DSH 0.00% 35.5¢ dshe holdings limited

DSH maybe sold stocks of more than $100m per month, page-2

  1. 1,787 Posts.
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    I suspect all that inventory they 'bought' in the lead in to Jun-15 was stuff they couldn't move (i.e. private label product customers don't want to buy) or leftovers from Christmas 2014 which should have been liquidated much earlier. I suspect they had to take on more debt / get cash wherever they could so they had stock people wanted to buy. The revelation that they borrowed $30m from Macquarie Bank to buy Apple stock is concerning.

    I think the below table is interesting, provides a breakdown of 12 monthly reporting periods for DSH under Anchorage ownership and following listing. The financials have been broken down to average store level data to (at best attempt) remove the distortions of growth in the store network from the financials (however we all know that newly opened store have different financial profiles to established stores)

    Column 1 Column 2 Column 3 Column 4 Column 5
    0 Store metrics ($'000) 2H13-1H14 1H14-2H14 2H14-1H15 1H15-2H15
    1 Reporting entity[/B] DSSH DSSH/DSH DSH DSH
    2 Stores (period end) 369 377 385 393
    3 Sales per store 3,288 3,256 3,336 3,358
    4 Gross margin per store 807 817 828 832
    5 Overheads per store 799 702 636 650
    6 Depreciation per store 32 34 37 38
    7 Net working capital per store        
    8 Debtors 75 124 207 136
    9 Inventory 647 673 872 746
    10 Creditors -715 -657 -878 -581
    11   7 140 201 300

    Whilst the analysis is crude I think it demonstrates that:
    • Little improvement occurred with store profitability
    • Overheads reduced but was probably thanks to the benefits of scale (though management did seek overhead reductions)
    • New PPE acquisitions had little impact on dep'n charges
    • Question needs to be asked about whether or not Anchorage left sufficient cash after IPO to fund working capital needs
 
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Currently unlisted public company.

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