Is this the next ASOS?

This could be an opportunity to get in early as the company builds on it's web presence and sales. Very few people are aware of this one and it is only now that they are starting to get noticed in the national press after achieving record sales in the run up to Christmas.
The company sells music related fashion to customers who want to get "the look" of their favourite bands.
With internet retailing growing at the rate it is and the massive market for this type of product, in time this could be a real winner.

www.ebtm.com



RNS Number:3459C

EBTM PLC

03 May 2006


EBTM PLC

3 May 2006


EBTM Plc
TRADING UPDATE - APRIL SALES 60% HIGHER THAN DECEMBER 2005

The Board of EBTM Plc, the AIM quoted online retail operation, announces that trading in the period to end April 2006, its year end, was above expectation.

The Company has integrated rapidly into the former e-retail business and its management is currently expanding its warehouse and distribution facilities and systems.

It also reports that sales in April were some 60% ahead of those of the previous record month of December 2005, encouraging the Board to be confident of achieving its current expansion plans.

Chairman Mark Watson-Mitchell commented

"The sales figures for April were excellent, way ahead of our previous record month, which was that leading up to Christmas 2005. Since March the Company's management, under Richard Breeden and Grant Calton, has moved apace in getting to grips with creating its ability to cope with the significant sales increases that are a major part of the expansion strategy."

For further information:


EBTM PLC 020 8704 0034


Richard Breeden (Chief Executive) 07973 563 529


Notes to Editors

EBTM Plc (AIM: EBTM) is the result of the reverse acquisition of e-retail plc in February 2006. That company acquired EBTM Limited, which was formed in April 2005 as a new online specialist retailer of music merchandise and related clothing and fashion.

The online retail operation, EBTM.com, was launched in July 2005. It currently sells licensed products from over 175 bands (from The Rolling Stones to Razorlight, from Bob Marley to Motorhead). Products include clothing, jewellery, bags and shoes. EBTM also sells several a range of associated fashion brands, (which have an association with music), including Atticus, Vans, Eastpak and Amplified.

EBTM continues to broaden and expand its sales retail offering and, over the coming months, will continue to develop its branded fashion offering.


This information is provided by RNS
The company news service from the London Stock Exchange



END


A bit more info found by foo ninja on the iii discussion board.



The man who's got the T-shirt

By Emma Vickers

3 March 2006

Retail Week

English

Copyright 2006. EMAP plc. All rights reserved.

Newly floated e-tailer EBTM is convinced band T-shirts and posters can be big business. Emma Vickers meets founder Richard Breeden

In his City-boy uniform, EBTM chief executive Richard Breeden looks more anything, rather than everything, but the music - the name of his recently floated internet fashion business.

His sharp suit, expensive watch and blue and white striped shirt are a far cry from the Led Zeppelin and Iron Maiden T-shirts that comprise the site's bread and butter. But, following the 1.5 million reverse takeover of EBTM by AIM-listed consultancy E-retail on February 3, the ex-dance music fanatic must play to an audience of investors to persuade them that music-inspired clothing has room for growth and, more importantly, that he is the one to lead it.

Breeden outlines the premise of EBTM a week after the deal. He looks tired and speaks quickly, giving the impression that he delivered the same spiel repeatedly in the weeks before and after the takeover.

He says: "We are an online-only retailer of music-related merchandise and product. The retail concept is that music is a key driver of lifestyle. The music that you listen to defines not only the clothes that you wear, but who you hang out with and where you hang out - a large part of what you do. We're trying to provide an access to that lifestyle to people that like certain types of music."

The web site sells T-shirts, accessories, jewellery, footwear and posters. It caters for fans of genres from metal, indie, rock, punk to urban. It has 40,000 registered users - 60 per cent of whom are men.

A heavy metal fan browsing the site would be able to pick up a T-shirt with the logo of Bullet for My Valentine and a co-ordinating monogrammed bullet-shaped pendant.

The appeal of the offer is arguably limited to moody teenagers listening to grungy music in their bedrooms. However, Breeden cites the broader and more affluent 16- to 29-year-old age range as his core customer base and EBTM's average basket size of 26 backs this up.

Breeden says one of the challenges he faces is widening the appeal of the site and he has plenty of ideas to do this. He intends to include more fashion to allow fans to get the look of their favourite singers. Although this is a sales device used heavily by online fashion retailer Asos, EBTM customers are more likely to want to ape the style of Babyshambles singer Pete Doherty than his ex-girlfriend Kate Moss.

The site will also stock the growing number of clothing collections designed by musicians themselves. In March, it will start selling the Adeline clothing collection designed by Green Day frontman Billie Joe Armstrong. Breeden points out that licensed product is becoming more important to artists because the revenue they once got from CDs has been hit by internet piracy. He says: "It's leading to better product development."

His goal for EBTM is to have a fashion-led homepage, with links to a broadened range of music genres, including pop. However, music fans are renowned for snobbery - would a Motorhead fan buy a T-shirt from a site that also, for instance, stocks a cosmetics range by J-Lo?

Breeden says: "It's something we're very aware of. It's not just J-Lo, it's the difference between metal and indie. But that's one of the beauties of the internet: because it's so flexible, you're able to create environments for each genre. It's not a concept you can deliver in a shop, because once you're in a shop that's the environment you're in."

Though he has limited retail experience, Breeden has more than proved his entrepreneurial credentials. At university, he channelled his passion for dance music into organising gigs and club nights. On graduating, he lived every music lovers' dream - after stints of work experience he was offered a job with EMI.

Within six weeks, he was running his own label. He says: "I spotted an opportunity - they had a (dance music) label called Tribal America and I persuaded the owner to let me set up the UK side. We became very successful. It's fortunate, but there was an opportunity and we built a fairly significant business pretty quickly."

After eight years at record labels and an MBA en route, he ended up working for merchandiser Blue Grape. He explains: "Merchandisers sign bands in the same way that a record company does. They'll go out and pay in advance to acquire rights, but instead of acquiring record rights they acquire what are effectively visual rights. The right to use the logo and all that kind of stuff."

It was while working here that the idea for EBTM was born. Breeden says: "I spent a long time looking for the right opportunity - when I say looking for, I mean sitting down and thinking it up."

He set up the business in January last year and was dealt the attention of EBTM's retail trump card in the form of executive director Quentin Griffiths, who founded and remains a stakeholder in Asos.

As well as expanding the breadth of product offer, EBTM is driving hits through print advertising in specialist titles such as NME and Kerrang. Recent coverage in Heat magazine helped drive sales of a studded Rolling Stones T-shirt and bring EBTM to the attention of a more mainstream customer base. Then, unlike Stones frontman Mick Jagger, Breeden will be satisfied.

Eric - "the logic of the acquisition of e-retailing last March"

This was a reverse takeover of e-retailing by EBTM so EBTM could take advantage of e-retailing's listing wasn't it? BTW note the broker!

e-retail plc
03 February 2006





FOR RELEASE 7.00AM 3 FEBRUARY 2006

E-retail plc

("E-retail")


Acquisition of EBTM Limited ("EBTM") in reverse takeover

Approval of Waiver of Rule 9 of the City Code on Takeovers and Mergers

Admission to trading on AIM

Nominated Adviser
Nabarro Wells & Co. Limited
Broker
Seymour Pierce Ellis Limited

It's very nice to see some interest in this one at last. I must point out though I am very much a novice when it comes to investing in shares.

I'm not a numbers man but invest in companies that I feel I can understand what they are doing and feel they have a good chance of succeeding.

Typically I had a link for eretail which I have since deleted from my fav's but if my memory serves me right, I think eretail started out to act as consultants to retail web sites and charge fees etc.

I believe they got involved with EBTM and felt it was such as winner that they decided to change track and buy it via a reverse takeover?

Hopefully I have given you the correct information, but go easy on me guys as I dont understand a lot of what's posted here as I'm still learning.

Just to make me look a bigger numpty, I doubt I would have the skills to do a proper header and charts and things, but hopefully if the company does well and there is more interest someone could start a new thread.

Hope this has been helpful.

Good luck.

sd My question was prompted by the acquisition price of 1.5m based on issue of shares. The trading losses in the last FY were also assigned to e-retailing. The listing may have been worth an odd 100K but what did they acquire for their money?

I expect that staff have increased from 8 (including directors), e.g. head buyer from ASOS, but staff bill was only some 210K (again including directors emoluments). Lets say this has doubled so overheads may be 600K. We could be looking at net sales of 1.25m: is this gross profit? If so, we could already be trading profitably and this could be incentive for realignment of share price. Certainly, the gross margin (gross profit/ turnover) is excellent at 60%.

Trigger. Not to worry - I now realise that your first post will remain at top of current page. You can edit it by clicking on the pencil icon. It could be helpful to add a short initial para asking the question: 'Is this the next ASOS? Certainly, there is a cross-directorship, the business model is that of ASOS, there is a clear market sector, which while not the size of their sector gives a clear opening to the European market. Worth backing the management. Ready for take-off?'

Eric

Eric - in the reverse takeover e-retailing plc acquired EBTM Ltd, then changed its name to EBTM plc. So e-retailing acquired the invesntion and goodwill of EBTM.

The "reverse" of the transaction refers to the acquisition being bigger than the the acquirer.

Given that no cash changed hands and the board of e-retailing largely remain in place, it was more of a merger of interests between the individuals, accounted for as an acquisition, than a real acquisition. The new members of the team were granted 38.56% of the enlarged group - valiue to be realised by their own efforts.

Hvae not divined yet whether tjhe parent intends to acquire more operating businesses. My guess is that e-retail has moved away from consulting to being solely involved with EBTM - since the latter's CEO is now the CEO of the group. Always possible they could continue with their consultancy work on other e-tailers on a non-conflict basis - we'll have to see what the accounts say on this subject.

You seem to be lacking some RNS. digitallook.com gives a complete list from first float of e-retailing plc. Worth a read through. Also check your email.

Wonder who sold 150,000 at only 4.8p this morning. I see NMS is only 3,000. So someone must have wanted out - did they know something? Apart from waiting for the results in the neext couple of days, I am also minded to wait for the chart to break above its old peak of 7p back in Feb last year. Trying to be older and wiser (and learn new tricks at the same time!) as part of the new-groomed dog for 2007. If it makes it it will be a strong signal to buy and I may have lost 25% of the first rise, but it will be surer. If it does not break out, it may well drift lower and I can pick up cheaper later.

sd

Thanks, sd. I'll have a look at the older documents. I understood the reverse acquisition aspect but your post clarifies the basis of the deal. It appears that the transaction may have been primarily to bring the expertise on board, particularly as it appears that they have refocussed on EBTM. So the EBTM board must have reckoned it was worth giving up 38.56% of the equity to acquire the skills, presumably the technical skills required. The website and AIM flotation followed, sales then took a significant step ahead so the transaction looks justified.

Understand the CDS (cautious dog syndrome). The trouble with these smaller stocks (as we know from DGT) is the tendency to drift when away from the news. The next trading statement will presumably come in April. I suspect also that they will be actioning the European plans straight away - we may learn more on Wednesday. You get the feeling that management are in a hurry thus establishing market leadership before others respond. The success of ASOS implies that it is only a matter of time before the market starts to chart comparisons and thus look for a break-out: this week? prelims? European launch? finals?

Eric

Eric, happy new year to you. How are you my old bean??!!

Have held these for a few months. I tend to post on advfn, as this stock seems to be covered more over there. It would be good to see more posters on this stock on this board. There is a guy posting as greengiant that posts some very useful info re: est sales figures. he buys one item each week and looks at the invoice numbers, then multiplies the nos by the average sale price and then minus the returns. So far, he has not been a million miles from the actuals!! Well worth a look imho.

Currently long by 355k shares at the mo at an avg price of 4.78p.

Although the results will be key, the comments that go with the results will be crucial also IMHO.

Funnily enough have sold the last of my Broker Network (BNH) recently (2.40 last tranche). Did you buy any??!!

What else you looking at eric??

Have still got TND (still at a loss, but am hopeful ;-))

Regards, Legend.

legend Good to hear from you. Your enthusiasm for BNH was certainly justified. I am interested that you have come out whilst press comment is still very positive. I was in for a short time but the timescales looked too long.

Back in ASOS and enjoying a nice upward trip ahead of the interims next Monday. Having a serious look at MSR which I relate to from my own business background.

Good luck. Eric

http://www.brainspark.comI bought some at 4.95p....looked on alexa.com and the company is ranked at about 75000...not bad but needs to come down abit...if you consider easyart.com is ranked about 35000 which is owned partly by Brainspark with a paltry market cap of about 1m you can see why BSP is probably the most undervalued share on the stockmarket...it partly owns about another 6 top quality internet companies but don't tell everyone....shareprice 0.7p to buy

eric - I think you mean MSR, unless you are suddenly into gold-mining!

Today's results are as expected. Not at all bad and forwad looking statements relatively strong.

Back of envelope sums for H2 suggest 900-1,000,000 turnover at 45% margin less 550k opex and 42k dep/amort, plus 7.5k net interest for an H2 pre/post tax loss of 135-180,000 - a full year loss of 428-473,000.

For 2007/08, I would guess at least 50% increase in turnover to 2.13m. To break even I reckon we need 86% increase to 2.65m at 45% margin less 1.1m opex less 90k dep/amort. By no means impossible, but all very much subject to extent and speed of European roll-out. Income may increase faster, but costs may be considerably greater due to expansion costs and new warehouse/fulfillment costs mentioned in accounts.

So far seems to be tracking ASOS's early stages, but a long way to go. Market neutral to interims so far today, buys nearly double sells, but minor volume. Glad I had the patience to wait. Am keen to see a move towards break out above the 7p Feb peak to confirm we are moving into higher territory, even if I miss part of the next 33% rise. If it's gonna be an ASOS, there's plenty more to come in due course.

Any other views, please?

sd

sd Have corrected previous post: Mrs obviously on mind.

Not sure how you get 550k expenses given the comment that fixed overheads are currently under 50K per month. Marketing activity is significantly increased and warehouse and fulfilment capabilities are also increased with further increase in first half of 2007. Your figure of 50% increase in turnover is probably low and the 86% may be achievable from a relatively low base given jump in Christmas sales.

The fundraising has been ear-marked for European development, implying that cash of 368K at 31st october is adequate for operational purposes. I think this points to an expectation of positive cash flow in the second half (excluding European initiatives). I suspect this is quite important for the sp as it would point to positive pbt in year commencing May.

I would be surprised if John Marshall doesn't comment in next week's Shares, admitting a personal investment. Just his sort of share.

Eric

Well how come they spent 502k on operating expenses in H2 if overheads are "fixed" at 50k per month? There will be continuing marketing and warehouse/fulfilment costs which I assume are treated as operating expenses in addition to overheads. I can't see them reducing if they are expanding logistics next year and getting into Europe.

The key parameter for me is when we expect them to reach profitability at an operating level. The 500k cash for Europe will probably mostly be written off to P/L rather than capitalised, so it's a pretty open question. To show a profit at April 2008 would be terrific, but we need more evidence to be sure. Until then I assume it will be H1 2009 before we see a profit reported. If so that makes them one to watch but not so much hurry for me to buy. I look forward to the full accounts to see if we can glean any more detail on future plans.

Do you know which broker/analyst covers these?

hoodies...

Agree Maestro. Bought through them although they operate, of course, a 'chinese-wall' policy.

Looking at your figures again, sd, I accept the 500K opex (operating expenses). The 50K was administrative expense so that marketing/logistics (development thereof) would account for the other 200K+. Reasonable, from their comment to see this continuing. I think the figure that I believe will prove to be understated is your projection of 50% growth. Given Christmas trade was 275% up on last year, and given that the comparison base is still small, 100% would appear not too high an expectation for UK market alone. Presumably they will be able to capitalise some of the European infrastructure development (they should do). The internet service should be operated from a single centre, perhaps with local nodes, but they will need some presence in the key markets. Lead time shouldn't be great and they should make an impact next year.

I would see EBTM staying in the market eye in terms of their market development, together with trading (Q3?), new products, sale of spare stock from Christmas. After all, a lot their more affluent clients will be City music lovers!

Eric

JUST HAVE A LOOK AT http://EASYART.COM

OK; looks nice. But no such trading company!

EWR...Brainspark owns 25%

OK Will have a deco.

Eric, cynic, et al.
Have been following this thread closely, and its comparison to ASOS, do you not think that EBTM operates in a much more niche market than ASOS and will not emulate the growth as ASOS appeals and targets a much wider audience ??? SD

Seadog - I posted the very same thought on another thread a week or so ago. ASOS seems able to cross market and price per item boundaries with relative ease. EBTM will not be able to do that IMHO. However, it seems that EBTM will be expanding its geographical market from an earlier stage than ASOS. I think that may demonstrate that it needs Europe to become profitable, whereas ASOS have become profitable in UK alone first.

What's the general impression of on-line retail appetite from consumers in Europe (ex UK) - anyone know?

Am watching and waiting still.