Innovaderma Share Discussion Threads

[quant_investor] 11/3/2018 13:43

Thanks Connor. I’ll keep a watching brief here. The fact that product launches are happening in coming months rather than weeks suggests management may be taking a more cautious approach.

I agree Roots does give grounds for optimism and if they can get the product into a wider range of retail outlets post July it will do well.

Obviously the concern for the rest of 2018 is ST @SD. Had a quick browse and many products are still listed and available. They may just have overstocked.

[connor23] 11/3/2018 13:34

Probably true. Lucky HC raised that cash when he did! A lot of the heavy lifting in terms of launches should be this H2 but they will need to avoid running out of working capital in the Autumn as before. I expect the ST rollout to Boots for next tanning season so just need to be careful before then. If Roots keeps growing the way it has I think we will be okay but the cash situation is one I am monitoring for sure.

[quant_investor] 11/3/2018 13:29

True Connor Inventory did increase by 1.4m in the period but I do think they are going to have to manage cash carefully and product launches may hsve to be deferred or scaled back given uncertainty regarding SD orders going forward

[connor23] 11/3/2018 13:17

Quant. Cash burn = stock if you check the balance sheet.

[quant_investor] 11/3/2018 12:56

Cash at start of H1 0.2m
Funds Raised in H1 4.4m
Cash at close of H1 2.05m

Cash Burn H1 2.55m

Given H2 inflows will be up to £3m less than expected this does make you wonder whether the company will need to raise more cash.

FWIW I hsve no position here

[stimulationengineer] 11/3/2018 09:05

Ha ha Jam. I quite enjoy Remark's solitary ramblings. Shows a sense of humour albeit slightly deranged.

[jam4u2] 11/3/2018 08:56

Right back to twitter for me .... if anyone wants joining the group then DM me or find me as Jam4U on twitter.

[stimulationengineer] 11/3/2018 00:16

I think everyone here is on the same page, holders and derampers. We all recognise the huge potential of IDP as a growth company and either keep holding or have sold and want even more when they buy back. Best of luck to both but Honour is worth far more than money [imo....old fashioned that way].

[jam4u2] 10/3/2018 21:01

Beetroot, With regards SkinnyTan and IDP, I think you and me sir are saying the same thing, just from different angles. As when I read your last post I dont disagree with any of it and in fact I think is saying the same as me.

[beetroot juice] 10/3/2018 20:48

And as an aside. Transformative news is Due on ncondezi (NCCL) if your interested take a look. I am expecting many multiples of current price. If GE and CMEC confirm the Power Plant is going ahead or indeed there is talk of a complete Take Over.

I hold by the way..Just so you know.

[beetroot juice] 10/3/2018 20:35

Jam4u2 just so there is no confusion, my point above re multiple channels and product credibility. Is linked to Supposed slowing sales.

I am not doubting or questioning the Efficacy and quality of Skinny Tans Range, what i was attempting to highlight is the slowing down, is because of Superdrug exclusivity.

Regardless if SD have purposefully put a spanner in the works or not, it doesnt matter.

The Consumer will not in General Hunt Round all day for a Self tanning product, there are many to choose from. Some will, most wont.

The limitations that Exclusivity has on IDPs growth now are Huge. Early doors as i pointed out before, A few million pounds of sales of Skinny Tan via S.D. was great. But, as has been seen recently, that is the limit that a chain like SuperDrug can offer IDP. They just do not have the customer base or Doors to sell more.

This is where croasdale is Miss informing.

Skinny tan buyers are out there, many Thousands of them. Yet the stores they shop in..Do not sell it. Boots, Lloyds, Tescos etc etc.

For what its worth i think Skinny tan has done remarkably to generate so much in sales via Superdrug. As we can now see, for a much bigger, much hungrier IDP. Superdrug Exclusivity is now more of a burden. For S.D., IDPs marketing, that was and is still driving customers into their stores for Skinny tan, also meant these new customers bought other stuff.

Both parties have a lot to lose if they part company. Yet holding IDPs feet to the fire over further exclusivity is not the best way for SD to proceed.

Skinny Tans sales once in Boots Etc will Boom. Mr choudry knows this, so do the sensible posters on here.

[stimulationengineer] 10/3/2018 20:11

For transparency I haven't sold any but am in for at least 2 more years so fluctuations along the way don't bother me [too much] so long as revenues continue to grow, which they are. Interesting analysis on the current situation Jam. If you're right then there will be a slight lull followed by improved acceleration. Sounds good to me.

[jam4u2] 10/3/2018 19:46

I should add the hoodwink explanation is just my own view and opinion - I cannot ocnfirm thats what happened any less than anyone else on here (but I do think something like this or something very similar is what played out).

[jam4u2] 10/3/2018 19:38

Body Glow to me is another version of Skinny Tan. And indeed that's how IDP count and account for it in all RNS's. Stevie K needs a distribution channel and I suspect SD is not going to stock it - I reckon SD may well have hood winked IDP here. Let me explain ...

Last year SD suggested to IDP, you give us exclusivity again on IDP and we'll stock Stevie K in early 2018 but first you'll need to develop the range to be a full range... this has taken more time, money and effort taking us out to around now. Then SD said (because its taken more time), give us another year oh and if you dont we wont order Skinny Tan. This move to me seems foolish by SD and in the longer run will be prove to be an own goal IMO. IDP are now free to go negotiate where they wish and it is clear to me that Boots is waiting in the wings to take Skinny Tan. I strongly suspect Roots is now also on their radar too.

On your point re Roots as new product devt. This is of course the one, but that is not anything new this year. The same is true for Boots and Lloyds and ASOS. I believe ASOS is not a major channel for us.


Sephora is the online version in FR - I am not expecting great things from that to be honest. Besides it hasnt rolled out yet.

Basically, the core of the sales from this FY will come from what ever it is we know about now (ie. Skinny Tan on DTC and in SD and SD.com; and Roots in SD and SD.com as well as DTC).

[connor23] 10/3/2018 19:09

Hi Jam. I was thinking of body glow and Roots specifically in terms of new products, as well as Stevie K. Maybe I am expecting too much of them at this stage.In terms of distributors I was thinking of Boots Ireland, Lloyds as well as ASOS. Not to mention Sephora when it comes online this quarter (assuming no hiccups).I agree, plenty to play for in FY19.

[jam4u2] 10/3/2018 18:39

I think there is confusion here. Skinny Tan is a quality product - I dont think anyone is disputing that.

What is at debate is if the market growth of it is slowing or not. Clearly for this FY the growth is slowing - that is what Thursday's rns confirmed. Note it is still growing, but just at a slower rate. The RNS also explained why - SD didnt order more. It looks like the reason for that is that SD are wanting extended exclusivity and IDP are keen to go to other distribution channels.

I have read here and on Twitter for ages about how we need to be in Boots and other chains. This is it - this is the price of doing that move. The market growth re-establishes itself once we get into other distribution outlets. I know Boots UK want it - we are now in a position to give that to them. It will likely now be seen in the next FY. But that will mean a marquee name and a rocket under the share price no doubt.

Add on ProLong is ready to launch from next month in US & Australia, then you can see where growth next year will come. Oh and new Skinny Tan in US will be ready for next year too.

Its all about next financial year guys. Watch this space ...

[beetroot juice] 10/3/2018 18:20

So i read what Croasdale says as none sense. Skinny tan might have more products in its range .

THESE are selling Very well on the DTC website. That is Only 1 distribution Channel and only a Small % of Women know about it.

The rest of the ranges distribution, is crammed in to one Largish, yet not the best High Street Cosmetic Store. Ie Superdrug. A lot of consumers simply do not and will not shop there, it is like Lidl for groceries. A lower quality chain. Many will not use.

Does ST need to be in Their? Yes, Why Not? But it needs to be Everywhere. Then for many reasons sales would Exponentially increase. The more stores a Consumer sees a Product range in..The more confidence in that Product range. A shopper walks in to Boots, then Super drug, then Llyods pharmacy, then Debenhams, then Tescos and see "Skinny Tan" in all.

Thats when the consumer KNOWs this product is trust Worthy, worth buying/trying..IMO off course.

[jam4u2] 10/3/2018 18:16

Connor, Product Devt does not and has not equalled sales (not in this FY). If anything they equal cost as has been proven.

On distribution - aside from Boots Ireland, I am not sure there has been any new product distribution of any note?

If we were to hit 12.0m then I dont believe the RNS would have been as 'hard hitting' as it was. Here's a thought, why would the net profit be the same if it was to be only £12.0m - think about that.

[beetroot juice] 10/3/2018 18:11

Connor23> My opinion is after being a Fanboy, croasdale should first state if he still holds or has sold, if so when and why. That is the TRANSPARENT thing to do.


Yet he does not. One could be thinking MMMM, if Croasdale the BULL, is negative i am going to sell. But if Croasdale the Bull has Sold and wants back in cheaper, then let us know.

He has not stated his position. Does he have to? No of course not. But also his statements are either Written in good faith, or deceptive. If in good faith, he has a very childish grasp of sales and product distribution.

Statements such as all women in the UK now know about Skinny Tan and would go to Superdrug or DTC site... Is A deceptive observation OR a Dummies point of View.