- for speed listening, go to the settings wheel on the bottom right of the video and choose playback speed - after one minute video becomes high-resolution.
Intro, Cap and Legal Structure - 27Nov23
Valuation, Investment Discussion- 27Nov23
Apparel in the UK - 27Nov23
FX and Inflation - 27Nov23
Drivers and Model - 27Nov23
Please find our updated model here.
Operating momentum has returned to Matalan with a strong performance in September (back-to-school) and October. Despite H1 weakness of £20m in
The company issued a very bullish outlook for the rest of the year, driven apparently by very strong trading in Q3 so far. We frankly struggle with the
Ouch, those sales figures are low. But on the flip side, management have held up margins and markdowns, so that EBITDA is pretty much on
Yesterday, Matalan announced that Jo Whitfield, the CEO, is leaving the Company. Over the past few months, we have become increasingly
Please find our updated analysis of Matalan here.
As flagged following last week’s call we have been disappointed by the results and are concerned about the business over the coming year. There have been warning signs
Please find our unchanged analysis of Matalan here.
Matalan follows up its disappointing Q4 with a more disappointing Q1, where the cost position was even a little better than forecast, but revenues again fell short of our forecast,
Please find our updated model for Matalan here.
2024/25 will be a challenging year. The company is facing a mountain of cost increases it has to overcome. On top of that, management are so bold as
Matalan reported a strong Q324 today - £5m better EBITDA than we had projected. More importantly, we had expected the company to kitchen sink Q4 with
We have been covering this name for a very long time, long before we added videos to our platform. So to bring the name in line with
Please find our updated analysis of Matalan here.
Fundamentally, Matalan maintains its steady position in UK apparel retail, neither growing nor shrinking over the past 20 years, and gained market share during the pandemic as competitors exited. The low-price sector remains insulated from online
October inflation has come down to 4.6% spilling water on Sunak’s mills. The move is not entirely unexpected, but nonetheless positive for
The retailer had a strong underlying quarter. Volumes were down but planned for, such that inventory is at -16% YoY. Average sales price was up 16% in return, yielding
Matalan has paid its coupon in cash. We generally regard this as a positive sign the company is
Please find our significantly updated analysis of Matalan here.
I’m an alum of the University of Chicago and so - believe me - markets are efficient. Well, almost. If exceptions define the rule, Matalan should be a case in point. The retailer has gone
The first results after restructuring are rarely good for any company, but it’s hard not to feel a little disappointed with zero EBITDA. Apparently,
Strange going-ons at Matalan where the company chose to pay cash coupons, but is now drawing the additional
The retailer has notified the market in line with previously communicated timing that its restructuring has been
Please find our updated analysis of Matalan here.
While we are still chasing unexplained cash outflows of £30m in Q4, we are comfortable with the retailer’s overall position and the future economics we have lined up for. Quoted prices for the bonds today are net of value that has been attached to other notes, but
Please find our unchanged analysis here. An update will follow shortly.
As per this morning, there was nothing in the release that would have changed our view today - nor the way we would like to be positioned. We are not sure why the release comes so late - today being the last day and there seems to be plenty of confusion in the market as to which
Quite some detail has of course been leaked already, but we are at this time still eagerly awaiting the company’s cleansing statement. On Friday, quotes for
The company today announced receipt of consents by the requisite super-majority of SSN holders and, accordingly, the extension of the bonds by
Please find our updated analysis here.
It’s no longer just about inflation. Even as we had anticipated lower cash levels, reported earnings were disappointing, but on the surface results did not deviate
We understand the 2nd Lien holders have put in a bid for the company. The offer allegedly rests on the £200m staple finance offered by the 1st Lien holders, includes cash
Ahead of Monday, we are expecting no further news on the current process until mid-December. However, in line with recent publications, we expect
The company this morning released a cleansing statement on a restructuring roadmap that reflects the all-around reluctance of restructuring Matalan, both, naturally from
The retailer was in the news over the weekend. The times ran an article suggesting that the Hargreaves family is looking for a buyer of the business or a
Sky News were reporting that in recent days another offer from Hargreaves to Matalan lenders has fallen flat. According to the newspaper, the offer may
Recruited only two years ago, Chairman Steve Johnson has stepped down and has been replaced by John Hargreaves himself. We can only imagine that he found his role
Please find our unchanged analysis here.
Of the tailwinds management cited for 2022, one related to 6-7 weeks of lock-down in Q122, relative to which the chain should outperform in FY23 (to February 23), even as the online store had compensated for some of the lost sales last year. From there we are netting off and putting into perspective Matalan’s Ost recent results to try and arrive at an underlying base EBITDA for FY 2023. So looking past the restructuring/extension efforts, how does the normalisation of the fundamentals stack up so far and when taking everything into account, how deep is this valley and how steep is the other side?
The retailer today revealed a new £60m 18-month facility to help preserve liquidity as it returns its super senior CLBLIS and 0.5 lien notes. While the