Regaining growth momentum-real cost of stock investment, page-25

Liquidity being low, consumer discretionary out of favour, US, UK consumer exposure that ‘forecasters’ are saying will tank, nil sales growth post balance date update by CEO all working to position decline in stock price. Fundamentals of great business still there.

What the CEO and Board can do is action what they can control:
- reduce stock at a faster rate, and
- complete earnings accretive acquisitions of substance that have not been performed since Evans in December 2020.

As this thread topic says, regain Growth Momentum.

By their own admission, the Board has announced stock will reduce by some $70 million in 2023 ie stock was over invested in, got it wrong by an enormous amount, which has meant funds have not been available to invest in non organic business growth including new geographic and new product line growth.

Your growth funds are tied up in inventory shelfed in warehouses across the globe.

The investment community is deeply disappointed and feels let down by the Board and CEO on this.

It has now happened, the Board should be humble about past errors made and move on to rectify and grow the business again at double digit top line rates, which is the baseline expectation for the current level of, only, sub $400m in annual sales.