Seraphine Share Discussion Threads

[catabrit] 30/11/2022 12:20

Kinda amazing that this was acquired by PE for £50m in 2019, IPO'd for £150m in 2021 and is now valued at £5m in 2022. You gotta love the stock market. This is priced for death but is a strong brand and I *think* has going concern value. It lacks the safety of some of the deep value plays I typically acquire - either through cash, assets, FCF or some sort of hidden value - but perhaps the brand is the safety net. I don't know. I have bought a couple hundred K shares as an option-like recovery play. Since the CEO likely cashed out millions when it IPO'd, bought £250k's worth in August when trading was beginning to recover I would wait for another large insider purchase before piling in. Because for me, that's the key signal - that's David's tell.

[blue59] 25/11/2022 09:51

LOL - it did, literally, spell it out from the outset!

[casholaa] 23/11/2022 18:53

I think so too, but I'm only going by the 'epic'.

[rambutan2] 23/11/2022 14:07

Holder Harwood comments:

"Seraphine has been struggling alongside all internet based retailers with the huge increases in customer-acquisition costs. Their stock position is elevated, but the brand well positioned and gross margins holding firm. Having listed at £150m valuation last year, we see potential to meet our target returns from the current market value of £9m."

[blue59] 09/11/2022 08:10

It hardly merited cutting and pasting!!

[rambutan2] 08/11/2022 22:31

Y/E trading update, 5/05:
Given well reported sentiment issues affecting the industry, the Group believes it prudent to re-set market expectations for FY23 and now expects to deliver sales growth of 10-20% and an improvement in EBITDA (pre-IFRS16) margin to 8-9%.




Final results, 1/08:
We are therefore updating our guidance for FY23 to deliver product revenue growth of 0% - 15%. The Group expects to remain profitable with improving margin throughout this range, however it is too early in the year to be able to guide to a specific EBITDA margin with confidence.

In the 52 weeks to 3 April 2022 the business delivered strong Product revenue performance though somewhat short on the previous full year expectations.

We delivered product revenue growth of 28.8% year-on-year to GBP44.0m, (+33.0% at Constant Currency (CCY)) and an adjusted EBITDA of GBP2.6m. This fell below previously guided expectations due to the final audit adjustments.

We finished the year with GBP2.8m of cash, having drawn down GBP3.0m of our GBP6.0m Revolving Credit Facility, equating to net debt of GBP0.2m at 3 April 2022.




Half year update, today:
-- Net debt at the end of the period was c. GBP3.5m, with cash of GBP3.3m and RCF headroom of GBP0.5m. Net debt position is expected to improve by the end of the second half in line with stock unwind.

-- Stock levels are expected to return to normal in the next 12 months and, with the high continuity mix of our product, we expect to be able to achieve this whilst continuing to maintain or improve gross margin YoY.

Current trading and outlook

The summer months have been particularly challenging, as they have been across the entire retail sector. However, a number of KPIs have improved through the period as we have executed on our stated plans to strengthen the business. The start of the Autumn/Winter season was particularly encouraging but more recent trading has been weaker, again, in line with the broader sector. We expect volatility in trading to continue throughout FY23 but believe H2 will be an improvement on H1 as we start to annualise against normalised returns rates and higher marketing costs and take benefit from seasonally higher basket sizes and lower return rates. As a result, we expect H2 to be profitable on a post-IFRS16 Adjusted EBITDA basis. However, we are mindful of the challenging UK economic environment and the impact on consumer confidence and disposable incomes.

David N Williams, CEO of Seraphine said :
"Along with many retailers, the summer months were challenging for Seraphine. The continued pressure on marketing costs and weak consumer sentiment, coupled with our own strategic focus on improving margins to drive future profitability, have resulted in a decline in sales over the period.

"An encouraging start to our Autumn/Winter season has been followed by more recent weaker trading. We have observed a declining trend in CAC inflation through the period, with an expectation that our strategic rebalancing of marketing investment will lead to further improvement in the medium term. Our outlook is for the second half to be better than the first given the extremely weak summer period and softer forward comparatives, although we expect performance trends to remain highly volatile throughout."

The Board will provide a further update in the Group's Interim Results which are expected to be published in December 2022.

[blue59] 08/11/2022 08:34

Looks terminal!

[blue59] 24/10/2022 07:44

Or much care?

[blue59] 21/10/2022 08:05

Anyone believe that this will survive?

Edit: Or deserves to?

[rambutan2] 27/9/2022 14:52

So no great surprise to see that the buyer of the 1.4m at 10p was Harwood, but in Oryx Trust (OIG) not more for Rockwood (RKW).

[rambutan2] 27/9/2022 03:38

Good spot. Horrible price!



So, looking at the shareholders, the 1.525m was the stake held by Independent Investment Trust (IIT), which is being wound up. The taker of 1.4m of them will be interesting to discover, but they certainly drove a hard bargain.

[darrin1471] 26/9/2022 19:03

3 million shares traded at 10p today?

[rambutan2] 25/9/2022 22:26

One of the five in Q2:

[blue59] 23/9/2022 16:12

Any charges being brought?

[rambutan2] 21/9/2022 23:02

This week last year was when it all started to go pear shaped,

and was half expecting another unpleasant update today. So no news is good news...

[rambutan2] 21/9/2022 22:51

Very clean set of votes at the agm:

[blue59] 20/9/2022 08:04

I stand corrected!

[paulypilot] 19/9/2022 19:58

That is untrue. The RNS clearly says, it was a transfer of shares from one account, into a SIPP.

[applied1] 19/8/2022 09:43

Has this company have anything to do with MTC ?

[blue59] 24/6/2022 11:23

And back to norm!

[blue59] 23/6/2022 17:10

That’s slightly out of the norm!