Koovs Share Discussion Threads

[harebridge] 22/12/2016 17:24

Putting the £9.1 million loss into perspective.Last years total loss was £16.7 million, first half £5.7 million & second half £11 million.So at least their spend has come down compared to the previous 6 months.Peel Hunt estimate losses for the next 6 months to be £8.8 million.Peel Hunt's main worry isn't demonetisation- where Koovs have recovered to triple digit growth, but excess stock clearance & how they deal with it.Peel Hunt also state that Koovs is expected to hit peak losses this year, breaking even in 2020.

[harebridge] 22/12/2016 14:08

For some balance. From the same Stocko article (FWIW)Huge growth numbers but as Paul would point out, it is still at an early stage of development. In Mt. Everest terms, it's still not far from Base Camp!I do like the fact that it promotes its own label. With private label collections at a healthy 40% of all sales, that makes it a lot more than just an ordinary internet-based distributor.

[apad] 22/12/2016 13:24

From Stocko (FWIW):

"I don't understand why the company is operating at a negative gross margin of minus 20%.
To test the business model for future success, shouldn't it at least have the discipline to ensure a positive margin on sales? Anybody can buy something and sell it for 20% less than it costs to produce, surely?
I couldn't possibly buy into a retailer with a gross margin like this, so it's not for me."

apad

[melody9999] 22/12/2016 13:19

Miti 1856 - 1st sentence - good point. Thks for clarifying things.

[croasdalelfc] 22/12/2016 12:53

PLT didn't need to spend to gain market share.

[dvb99] 22/12/2016 12:07

This is a pretty poor update imo.
Best to forget about this dog, its going nowhere

[miti 1000] 22/12/2016 12:00

dan de lion,more like £80 million.

[harebridge] 22/12/2016 12:00

Koovs are aiming to break even within 3 years & have been more than doubling revenues year on year. Full year sales should show £20 million to £25 million compared to £10 million last year.

[dan de lion] 22/12/2016 11:56

So really they need sales in the region of £50/60 million before break even is reached!

[miti 1000] 22/12/2016 11:27

Melody , without getting into an argument , your figures are wrong. 12.9 mill was raised after the interim results according to the statement.

Fwiw, peel say net cash is at £14million.

I'm also under no illusion that Koovs will not be raising money in the next few years. They clearly alluded to that in today's statement which is in contrast to past statements.
I'm also prepared to wait 2 years cos I think the model will work but in the meantime I will not buy anymore shares for at least 18 months as they will surely be raising more money in that time.

[harebridge] 22/12/2016 11:19

Remember that Peel Hunt have been spot on with targets & analysis for Boohoo (LON:BOO) thus far

[harebridge] 22/12/2016 11:17

Obviously projected losses are huge, but then why put a BUY target of £1 & you have to ask yourselves why are Institutions ploughing millions into this?I couldn't get hold of the Peel Hunt note, but could you point out the positives please miti

[melody9999] 22/12/2016 11:15

Miti - you may be right.I'm not an accountant, but if losses are £9M, how can cash burn seem to be £24M ?

They had £5.623M cash at start of period, raised £26.2M during period but now only have £7.74M at period end?

I might be cynical but a lot of 'smoke and mirrors' around 'only' £9M figure?

Seems to ma the cash figure is critical because further cash calls will dilute shareholder value.

[miti 1000] 22/12/2016 11:09

I should add that according to Peels note today , which I've gone through, losses for 2016 are forecast at 16.7 million and for 2017 at 17.2 million ie. expect terrible figures for next 2 years.Simple as that !!

[mbmiah] 22/12/2016 10:59

Getting rid of high value notes could boost revenue here, short term obviously as the corrupt lot try to get rid of them. They won't be putting it in the bank will they?

[miti 1000] 22/12/2016 10:59

melody9999 , even though the losses at 9 mill are very large, worth remembering that they are inline with broker forecasts if you care to look at Peel's note for example.

[harebridge] 22/12/2016 10:27

"It has been another amazing six months of growth for both sales and new customers," Koovs boss Mary Turner said.Not for the share price Mary! Lol!

[melody9999] 22/12/2016 10:16

I'm staggered that this has not been punished today when you look at reactions to news elsewhere recently. I don't hold a position (thought tried to short this morning). It seems to me that the company is being run by marketing people who are being told that more funds will always be available - so keep spending. And they may be right - but shareholders will suffer as more dilutions seem inevitable. See my post 1826.

[harebridge] 22/12/2016 10:06

Also just releasedForbes: India overtakes Britain to become world's sixth largest economy.New Delhi: Indian economy has overtaken the Britain's for the first time in 150 years, thus becoming the sixth largest economy in the world after USA, China, Japan, Germany and France.

[duxy786] 22/12/2016 10:00

Nice buys going through, £12K added earlier

[harebridge] 22/12/2016 09:36

Peel Hunt note out possible 100% upsideOn Thursday Peel Hunt reiterated its broker consensus on shares of Koovs Plc Ord 1p (LON:KOOV) giving the company a 'Buy' rating.Peel Hunt gave shares of Koovs Plc Ord 1p a price target of 100 indicating a potential increase of 100% from Koovs Plc Ord 1p's current price of 50.0

[mrphiljones] 22/12/2016 09:34

22 Dec '16 - 08:58 - 1840 of 1843 2 0
For every £1 they earn the cost of the sale is £1.20 plus £2 in admin fees.

It was exactly the same a year ago.

Staggering,really is.....

[geheimnis2] 22/12/2016 09:30

One to watch