Good morning!

Thank you for the suggestions.

Today I have covered:

I did not get to cover these three, but Avation (LON:AVAP) received some intelligent commentary in the thread below, if you're interested.



Boohoo (LON:BOO)

  • Share price: 272.4p (+12%)
  • No. of shares: 1.2 billion
  • Market cap: £3,160 million

Trading update

A brief but very positive H1 update from Boohoo. Performance is ahead of expectations.

Consequently, the board now anticipates that results for the current financial year will be ahead of previous guidance, with Group sales growth now expected to be between 33% and 38% (against previous guidance of 25% to 30%).

Assuming 35% sales growth, total revenues would climb to £1,155 million in the current financial year.

The company's broker thinks that only a tiny fraction of the revenue growth will come from Bohoo's recent acquisitions (MissPap, Karen Miller and Coast). So it's nearly all organic growth from Boohoo, Prettylittlething and Nasty Gal.

As far as profitability is concerned, EBITDA margin is set to stay around 10%, so the EBITDA result this year should be in the region of £115 - £120 million. The adjusted pre-tax profit forecast is now £96.7 million (previously £90.4 million)..

My view: I'm impressed, of course. Boohoo has a great track record of profitable growth and of beating expectations.

As mentioned before, one of the things which holds me back from investing is the fact that Boohoo only owns 66% of PLT. Last year, out of £47.5 million in group net income, £10 million was attributable to the minority shareholders (i.e. to the family behind Boohoo (LON:BOO) ).

Maybe this doesn't matter, if the total pie will ultimately prove big enough to justify today's market cap of around £3 billion?

Elsewhere, I note that the valuation of Marks and Spencer (LON:MKS) has dropped to sub-£4 billion. Seems to…

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