Thread by @MBroomSmith

$BOO.L
Working my way through the prelims, thoughts:

- If you are not a cynic one could make an argument that #BOO should be included in an ESG fund because going forward they are doing all that an ESG focused company should do & investing is about the future not the past. 1/7

- US growth was 65%. They have captured 1.5% of the UK apparel market. If they were to do the same in the US this would give them US revenue of $30 billion. 2/7

- Growth:
“Revenue growth for the full year to February 2022 is expected to be around 25% at a group level, with newly-acquired brands expected to deliver approximately five percentage points of this growth.

This implies halving of growth of the existing business. Credible? 3/7

- Taxation:
“The effective rate of tax for the year was 25.1%“
#BOO pays corporation tax at an effective rate of 25%. Somewhat higher than the standard rate and higher than another online retailer I could mention. 4/7

Wages:
Number of employees was 3,042. Total wage costs were £138m. Deduct directors costs and we arrive at a figure of £117.5. This gives a remuneration per employee of £38,625 5/7

I see nothing not to like unless you see all fashion (fast or otherwise) to be morally repugnant and that we should all be wearing recycled sackcloth.

The market is still spooked by ESG concerns and I suspect the 20% underling growth forecast. Both of which are misguided. 6/7

I am happy to hold but as topping up would require selling something else I suspect my holding will remain where it is waiting for value to be recognised. My near term target is still £4 to £6 and on a 3 to 5 year view £10+. The latter is 26.1% annual growth in the SP. 7/7