|hazl: interesting imo
Similarly, Koovs plc, an online fashion retailer specialising in women's clothing, saw its share price fall 37.9% from the previous quarter. Recent discussions over a fundraising exercise to cover rising marketing costs is the most likely cause of this falling share price. In the year to 31 March 2015, Koovs' marketing costs were INR210 million (£2.1 million) greater than anticipated. However, Koovs is not the only fashion retailer experiencing a rise in marketing costs, with ASOS reportedly experiencing similar issues.
- See more at: http://www.grant-thornton.co.uk/en/Thinking/India-Watch-Small-Cap-Index-falls-further-in-Q2-2015/?previouspage=7262#sthash.kiDDx5cb.dpuf |
|harebridge: The article you're talking about was from Paul Scott- or 'Paulypilot' as he's known by on Advfn.Trading update - the market is seriously unimpressed with this update, with the shares down 45% this morning. Growth for the year ended 31 Mar 2015 has been strong in percentage terms, with sales up 268%, but it's coming from a very low base, so £720k last year, and £2.65m this year just finished.Koovs is an early stage fashion website in India, and it was hyped up as being the next Asos, since its Chairman, Waheed Alli was involved with Asos for many years.Trouble is, it's not easy to create a successful fashion business online. People mistakenly think there are few barriers to entry, whereas actually you have to invest a considerable amount in warehousing, stock, the website itself, but then of course you have to spend millions on marketing to drive customers to the website. In this case the company says it spent £3.2m on marketing in the y/e 31 Mar 2015, so that's more than their entire turnover! This was almost three times what was originally planned.There was net cash of £12m at the year end, so at £15.7m the market cap actually looks quite reasonable, and I would have been prepared to take a punt at this level. However, the fly in the ointment is this statement, which looks a massive own-goal to me;My opinion - telling the market that you have £12m, but that you're going to spend the lot and come back for more, is a ridiculous thing to do, in my opinion. Of course the shares are going to be smashed down, because everyone will just wait for the Placing, instead of buying in the market now.Having said that, I am tempted to have a nibble at this level, as the market can suddenly change its focus to growth rather than cash burn. Also, maybe existing shareholders might tell the company to manage with the cash they already have, rather than agreeing to a further fundraising? Lord Alli owns 19.6% of the company himself, so presumably will not be keen on dilution at this sort of price, which makes it all the more perplexing as to why this has been handled in such a ham-fisted way.The market is being brutal at the moment towards micro caps that come back fro more cash, just look at what happened with Synety recently - its share price halved on a tiny follow-on fundraising. |
|harebridge: It's not the norm to mention a placing, because the vast majority of companies, especially in AIM only leak this sort of news to their 'mates' who will benefit from a placing at a much lower price. Long suffering PI's, who are always the last to know, just sit back & watch in bewilderment, as the share price is sold down/ shorted & drifts down to the placing level.So fair play to Koovs, for being honest. The markets aren't used to honesty!The potential in India is mind blowing. The team here is vastly experienced in this field (Ex ASOS).Tested the water on Thursday & will add over the coming months pending the outcome of the placing. |
|hazl: If we don't hear anything before; then next preliminaries are 2nd of July....not long to wait.
Have been pretty impressed with how static the share-price has remained in the last weeks since the announcement and of course the director bought shares on the drop.
|nina65: Home / Corporate / Shareholder Information
Koovs plc ordinary shares are admitted to trading on the AIM market of the London Stock Exchange and the Company has not applied or agreed to have any of its securities admitted or traded on any other exchanges or trading platforms
This information is correct at 10 March 2014
Shares and shareholdings Ordinary Shares
Total number of shares in issue: 24,110,719
Silvergate Investments Ltd 4,714,286 (19.55%)
Exicom Telesystems (Singapore) Pte Ltd 3,622,283 (15.02%)
BlackRock Fund Managers Ltd 1,702,080 (7.1%)
Hargreave Hale Limited 1,702,080 (7.1%)
Henderson Global Investors Limited 1,702,080 (7.1%)
J O Hambro Capital Management Limited 1,702,080 (7.1%)
JPMorgan Asset Management (UK) Limited 1,702,080 (7.1%)
Smith & Williamson Investment Management LLP 1,418,400 (5.9%)
Lord Waheed Alli 4,714,286 (19.55%)
Mr Anant Nahata 3,622,283 (15.02%)
Mr Robert Bready 838,095 (3.48%)
Share options granted
Name Date of grant Exercise price Number of shares
Roy Naismith 3 March 2014 150 pence 241,107
Dame Gail Rebuck 3 March 2014 150 pence 60,277
Emily Sheffield 3 March 2014 150 pence 60,277
Options are exercisable, subject to performance conditions, between 3 March 2018 and 3 March 2024.
Restrictions on share transfers
There are no restrictions on the transfer of shares.
As far as the Company is aware, the percentage of the Company’s issued share capital that is not in public hands is 38.1%.
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