HP-2020-000016 - [2025] EWHC 1451 (Ch)

Table 7: MGA calculations of losses (£)

Mr Parker’s models assumed an average wholesale price for the globe of £1.33 in 2017 and £1.37 in 2018 onwards, based on a weighted average of the prices paid by the retailers that did stock Worldeez. The figures set out in the table above are based on that price assumption.

In its closing submissions, however, MGA contended for the first time (contrary to Mr Parker’s position) that the correct average wholesale price to assume in the quantum analysis was in fact not Mr Parker’s figures of £1.33 and £1.37, but was the price paid by The Entertainer of £1.20. Further profitability calculations were therefore provided by MGA using that price base, and the final version of the DTM included this as an option. Those price assumptions inevitably led to far lower profitability figures (or even greater loss figures) than the figures based on MGA’s cost stack set out in the table above.

As Cabo pointed out, this was a new argument which it had not been able to explore with Mr Parker and other witnesses. Nor was it supported by the evidence in any event (particularly given that Cabo’s main retail outlet B&M had in fact agreed a higher wholesale price of £1.50). As set out at §554 above, a reasonable average wholesale price to assume for the counterfactual scenario would be around £1.35. Mr Parker’s weighted average figures are very close to that, and it is not necessary to comment further on MGA’s alternative profit figures using a wholesale price of £1.20.