EBTM anyone follow? Next ASOS (or even half that!) or not? nm

Very interested by the potential here.

Dell - April t'over was £80k GROSS as per final accounts statement. Perhaps they state t'over gross in the actual accounts - £158k for Mar/Apr.

Profit margin 58.5% - assume stays at least this as volumes rise.

Expenses - stick my neck out and say £160k was parent company (see £80k at 6 months) and another £100k was cost of listing. So operating expenses were £107,637. So operating result was £94,336 loss before amortisation, interest and tax.

T'over increase from April £80k gross at £3k per moth to August £92k, October was over £100k, Nov £136k (per gg), Dec £230k (don't forget to deduct 16% av. VAT, gg). Pure guess Jan-Apr run at £107k rising to £116k per month. Makes total for year to Apr 2007 of £1,357k (43% up on Mar/Apr 2006) at gross margin of 58.5% = £794k gross profit, less operating costs of, say, £55k rising to £70k per month = £750k. Operating profit before amortisation, interest and tax of £44k??

To get to £546k operating profit to trigger the directors' warrants (not options, as someone said earlier) will take a gear change. This could be from Europe, but must also include critical mass being reached in UK. Which brings us to the two key questions in my mind.

1) Albeit their market is strongly defined, it does strike me as also strongly delimited (unlike ASOS who seem to cross borders to new markets with relative ease). Will they get the 2% of visits acutally buying significnalty higher? Is there scope to continually reinvent their market reach? Can they achieve critical volume?

2) Logistics (remember ASOS Xmas 2004!). GG amongst your extensive excellent research and analysis, what do you know of this. How big their warehouse and what room for growth at current site? Who does their distribution and what limitations on growth might this impose?

Very tempted to buy in at current 5p mid SP, but will try to be grown up and wait for interims by Jan 10 to see how the figures look, whether Europe is imminent post recent fund-raising and what otehr forward looking message they can offer us.

Last thought - very happy with where the new non-exec chairman has come from and his previous experience, especially since they have no exec FD yet.

Good luck to everyone - keep the thoughts coming.