There's been a lot of discussion about Boohoo (LON:BOO) (I hold) over the years in the Small Cap Value Reports here on Stockopedia. Since the market cap is now over £4bn, hardly a small cap, I thought it was overdue to set up a separate thread.

News & views -

9 April 2021 - Update on Warehousing

boohoo, a leading online fashion retailer, is pleased to announce that following exchange of contracts, it has agreed a long-term lease for a new warehouse in Daventry, due to become operational in the second quarter of the Group's financial year. This site will support the Group's expansion and adds capacity in addition to its existing facilities in Burnley, Sheffield and Wellingborough. In aggregate, these sites will give the Group net sales capacity in excess of £4 billion.
The new warehouse is scalable, with the Group expecting to invest over £50 million in the coming years, increasing capacity and offering the Group operational flexibility as it grows. The deal is expected to secure up to 500 jobs and in the future create up to a further 1,000 jobs as capacity increases at the site.

My opinion - I think this shows the scale of the group's ambitions, and the significant growth in the pipeline - strong organic growth from existing brands, plus the new brands recently acquired (e.g. Debenhams & others).

For context, revenues for FY 02/2020 were £1.24bn. So planning for revenues of >£4bn is a step change in size.

In my opinion, forecasts do not yet adequately reflect the growth in the pipeline, which could lead to a re-rating of BOO shares. Together with the decisive action being taken to address ESG concerns, I think there's every reason to be optimistic about BOO's future prospects.

Views?

Regards, Paul.

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