Paul’s weekly SCVR summary - episode 23 (week-ended 2 Dec 2022)

Audio is here, and on podcasts.

Apologies for being late this week (Monday, instead of weekend) - it felt like a chore, and I needed a rest over the weekend.

Monday 28 Nov

Superdry (LON:SDRY) - aired my worries here over bank refinancing. S.Times article suggested existing lenders don’t want to renew, so they are looking at alternative lenders. Potentially an existential crisis, as SDRY relies on these facilities for peak seasonal stock financing. Close to striking a deal apparently. Really worrying - fallout from collapse of Joules, lenders might not want sector exposure. Same conversations probably at trade credit insurers, who often have more exposure than the main banks. I’m worried. Could turn out to be fine, might seal a deal, but cutting it fine, for end Jan 2023 expiry of bank facilities. In normal circumstances, SDRY would have no trouble renewing, but banks worried about macro picture. SDRY looks too risky at the moment. Also revelations in SDRY’s Annual Reports over several years, over serious accounting failures, sloppy controls. This could be why the banks don’t want to renew facilities. So elevated risk, and every now and then you get hit with a nasty loss. If SDRY...