Boohoo reported a net debt of ?10m for the 5 months ending 31st Aug. However, it still holds ?315m in gross cash maintaining its balance sheet.

Financials

Looking at Boohoo’s interim results for the six months ending 31^st of August 2022, its revenue and gross profit both saw a decline. Revenue fell by £93m and gross fell £70m. After the EBITDA was adjusted, an 85% decline was reported in the prior year with an EPS (earnings per share) of £0.30. This actually left the company in net debt of £10.4m for the specified period. However, with £315 million in gross cash and a low level of net debt (£10 million) at the end of the first half, the Group continues to maintain a strong balance sheet, providing sufficient liquidity headroom that allows selected investments in strategic growth projects.

Technicals

Its share price currently sits around 42.52p a share. Looking at the chart on the daily timeframe, we can see resistance was almost tested on the 11^th of November but was rejected. Then resistance was tested on the 18^th of January at the price of 48.43p but was rejected once more, and now heading lower once again. Current resistance levels sit at 44.67p then at 45.91p then a key level at 46.40p (corresponds with the trendline). A clear break above 46.40p could form a bullish trend, creating a spark that this stock has been seeking for months and months. However, until that might happen, support sits at 42.01p then at 39.01p then at 35.67p. A break below 35.67p could see the key support levels tested at 32.60p (orange oval) and then at 30.28p (red oval). MACD is practically neutral and seems like it could turn negative over the next couple of trading days. RSI is neutral but also faltering as it reads 50.