Section Items

Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

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Is This Just Pump And Dump?
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Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.
Financials
As companies often report numbers in slightly different ways there are a number of entries to cover this and as these are rough notes there will usually be empty items.

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Commentary On Ted Baker

Title: Ted Baker – Going Private Or Needing Money?
Company: TED - Ted Baker
Share Price Then: 475p
Author: Ian Smith
Date: Thu 03 Oct 2019
Comments: Ted Baker the fashion retailer’s half year results are out and the headline numbers are pretty grim.

Turnover is fractionally down on last year, down by less than 1% but a £25m profit have become a £2.7m loss before exceptionals/IFRS 16 and a £23m loss after taking them into account

The exceptional costs were £17.4m made up accounting adjustments related to last year’s acquisition of the footwear business of £3.5m, £2.0m investigation into the allegations of misconduct of the former
Chief Executive Officer HR-related complaints and £11.8m on restructure of our legacy businesses in Asia.

Changing to IFRS 16 reporting on lease liabilities accounted for another £2.9m of the loss.

This has been exacerbated by the well-publicised challenges that continue to face some of the Group's UK trading partners against the backdrop of the continuing shift towards an increasingly digital retail landscape.

Ted Baker is a luxury brand and to my mind luxury brands should not be affected so much by the move to on line shopping and referencing this as a reason for the decline may indicate that the brand is less luxurious then claimed or it is just part of an industry standard excuse.

The share price of 472p at the same level is slightly higher than it was in Dec 2009 when it started an upward rise to about 3,330p, dropping back to around 1,330p and then down to 800p when these trading results were suggested. Does this suggest a significant over reaction, as the current market cap is now at £210m?

It appears that the company is based around its founder Ray Kelvin, but he has a team that works with his style to run the business rather that he is the boss and he makes all the decisions.

Ray Kelvin actually left the company in March 2019 after allegations that he made people hug, part of what seems to have become the over top reaction to the Me Too movement. Since he left the former FD Lindsay Page has been running the business.

Reading various articles gives me the impression that the business wants Ray Kelvin back and it would be better if he came back, even if it means going private.

The brand itself is quite odd, it doesn’t have a lot of glamourous advertising and there are relatively few articles or reviews of its products on the internet. As the results have been bad comparisons have been drawn with Jack Wills and it is suggested that the company has become stale, but are these suggestions valid or just something article writers can suggest to get their article to the necessary word count?
Financials:
ItemCurrent PeriodPrevious Period
Year20192018
Period6 Months6 Months
Revenue£304m£306m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA
Statutory Profit(£21m)£19m
Adjusted Profit
Total Debt£153m£151m
Net Debt£141m£133m
Read Count: 131

Commentary History