Asos Share Discussion Threads

[chiragmahe] 16/10/2022 09:11

what statement did asos make??? give link

[john09] 16/10/2022 09:07

Bad write up in the Sunday times. Obviously

[smart solution] 16/10/2022 09:01

ASOS have made a statement - good news.

[chiragmahe] 16/10/2022 07:55

Terrible news??? What happens Monday? Bankruptcy?

[buy2sell1] 16/10/2022 07:01

WORRYING TIMES AHEAD FOR ASOS PLC AS FINANCIAL CRISIS DEEPENS
==============================================================

Online fashion retailer, ASOS is facing another crisis after its biggest lenders hired advisers in a move that could pave the way for a formal financial restructuring.

Sky News has learnt that ASOS recently approached the banks behind its £350 Million revolving credit loan facility to seek amendments to the borrowing agreements.

City sources warned that lenders including Barclays, HSBC and Lloyds Banking Group have lined up AlixPartners and law firm Clifford Chance to advise them on the unfolding situation.

Worryingly for shareholders, one of the major trade credit insurer that provides cover to ASOS's suppliers in the event of its failure to pay them, is said to have decided to reduce its support.

That move will inevitably hit ASOS hard as it will be required to pay for goods up-front, tightening the squeeze on the company's cashflow.

Any alterations and amendments to the Revolving credit loan agreement will almost certainly be followed by an independent business review (IBR) to ensure ASOS can continue trading.

[wolfofhounslow] 16/10/2022 00:40

Results for the six months to 30 June 2022CONTINUED FINANCIAL AND OPERATIONAL OUTPERFORMANCEYü Group PLC (AIM; YU.), the independent supplier of gas, electricity and water to the UK corporate sector, and smart meter installation services, announces its unaudited half year results for the six months to 30 June 2022.Bobby Kalar, Chief Executive Officer, said :" We continue to reiterate our promise to keep delivering profitable growth and are confident this is set to continue.I'm very pleased to report another set of excellent results reflecting a strong and reliable performance. Remembering this is our fourth consecutive and consistent set of results I'm proud to confirm our key financial KPI's are performing well and have exceeded our forecasts following two recent upgrades. Revenue is up by 96%, cash in hand has increased 37%, average monthly booking have increased by 49% and EBITDA has jumped over 400% compared to H1 2021. Our strategy is working well and our strengthened and highly disciplined business driven by our joined up processes, people and platforms continues to deliver a seamless customer experience.Our digital transformation program is on course and several digital projects are now live and embedded into the business. We will see additional benefits of reduced operating costs, better efficiencies and greater predictability as we scale these digital channels.While I'm pleased with the recent government Energy Bills Relief Scheme announcement, pledging support for business customers with their increased energy costs, I fear businesses will feel the ongoing pressure of volatile wholesale commodity prices for some time. We will continue to work hard to help our customers manage these difficult market conditions.A GBP300m Mark to Market trading position gives me comfort our hedge book is very strong, in accordance with our hedging policy, and provides significant confidence in forward gross margin.The successful launch of Yü Smart is a game changer in terms of value chain ownership. As well as supplying energy to our business customers we have gained certification from the Retail Energy Code (REC) and approval from Elexon and Xoserve to operate as a Meter Equipment Manager (MEM) and Meter Installer (MI) for both gas and electricity customers, creating the opportunity to install and maintain SMETS2 meters. In addition, owning the asset, creating an annuity income, provides an exciting new value pool for the Group to benefit from. I look forward to updating the market as we rapidly scale this capability.We performed well in the pandemic; even better in 2021, despite challenges in the market; and we expect even better performance in the remainder of 2022 and beyond. I'm reassured our business continues to prosper and will use its strength and experience as an anchor for any further turbulence. As we continue to enjoy the fruits of our hard work, I look forward to delivering significant shareholder value in the near future.Finally, I would like to thank my wonderful team who continue to support the Board's target to achieve GBP500m revenue at over 4% EBITDA as soon as possible. "

[currencytrader1] 15/10/2022 21:18

HeresHopin

Posts: 17,853

Price: 531.50

No Opinion

RE: Seeking alphaToday 18:39
The article is too long to post here, but it is broadly very positive, whilst still realistic. It was written today, so is certainly up to date!

Summary parts below

We believe ASOS can survive any reasonable assumptions and that they will be well-placed when this environment does end.
Sentiment is now at all-time lows, with the share price today implying that ASOS will never recover. However, we see the issues as temporary, survivable, and recoverable.

Using prudent - below historic - assumptions on revenue growth and future EBIT levels, our base case delivers >35% IRR for the next five years.

Shares of ASOS Plc have continued to decline due to the headwinds they're currently facing. We believe that this is a temporary blip in a phenomenal 20-year track record of profitable growth, and that ASOS will survive and return to profitable growth in the medium term. Even at well below historic levels, this should deliver >35% IRR's for shareholders from today's share price

Conclusion
ASOS operates in a tight-margin and highly competitive space. We like ASOS's approach to the 20-somethings market, its flexibility to sell both its own and third-party brands, and the fact that it has avoided - and should continue to avoid - the scandals that Boohoo and Shein have faced by taking sustainability and supply chain transparency seriously.
For many of ASOS's headwinds, the worst should already be behind it (supply chain issues, freight cost spikes, and inventory build). For others, they might continue for some time (high inflation and a squeeze in consumer spending) but are ultimately temporary.

To model a breakeven scenario from ASOS's current share price, you have to assume that - over the next five years - ASOS spends £1Bn in capex and £1.1Bn in marketing, despite not growing revenues, and only makes 1% EBIT margins and sells for 12x EBIT/1.5x EBITDA. Given ASOS's unbelievable track record of profitable growth since it was founded over 20 years ago, we see this as highly unlikely.

We feel that ASOS has both a large price to value gap against its current share price, and that ASOS's value will continue to grow over time. The timing of a recovery is highly uncertain, and will be largely driven by external factors. But this has been factored into our base case assumptions, with a year's delay in any recovery and lower growth rates and EBIT levels going forward.

Looking at the structure and quantum of ASOS's long-term incentive scheme (ALTIS), we find the incentive scheme fair and proportionate to deliver shareholder value. If even the threshold payout of ALTIS is achieved, shareholders should expect a 5x-10x return on their investment in the next three years, far above even our bull case.

R

[gregpeck7] 15/10/2022 20:43

Sky news love being sensationalist.

[smart solution] 15/10/2022 20:39

HeresHopin

Today 18:39

Posts: 17,853

Price: 531.50

The article is too long to post here, but it is broadly very positive, whilst still realistic. It was written today, so is certainly up to date!

Summary parts below

We believe ASOS can survive any reasonable assumptions and that they will be well-placed when this environment does end.
Sentiment is now at all-time lows, with the share price today implying that ASOS will never recover. However, we see the issues as temporary, survivable, and recoverable.

Using prudent - below historic - assumptions on revenue growth and future EBIT levels, our base case delivers >35% IRR for the next five years.

Shares of ASOS Plc have continued to decline due to the headwinds they're currently facing. We believe that this is a temporary blip in a phenomenal 20-year track record of profitable growth, and that ASOS will survive and return to profitable growth in the medium term. Even at well below historic levels, this should deliver >35% IRR's for shareholders from today's share price

Conclusion
ASOS operates in a tight-margin and highly competitive space. We like ASOS's approach to the 20-somethings market, its flexibility to sell both its own and third-party brands, and the fact that it has avoided - and should continue to avoid - the scandals that Boohoo and Shein have faced by taking sustainability and supply chain transparency seriously.
For many of ASOS's headwinds, the worst should already be behind it (supply chain issues, freight cost spikes, and inventory build). For others, they might continue for some time (high inflation and a squeeze in consumer spending) but are ultimately temporary.

To model a breakeven scenario from ASOS's current share price, you have to assume that - over the next five years - ASOS spends £1Bn in capex and £1.1Bn in marketing, despite not growing revenues, and only makes 1% EBIT margins and sells for 12x EBIT/1.5x EBITDA. Given ASOS's unbelievable track record of profitable growth since it was founded over 20 years ago, we see this as highly unlikely.

We feel that ASOS has both a large price to value gap against its current share price, and that ASOS's value will continue to grow over time. The timing of a recovery is highly uncertain, and will be largely driven by external factors. But this has been factored into our base case assumptions, with a year's delay in any recovery and lower growth rates and EBIT levels going forward.

Looking at the structure and quantum of ASOS's long-term incentive scheme (ALTIS), we find the incentive scheme fair and proportionate to deliver shareholder value. If even the threshold payout of ALTIS is achieved, shareholders should expect a 5x-10x return on their investment in the next three years, far above even our bull case.

[john09] 15/10/2022 19:47

What are you smoking

[smart solution] 15/10/2022 19:10

Sounds like good news.....no dilution.

[dealy] 15/10/2022 19:07

if Asos is in trouble then the whole UK (including millions of workers like many on this message board) is in trouble. lot of panic making going on

[john09] 15/10/2022 18:30

The bad news isn’t priced in

Because more bad news just came out lol

[bluebear1] 15/10/2022 17:28

Cleaning up the balance sheet not a bad thing for long term recovery play.Looks like all the bad news priced in.As long as they don't breach any covenants then could be a positive step towards recovery.

[wolfofhounslow] 15/10/2022 16:02

Still time to buy YU group Current mcap 40m only

[wolfofhounslow] 15/10/2022 15:53

Wow could be nasty drop on Monday

[sparky333] 15/10/2022 15:52

Not looking old herehttps://news.sky.com/story/asos-troubles-deepen-as-lenders-fashion-balance-sheet-talks-12721011Should have moved into Energy like YU group

[melegramforttongo] 15/10/2022 14:07

Whatever happens on Monday , you can guarantee wolf 🐺 will make some rash decisions .

With a name like wolf 🐺 the guy is just asking for a kicking .
We shall continue to administer said kickings as usual .

[john09] 14/10/2022 16:27

Black Monday anyone ?

[losses] 14/10/2022 14:30

Keep buying these dips... double, quadruple your money in under 2 years

[factsandfigures] 14/10/2022 07:11

Recently released data both here in the UK and over in the USA continue to show that inflation remains persistently high, strengthening expectations for further large interest-rate increases from both the Bank of England and from the US Federal Reserve.

Further falls in consumer spending are inevitable as households are forced to cut back on non-essential spending.

Investing in shares in Retailers during a recession is a one way street to losing some or all of your money.

[millennialinvestor] 13/10/2022 13:47

Is the whole aim market being manipulated?

[john09] 13/10/2022 13:46

An awful lot if 12.30 spikes around. All have pulled back

[dissentingvoices] 13/10/2022 12:59

There is a lot of FAILED share ramping going on today here on ADVFN.







There is no substance whatsoever, to the false rumours being bandied about on here about takeover rumours.

ASOS shares have NOT been mentioned in any context on either CNBC or on Bloomberg today.

SMART SOLUTION is a fantasist.