New Risk • Jun 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 14% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$12m free cash flow). Negative equity (-AU$21m). Earnings have declined by 46% per year over the past 5 years. Shareholders have been substantially diluted in the past year (66% increase in shares outstanding). Market cap is less than US$10m (AU$11.2m market cap, or US$7.42m). Minor Risk Share price has been volatile over the past 3 months (14% average weekly change). Announcement • May 16
Booktopia Group Limited Announces Resignation of Fiona Levens as Chief Financial Officer Booktopia Group Limited advised that its Chief Financial Officer ("CFO"') Fiona Levens has resigned effective 15 May 2024. Ms. Levens with remain with Booktopia during her notice period to support an effective transition. Buy Or Sell Opportunity • May 09
Now 22% undervalued Over the last 90 days, the stock has risen 5.0% to AU$0.063. The fair value is estimated to be AU$0.08, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.5% over the last 3 years. Earnings per share has declined by 29%. New Risk • Mar 07
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$12.5m (US$8.22m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Negative equity (-AU$21m). Earnings have declined by 46% per year over the past 5 years. Shareholders have been substantially diluted in the past year (66% increase in shares outstanding). Market cap is less than US$10m (AU$12.5m market cap, or US$8.22m). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$12m). Share price has been volatile over the past 3 months (13% average weekly change). New Risk • Feb 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Negative equity (-AU$15m). Earnings have declined by 40% per year over the past 5 years. Shareholders have been substantially diluted in the past year (113% increase in shares outstanding). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$15m). Share price has been volatile over the past 3 months (12% average weekly change). Market cap is less than US$100m (AU$15.7m market cap, or US$10.2m). Buy Or Sell Opportunity • Jan 24
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to AU$0.058. The fair value is estimated to be AU$0.074, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Meanwhile, the company became loss making. Buying Opportunity • Jan 08
Now 28% undervalued after recent price drop Over the last 90 days, the stock is down 39%. The fair value is estimated to be AU$0.074, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.9% over the last 3 years. Meanwhile, the company became loss making. Announcement • Oct 27
Booktopia Announces Resignation of Abigail Cheadle as Director Booktopia announced that Abigail Cheadle resigned as a director of the Company, effective 27 October 2023. New Risk • Aug 29
New major risk - Negative shareholders equity The company has negative equity. Total equity: -AU$15m This is considered a major risk. Being in negative equity means that the company's liabilities exceed its assets, meaning it owes more to creditors than it has in owned assets. While this doesn't mean the company is about to collapse, in the long-term, this is unsustainable. The company may have issues meeting financial obligations, is at risk of becoming insolvent and may have difficulty raising capital, especially more debt, if needed. Currently, the following risks have been identified for the company: Major Risks Negative equity (-AU$15m). Earnings have declined by 40% per year over the past 5 years. Shareholders have been substantially diluted in the past year (113% increase in shares outstanding). Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$15m). Share price has been volatile over the past 3 months (15% average weekly change). Market cap is less than US$100m (AU$32.1m market cap, or US$20.7m). Reported Earnings • Aug 29
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: AU$0.21 loss per share (further deteriorated from AU$0.11 loss in FY 2022). Revenue: AU$200.9m (down 17% from FY 2022). Net loss: AU$29.0m (loss widened 93% from FY 2022). Revenue missed analyst estimates by 26%. Earnings per share (EPS) also missed analyst estimates. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Specialty Retail industry in Australia. Announcement • Aug 28
Booktopia Group Limited, Annual General Meeting, Nov 24, 2023 Booktopia Group Limited, Annual General Meeting, Nov 24, 2023. Announcement • Aug 08
Booktopia Group Limited to Report Fiscal Year 2023 Results on Aug 28, 2023 Booktopia Group Limited announced that they will report fiscal year 2023 results on Aug 28, 2023 Announcement • Jul 29
Booktopia Group Ltd Announces Resignation of Steven Traurig as Director Booktopia Group Ltd. announced that Steven Traurig has toay resigned as a director Of the company. New Risk • Jul 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$5.0m). Currently unprofitable and not forecast to become profitable next year (AU$1.3m net loss next year). Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (AU$23.3m market cap, or US$15.7m). New Risk • Jul 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 10% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Less than 1 year of cash runway based on current free cash flow (-AU$5.0m). Currently unprofitable and not forecast to become profitable next year (AU$1.3m net loss next year). Shareholders have been diluted in the past year (10% increase in shares outstanding). Market cap is less than US$100m (AU$19.6m market cap, or US$13.1m). Announcement • Jun 13
Booktopia Group Limited Announces Executive Changes Booktopia Group Limited announced that Alistair Clarkson has been appointed Company Secretary of the Company effective 13 June 2023 and that Anna Sandham and Steven Traurig have resigned as Company Secretaries effective 13 June 2023. Reported Earnings • Feb 28
First half 2023 earnings released: AU$0.028 loss per share (vs AU$0.005 loss in 1H 2022) First half 2023 results: AU$0.028 loss per share (further deteriorated from AU$0.005 loss in 1H 2022). Revenue: AU$112.7m (down 13% from 1H 2022). Net loss: AU$3.89m (loss widened AU$3.26m from 1H 2022). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Online Retail industry in Australia. Announcement • Dec 12
Booktopia Group Limited Announces Appointment of Non Executive Directors Online book retailer Booktopia Group Limited announced the appointment of Abigail Cheadle and Stephen Ezekiel as Non Executive Directors. The new appointments follow the appointment of Peter George as a Non Executive Director and Chairman of the Board on 1 December 2022. Following the appointments, the Booktopia Board comprises Mr. George, Booktopia Founders Tony Nash and Steve Traurig, Ms Cheadle and Mr. Ezekiel. About Abigail Cheadle: Abigail is a Chartered Accountant, corporate strategist and risk management expert with more than 30 years of experience working across Asia, Europe, the Middle East, and Australia. She has previously worked as a senior executive with leading advisory firms, including EY, Deloitte, and KordaMentha, and in recent years has become a professional company director working across a range of different sectors and industries, including consumer goods, technology and renewables. She has been a Director of six ASX-listed boards to date, including former roles with online clothing platform, SurfStitch and media intelligence and data technology company, Isentia. Her current board appointments include: Chair and Non-Executive Director- Shriro Holdings Limited; Non-Executive Director and Audit and Risk Committee Chair - Novatti Group Ltd; Non-Executive Director and Audit and Risk Committee Chair - LGI Ltd. About Stephen Ezekiel: Stephen is the Chairman and CEO of Hong Kong-based private credit firm Sammasan Capital. He has over 25 years of experience in leadership positions in the financial services, private equity and media/telecom sectors. He serves as an independent board director to luxury crystal manufacturer Baccarat S. A and is a director of private members club 70 North. As an executive, Stephen was part of the GE Capital Asia leadership team, where he was instrumental in establishing GE Capital's structured lending business in Asia. He was previously the CEO of GE Capital Hong Kong and Singapore & Commercial Distribution Finance. He was also the head of GE Equity Asia, GE Capital's private equity arm. Stephen founded and led the GE Capital Asia businesses focusing on leveraged & sponsor finance, corporate lending, corporate aircraft finance and commercial distribution finance (i.e. distributor, dealer and channel financing. Before 2001, Stephen was a lawyer in a variety of private practice and in-house roles in Sydney, Hong Kong and Tokyo, including working for British Telecom from 1997-2001 as lead M&A counsel for Asia. Stephen has a B.Com/LLB degree from the University of New South Wales, Sydney. Board Change • Dec 02
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. 1 independent director (2 non-independent directors). Independent Non-Executive Chairman Chris Beare was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Dec 01
Booktopia Group Limited Announces the Appointment of Peter George as A Non-Executive Director and Chairman of the Board Booktopia Group Limited announced the appointment of Peter George as a non-executive Director and Chairman of the Board. Mr. George will replace Chairman Chris Beare, who has formally resigned after announcing his intention to retire in September. Mr. George is an experienced executive and non-executive Director and public company executive with an extensive background in telecommunications, media and corporate finance. He is currently Executive Chairman of ASX-listed Retail Food Group Limited, a position he has held since 2018. He will retain this position while undertaking duties for Booktopia. As an executive, he led the restructuring and merger of listed print, media and digital services provider PMP Limited as Managing Director from 2012 to 2017 and was Executive Chairman of Nylex Limited from 2004 to 2008. He was also a non-executive Director and Chair of the Audit and Risk Committee of Asciano Limited from 2007 to 2016 and spent four years on the Board of Optus. Following the appointment, the Booktopia Board currently comprises Mr. George, Booktopia co- founder Tony Nash and Executive Director Steve Traurig. The Board is currently finalising the appointment of two further Non-executive Directors and a new Chief Executive Officer. Mr. George said he was looking forward to working with the Board and management of Booktopia as it embarked on a new growth phase. Announcement • Nov 28
Booktopia Group Limited Announces Resignation of Directors Booktopia Group Limited advised that independent Non-executive Directors, Fiona Pak-Poy and Judy Slatyer have resigned as Directors of the Company effective this morning. Non-executive Chair, Chris Beare will stay on as Chairman and resign from the Board once a new Chair is appointed. Price Target Changed • Nov 16
Price target decreased to AU$0.79 Down from AU$1.64, the current price target is an average from 2 analysts. New target price is 276% above last closing price of AU$0.21. Stock is down 91% over the past year. The company is forecast to post a net loss per share of AU$0.021 next year compared to a net loss per share of AU$0.11 last year. Reported Earnings • Oct 02
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: AU$0.11 loss per share (improved from AU$0.14 loss in FY 2021). Revenue: AU$240.9m (up 7.6% from FY 2021). Net loss: AU$15.1m (loss narrowed 17% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Online Retail industry in Australia. Announcement • Oct 01
Tony Nash Enterprises Pty Limited Withdraws Requisition Notice to Booktopia Group On September 30, 2022, Booktopia Group Ltd announced that Tony Nash Enterprises Pty Limited has withdrawn the notices previously given under 203D(2) and 249F of the Corporations Act 2001 to convene an extraordinary general meeting following the announcement on September 20, 2022 of the resignation of the current independent non-executive directors. Announcement • Sep 30
Booktopia Group Limited Announces Executive Changes Booktopia Group Limited announced that Steven Traurig has joined the Audit & Risk Committee and Tony Nash has joined the Remuneration & Nomination Committee. Announcement • Sep 21
Booktopia Group Limited Announces Director Resignations On 18 August 2022 Booktopia Group Ltd. announced the market of the intention of Tony Nash Enterprises Pty Ltd. as trustee for the A L Nash Family Trust, which holds over 5% of the shares in the Company, to call an Extraordinary General Meeting for the purposes of considering changing directors. Su-Ming Wong will resign effective September 20, 2022, Fiona Pak-Poy, Judy Slatyer and Chris Beare will resign at the AGM on 28 November 2022. Chris Beare will step down as Chair as soon as a new Chair is elected. In the interim, the remaining directors will work with Tony, management and the Board to assist in a smooth transition. Recent Insider Transactions • Sep 20
Insider recently bought AU$608k worth of stock On the 19th of September, Nicholas Taylor bought around 3m shares on-market at roughly AU$0.23 per share. This transaction amounted to 27% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth AU$2.5m. Insiders have collectively bought AU$4.1m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 14
Insider recently bought AU$618k worth of stock On the 8th of September, Nicholas Taylor bought around 2m shares on-market at roughly AU$0.25 per share. This transaction amounted to 30% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth AU$2.5m. Insiders have collectively bought AU$3.5m more in shares than they have sold in the last 12 months. Announcement • Sep 02
Booktopia Group Limited, Annual General Meeting, Nov 16, 2022 Booktopia Group Limited, Annual General Meeting, Nov 16, 2022, at 10:01 E. Australia Standard Time. Buying Opportunity • Sep 01
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 22%. The fair value is estimated to be AU$0.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Aug 30
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: AU$0.11 loss per share (up from AU$0.14 loss in FY 2021). Revenue: AU$240.9m (up 7.6% from FY 2021). Net loss: AU$15.1m (loss narrowed 17% from FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 512%. Over the next year, revenue is forecast to grow 15%, compared to a 13% growth forecast for the Online Retail industry in Australia. Recent Insider Transactions • Aug 19
Insider recently bought AU$2.5m worth of stock On the 17th of August, Nicholas Taylor bought around 8m shares on-market at roughly AU$0.31 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$2.9m more in shares than they have sold in the last 12 months. Announcement • Aug 10
Booktopia Group Limited to Report Fiscal Year 2022 Results on Aug 29, 2022 Booktopia Group Limited announced that they will report fiscal year 2022 results on Aug 29, 2022 Announcement • Jul 14
The Board of Booktopia Group Announces CEO Changes The Board of Booktopia Group has given Tony Nash notice to step down as CEO effective from close of business 13 July 2022. Geoff Stalley, the current CFO, has been appointed as the interim CEO until a new CEO is selected via the search process currently underway. Remuneration arrangements and a summary of the key terms of Geoff's employment as interim Chief Executive Officer are attached. Commencement 14 July 2022. Appointment is ongoing, subject to termination by either party on one months' notice (including when a permanent CEO has been appointed). It is intended that Geoff Stalley will return to his role of Chief Financial Officer once the term of the Interim CEO role finishes. Announcement • Jun 15
Booktopia Group Announces Resignation of Wayne Baskin as Executive Director Booktopia Group Limited announced that Executive Director Wayne Baskin has resigned from the Board effective immediately but will continue as a consultant and advisor to the company. Chairman Chris Beare thanked Mr. Baskin for his many valuable contributions to the company as an employee, senior executive, and Director. Mr. Baskin has resigned to focus more time and energy on other interests including as a founder, executive and director of share trading business Superhero. Recent Insider Transactions • May 12
Co-Founder recently bought AU$375k worth of stock On the 5th of May, Antony Nash bought around 810k shares on-market at roughly AU$0.46 per share. This was the largest purchase by an insider in the last 3 months. Despite this recent buy, Antony has been a net seller over the last 12 months, reducing personal holdings by AU$3.8m. Major Estimate Revision • May 04
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from AU$254.6m to AU$242.2m. 2022 losses expected to reduce from -AU$0.01 to AU$0 per share. Online Retail industry in Australia expected to see average net income growth of 13% next year. Consensus price target down from AU$1.64 to AU$1.19. Share price fell 34% to AU$0.46 over the past week. Price Target Changed • Apr 27
Price target decreased to AU$1.64 Down from AU$2.28, the current price target is an average from 2 analysts. New target price is 136% above last closing price of AU$0.69. Stock is down 70% over the past year. The company is forecast to post a net loss per share of AU$0.0055 next year compared to a net loss per share of AU$0.14 last year. Announcement • Apr 19
Booktopia Group Limited Appoints Judy Slatyer as Independent Non-Executive Director Booktopia Group Limited announced that it has advised that Ms Judy Slatyer has been appointed as an Independent Non-Executive Director effective from Thursday 14 April 2022. Announcement • Mar 31
Booktopia Group Limited Announces Board Changes Booktopia Group Limited announced that independent, non-executive Director Marina Go has resigned from the company's Board effective March 31, 2022. Ms Go recently joined the Board of Transurban Group and commenced as the Chair of Adore Beauty Limited in November 2021 and has decided to resign from her role with Booktopia to focus on these commitments. The Board also confirmed the upcoming appointment of Ms Judy Slatyer as an independent non-executive Director, subject to formal background checks and documentation. Ms Slatyer has most recently been CEO of Australian Red Cross and prior to that was COO of the World Wild Fund for Nature in Geneva and prior to that CEO of Lonely Planet Publications. She brings to the Board experience in leading large organisations. Ms Slatyer's appointment date will be confirmed in due course and she will stand for election at the 2022 Annual General Meeting. Reported Earnings • Feb 28
First half 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First half 2022 results: AU$0.005 loss per share (up from AU$0.17 loss in 1H 2021). Revenue: AU$130.0m (up 16% from 1H 2021). Net loss: AU$633.0k (loss narrowed 97% from 1H 2021). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 14%, compared to a 55% growth forecast for the industry in Australia. Announcement • Feb 07
Booktopia Group Limited to Report First Half, 2022 Results on Feb 25, 2022 Booktopia Group Limited announced that they will report first half, 2022 results on Feb 25, 2022 Price Target Changed • Dec 24
Price target decreased to AU$2.28 Down from AU$3.46, the current price target is an average from 2 analysts. New target price is 69% above last closing price of AU$1.35. Stock is down 50% over the past year. The company is forecast to post earnings per share of AU$0.016 next year compared to a net loss per share of AU$0.14 last year. Price Target Changed • Dec 16
Price target increased to AU$3.79 Up from AU$3.46, the current price target is an average from 2 analysts. New target price is 124% above last closing price of AU$1.69. Stock is down 38% over the past year. The company is forecast to post earnings per share of AU$0.067 next year compared to a net loss per share of AU$0.14 last year. Announcement • Dec 16
Booktopia Group Limited (ASX:BKG) acquired 25% stake in Welbeck Australia from Welbeck Publishing Group Ltd. Booktopia Group Limited (ASX:BKG) entered into a non-binding agreement to acquire 25% stake in Welbeck Australia from Welbeck Publishing Group Ltd for AUD 3 million on July 22, 2021. WPG Founder and Director Mark Smith will relocate to Australia in early 2022 to assist with the establishment of the business and the recruitment of key publishing and operations staff. Fellow WPG Executive Director Marcus Leaver will also base himself in Sydney for parts of each year. The management team of the new Sydney business will be announced shortly. The transaction is expected to close on September 30, 2021.
Booktopia Group Limited (ASX:BKG) acquired 25% stake in Welbeck Australia from Welbeck Publishing Group Ltd on December 15, 2021. Welbeck founder Mark Smith has relocated to Australia to oversee the setup and operations of WPGANZ, with experienced book industry executive Bernadette Aqius appointed Managing Director of the new business. Reported Earnings • Aug 31
Full year 2021 earnings released: AU$0.14 loss per share (vs AU$0.002 profit in FY 2020) The company reported a mediocre full year result with weaker earnings and weaker control over costs, although revenues improved. Full year 2021 results: Revenue: AU$223.9m (up 35% from FY 2020). Net loss: AU$18.1m (down AU$18.3m from profit in FY 2020). Recent Insider Transactions • May 19
CEO, MD & Director recently sold AU$4.2m worth of stock On the 14th of May, Antony Nash sold around 2m shares on-market at roughly AU$2.68 per share. This was the largest sale by an insider in the last 3 months. This was Antony's only on-market trade for the last 12 months. Is New 90 Day High Low • Mar 04
New 90-day low: AU$2.48 The company is down 15% from its price of AU$2.92 on 04 December 2020. The Australian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Online Retail industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$2.32 per share. Announcement • Jan 27
Booktopia Group Limited to Report First Half, 2021 Results on Feb 22, 2021 Booktopia Group Limited announced that they will report first half, 2021 results on Feb 22, 2021