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Others have said it all really. Very disappointing RNS in terms of both the message and the level of detail.
With a market cap of just £4m, they are certainly vulnerable to a takeover by ML. But at what price? Obviously we can forget £1 per share, but if ML can see the potential, JW may be able to extract, say, 20p per share from them, i.e. £10m.
It will be interesting to see what Allenby have to say, particularly in relation to "fair value", which they've previously estimated at around 40p per share.
Allenby suggested cash would be around this much (based on a re-calculation because they purchased a couple of inhouse data centres). There are many questions outstanding around how their income has been affected by the insurance devices. I suspect they will draw on their over-draft relying upon the contract signing (and hoping to clear the insurance storm).
Well, the price is moving back up. I was tempted, but the remaining opaqueness around the cash situation, given the massive loss led me to pass in the end.
Good luck to everyone here.
I think that's always been one of the problems here, the company's reliance on single contracts. Just makes things too precarious, too reliant on jam tomorrow.
Would be interesting to know what thoughts Micro have on this - perhaps, as you say, this the moment, but at what price.
Any thoughts on the cash situation?
Reckon this may be the time Microlise take the company....
How did they get this so wrong - 6 months ago, it was not that bad and even assuming the delay in contract you would have not foreseen this. I'm not understanding the maths here. Forecast of £21m now down to £16.4 on the basis of a couple of bad insurance months (Feb/March) and the failure to sign a contract. The contract can't be worth that much i.e. it should be a value added to the revenue not underpinning it.
Will they ride to the rescue once again?
Yes, just saw the RNS flag flying over here ...on a Friday - not typically a good sign.
*The Group's cash position at 31 March 2024 is anticipated to be approximately £0.4m.*
Free cash after or before the loss? What are their monthly overheads?
This should have been a much more detailed statement outlining exactly how they now intend to survive...
Not good....
https://www.lse.co.uk/rns/TRAK/trading-update-0oolo79vcq2sm2y.html
Nothing is certain in this game, but I think it's highly likely that investors' inestimable patience will be rewarded with a contract RNS.
If we have misjudged the situation, then so have respected industry leaders and insiders Microlise, who expect to increase their stake later this year to just under 30%, so we're in good company at least!
Anyway, not long to wait now...
As NoSugar reminds us, we are nearing the end of the FY - 7 business days in fact. So the RNS options I see are:
1) Contract signed, but no need to announce as nothing material has changed.
2) Contract to be signed, RNS to state in the next few days.
3) Contract not going to be signed this side of the FY, RNS to profit warn. I suspect this would be known already, so an announcement would have already been made.
In the past they have announced contract renewals which they had previously highlighted as essential. I guess the main thing is we will find out soon enough.
I think my greviance is in the fact that they don't seem to RNS the good stuff (like the Direct Line renewal) whilst simultaneously trying to court investor's attentions with their capital market days (although, none this year)
Good point - wasn't just Sainsbury's, however - Tesco as well.
Apparently it was more to do with the wi-fi (so my delivery driver said)
Is this on us? Hope not....but this update could be related to the contract signing stuff. To be fair, this appears more far reaching than just route optimisation and extends to problems in-store (I noticed this afternoon that the store was off-line) and Argos.
"Sainsbury’s said it was unable to fulfil the “vast majority” of its online orders because of a technical glitch. The supermarket chain said an overnight software update had led to the problems affecting some stores, grocery online services and its ability to contact customers."
https://www.theguardian.com/business/2024/mar/16/sainsburys-grocery-deliveries-hit-by-technical-issue
OK
Well direct will have had to explain their strategy hopefully that means using data to improve their performance via telemetry
Early Easter this year and then couple of major industry shows in mid late April
Trakm8 showcasing their new products hopefully exciting times for them and us
Direct Line takeover now seems dead in the water...whatever that means, if anything, for Trak.
Dc
Thanks for sharing
Certainly not bad news
Direct line been in a pickle for a while
I think they might be fighting off a bid???
Plus hopefully looking to regrow their telematics offering as others are leaving them behind
I was thinking in the context of its bombed-out share price, and the prolonged radio silence. Every little helps, whether it's Tesco or Trak...
You'd think so wouldn't you?
Perhaps the contract is no long material enough in value to warrant an RNS?
And I don't say that to be negative.
Worth an RNS, surely.
Some good news, and ties to the DLG thread earlier
"Thanks to Insurance Business UK for covering the news that our contract with Direct Line Group has been extended for a further 2 years. "
https://www.insurancebusinessmag.com/uk/news/auto-motor/direct-line-group-trakm8-extend-partnership-480694.aspx
Yes on reflection think you are right
April seems more likely based on history
I emailed JW one year and it is not a given that they will announce anything prior to April.
On the one hand, if the contract gets signed you would hope they announce it - on the other, if this does not change anything materially then, perhaps, they do not need to tell us.
I'd also add that all the loans have to be repaid/renegotiated before Sept - so they should announce something in that respect (although not necessarily now) - this is why I think the CLN will be converted - too many pay up days coming at once.
Must be getting close now
This week or next .....
Mmmm
Interesting observation - and we still have a single digit 'code' trade