting revenue of up to £1.5bn with significant projects including the Sheffield warehouse relocation and Burnley automation delivered in on time, on budget and with minimal operational disruption. In the year ahead, we forecast the boohoo group to break through £1bn of revenue and generate more than £100m of EBITDA. It’s growth rates and profitability are at a premium to its listed peer Group whist its brandownership gives it, in our view, unmatched flexibility in its proposition. Operational cash conversion in excess of 100% translates to positive free cash flow despite record levels of investment meaning it ended the year with net cash of £190.7m on the balance sheet giving it substantial fire power with which to execute its next stage of growth.
The boohoo Group has announced a 44% YOY increase in revenue for the four months to 31 December 2018 and upgraded full year revenue guidance for FY19. Trading over the key Christmas period has seen growth across all divisions and regions, bucking the trend of downbeat trading results seen across the wider retail sector. Of particular note, is this top-line progress has been delivered alongside a +170 basis-point expansion in Group gross margin YOY to 54.2%, at a time when heavy discounting has seen many of its peers’ profitability decline. This impressive gross margin performance YTD reflects the strengths of boohoo’s brand led model, giving it the ability to be more aggressive in its price positioning as and when the market demands. We believe the Group’s well invested model creates significant potential for further operational leverage as it builds towards its ambitious £3bn mediumterm revenue target. The business is backed by a solid balance sheet with net cash of £189m at 31 December 2018, reflecting the strongly cash generative nature of the Group. The shares currently trade on an FY19 PE of 48.1x, falling to 41.1x in FY20. When taking into account forecast earnings growth the shares trade on 2.1x, a notable discount to ASOS and Zalando.
Boohoo has released a short trading statement this morning confirming that trading to date remains strong, with record Black Friday sales seen across the group. The group continues to trade “comfortably” in line with market expectations and we leave our forecasts unchanged this morning having upgraded our numbers at the interim results on 26th of September. Boohoo is a well invested business with significant capacity for ongoing growth. It is backed by a strong balance sheet with net cash of £164m at interim results. At current levels, boohoo trades on an FY19 P/E of 40.8x falling to 33.5x in FY20 which looks undemanding versus its peers given a 2-year forecast Sales CAGR of 33.1% alongside an EBITDA margin of 9.5%.
Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m. Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.
Companies: DIA GHT CTEA CWR EVE BOO BOKU VELA BBB QIL
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Boohoo has announced another robust performance for the six months ended 31 August 2018, delivering impressive growth with profitability in line with guidance. Revenue of £395.3m is +50.4% YOY with the group achieving market share gains across its key focus territories and brands; boohoo (+14.9%), PrettyLittleThing (+132.0%) and Nasty Gal (+111.4%). The impressive top line growth delivered in the period combined with the group’s operational leverage and the benefit of its multi-brand model is reflected in the solid 200bps uplift in group gross margin to 55.3%. Adj. EBITDA of £39.6m is +42.6% YOY translating to Adj. diluted EPS of 1.39p (H1 FY18: 1.22p). Full year revenue guidance has moved higher today with growth of 38-43% now forecast (previously 35-40%), reflected in an upgrade to our forecasts. Following the acquisition of PLT and Nasty Gal, the boohoo Group consists of three fast-growing, vertically integrated brands enabling the group to generate levels of profitability well ahead of its peers. Trading on FY19 PER of 49.3x falling to 40.4x in FY20 its value looks undemanding versus its peers.
boohoo.com (BOO LN) Lead indicators at PLT suggest strong growth ahead - Buy | Fulcrum Utility Services Limited (FCRM LN) Solid H1 performance with guidance reiterated | Futura Medical (FUM LN) H1’s highlight focus on MED2002: funding options being explored | NCC Group (NCC LN) Solid start to the year | RhythmOne (RTHM LN) Trimming numbers, but profits are leaping | Trifast (TRI LN) Solid growth, trading in line with FY19 expectations | Vectura Group (VEC LN) More conservative stance on flutiform®, but significant upside remains
Companies: BOO FCRM FUM NCC RTHM TRI VEC
Research Tree provides access to ongoing research coverage, media content and regulatory news on Boohoo.Com. We currently have 152 research reports from 10 professional analysts.
|13Dec19 16:42||RNS||Grant of Options|
|09Dec19 12:56||RNS||Directors' Dealings|
|05Dec19 07:00||RNS||Result of secondary placing in boohoo group plc|
|04Dec19 16:46||RNS||Proposed secondary placing in boohoo group plc|
|03Dec19 16:54||RNS||Block Listing Application|
|03Dec19 07:00||RNS||Trading Update|
|25Nov19 14:01||RNS||NOTIFICATION OF MAJOR HOLDINGS|
Purplebricks interim results, in line with its 7 November update, reveal: Group revenue rose 1.9% to £64.8m on a pro forma basis (i.e. including acquisitions and excluding discontinued) split UK 73%, Canada 27%; UK Revenue fell 2.7% to £47.1m, with instructions down 15% to 32,850 and average revenue per instruction (ARPI) up 12% to £1,353; Canadian revenue rose 16.4% to £17.7m, with transactions down 4% to 20,486 and sellside ARPI up 15% to £728 and buyside ARPI up 19% to £3,595; Group gross profit was flat at £39.4m, with group gross margin 61%, down 130bps mostly due to the growth in buyside revenue in Canada; Adj Group EBITDA fell 48.8% to £4.3m with UK contributing £5.5m, Canada £0.1m and Homeday.de JV a loss of £1.3m; Net operating cash flow from continuing operations was £2.6m; Australia and the US closures going to plan, within £10-14m guidance; Cash at period end £41.6m fell £21.1m since 30 April 2019 (£62.8m) with £11.7m outflow relating to discontinued operations and £4.6m to investment in Homeday.de JV.
Companies: Purplebricks Group
The trade-off in the risk/reward for gold and gold mining equities is improving, as central banks push the current iteration of the post-World War II Bretton Woods financial order towards its limits.
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Disney+ hits 22m mobile users, SoftBank backed firm downsizes IPO, German mobile carrier selects Huawei
Companies: ENET 7DIG EVRH ZOO ZOO AMO BOOM MIRA MWE
Air Partner has acquired Redline Worldwide Ltd, a leading global aviation security solutions and training company. The total consideration is up to £10.0m (£8.0m initial/£2.0m deferred) and is being funded by existing cash and debt facilities and the issue of £600k worth of new shares to the operational management shareholders within Redline. The business generated revenue of £6.5m and adj. EBITDA of £0.8m in the year to 31st March 2019. The total consideration therefore represents an EV/EBITDA multiple of 12.5x. The acquisition is transformative for Air Partner’s Consulting & Training division, now re-named Air Partner Safety & Security, not least because of the proprietary software and elearning capabilities it adds. Based on Redline’s historic performance, post acquisition the Consulting & Training division will represent around 25% of revenue (from 15%) and 15% of operating profit (from 6%). This is in line with the Group’s strategy to diversify revenue and earnings towards this division.
Companies: Air Partner
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
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Dixons Carphone (DC) has reported 1H results slightly above consensus at PBT £24m (consensus £8m 1H LY £60m) in the less significant first half (both numbers presented on a pre IFRS 16 basis). Pre -existing 2019/20 PBT guidance of PBT £210m has been re-iterated and guidance has been given on a flat dividend expectation. The overall shape of the Group’s strategic projects re credit, online, customer service and mobile are progressing in line with pervious guidance.
Companies: Dixons Carphone
DWF has released solid H1 results and appears to be making good progress on achieving its strategic objectives set out at IPO. The Group has also announced the acquisition of leading Spanish law firm RCD, its largest M&A transaction to date. Our underlying forecast assumptions are unchanged today, albeit with the UK Insurance business making up for the softness seen in Commercial Services. We will revise numbers to reflect the announced acquisition on completion of the deal but based on conservative assumptions expect it could add c.6% to FY21 EPS. On an FY1 PE of 11.0x and a prospective dividend yield of 6.3% we see current levels as an attractive entry point.
Companies: DWF Group
Bowling, alongside low-cost gyms, is the strongest sub-sector of Leisure at present. Its fortunes have been revived over the last 5 years through product diversification, investment and a more family focused offering which is resonating with consumers seeking value and experiential treats. The sector is well established accounting for 3% of the family leisure market. We are attracted by its positive growth dynamics and minimal exposure to rising costs. We explore 6 themes in this note and initiate coverage on Hollywood Bowl (Buy; 250p 12m TP) and Ten Entertainment (Buy; 315p 12m TP), albeit with current year EPS forecasts 4% below consensus, reflecting recent prolonged hot weather concerns. On a 1-3 year view both have plenty of scope to further enhance shareholder value through self-help and site expansion.
Companies: Hollywood Bowl Ten Entertainment Group
Loungers continues to outperform, delivering the scarce trinity of LFL sales growth (5.4%), unit growth (10 openings) and margin growth (40bps). This drove a 22% increase in Revenues and 26% increase in EBITDA in the first half of FY20E.
At first glance, H1 sales growth appears more subdued than expected. This is because of a weak September, well flagged across the sector.
Companies: Joules Group
Techniplas –global producer and support services company providing highly engineered and technically complex components, making the supply chain to original equipment manufacturers more efficient. FYDec17 rev $515m. Circassia Pharma (CIR.L) - specialty pharmaceutical company focused on respiratory disease transferring from the Main Market. No funds being raised. Due 4 Feb. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected late January 2019. Chaarat Gold Holdings—RTO, the Company intends to acquire Kapan Mining and Processing CJSC, which owns the Shahumyan medium-sized polymetallic mine in Kapan in the Republic of Armenia. No raise, market cap of £110.1m, due early Feb
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On numbers M&S has reported a weak 1H with Underlying PBT of £177m (HY 2018/19 £213m re-stated) down 17% as the company suffered weak sales in Clothing & Home (LFL – 5.5%) and invested revenue in repositioning both sides of its offer. We would expect that the updated guidance and the 1H performance are likely to result in full year 2019/20 market consensus estimates staying at around £450-470m pre-exceptional items, implying less of a reduction in 2H.
Companies: Marks And Spencer Group
The group has announced a slightly better than expected H1 19/20 figures, mainly thanks to the improved efficiency and better sales volume in the Food division.
Companies: Marks And Spencer Group
Listed in April 2017 with a reorganized corporate structure, and led by a high-calibre operating team, Ten Entertainment Group (TEG) has developed a highly cash-generative business model that signals further growth prospects. By combining its operating formula with an integrated technology platform, TEG has set itself apart from competitors. With effective inward capital investment and its ‘Tenpinisation’ model, growth looks set to continue, and forecasts indicate a substantial increase in profit in FY17 and FY18.
Companies: Ten Entertainment Group
Legalisation of online sports betting in the US will provide opportunities for AIM online gaming companies. The Supreme Court of the United States has decided to overturn the Federal prohibition of sports betting. The state of New Jersey argued that congress had exceeded its authority and the judges agreed. The US sports betting market, both onsite and online, could be worth $6bn by 2023, but individual states will have to enact legislation to enable online sports betting to commence in their territory.
Companies: AOR TYR SML STR MWE RNWH