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evening all........... not directed at anyone but worth remembering that HM will be seriously out of pocket due to the start up costs of a new venture/product.......these costs are a one off (moulds,research,marketing....etc).......once the costs of the start up are recouped from the sales of the panels, then, by the looks of things we'll be off to a flyer....... GLA genuine holders.
Oh I get it alright.....make no mistake. Your loyalty to this company is to be admired....but always remember, don't fall in love with a share..especially high risk ones,..the market can be very cruel, .always remember that and you ll be just fine. Good luck with all....:-)
TFL - you just don't get it do you. Which bit of "Gap between production and payment" do you not understand? what happens when they get paid according to the payment terms which are likely to be 30 day plus? You may want to call a friend for help to figure it out? Here's another hint they are not producing the wall panel and giving away for free.
Read the rns s in detail Sid,...going cap in hand for 250,000 to Leed..how long will that last not long I suspect ..previous funding sources now dried up,... why did they dry up I ask, and has that previous funding been paid back,...there is not much clarity about that in the rns s . ....plus the fraudulent activity has just exacerbated the problem, ....add up those equations and maybe it will come clear to you.....hopefully Leed have something up their sleeve before they make any decision ....we will all know in due course. Have a good day and good luck
Please explain how you get to "it would appear that they are not in the best financial situation"? what are your reasons? Re-read previous RNS's the fraud only impact last couple of months - it has not been a ongoing issue for several years etc. This just give flexibility to get better deal by identify the issue.
Please read my post more carefully, where did I say the company was doomed ??....I am merely suggesting that it would appear that they are not in the best financial situation....and the fraudulent activity of the guy with his hands in the till has certainly not helped....I wonder to myself if Leed were eyeing up HM now as an investment rather than before .....would they see it as a sound investment ....maybe not....hindsight is a wonderful thing
TFL - please can you tell me where in the last 2 paragraphs states that LDP is doomed as you state? Please see paragraphs below: "HM has previously relied on alternative sources of working capital finance to fund the gap between production and payment for the blocks and panels. These sources of financing have now expired and accordingly, Leed has agreed to contribute A$250,000 to a short term working capital facility along with two other Battalion loan noteholders, which will accrue interest at a rate of 12% per annum. The loan will be secured against trade receivables and stock held at the quarrying and processing site of HM." "We will continue to update shareholders on a timely basis and your Board would like to thank you for your continued patience and support." Why would Leed not provide funding to a company they are taking over? would you be more satisfied if LDP had funds in the bank and we paid an external party interest for funding?
If you can`t accept some people have a different view to yourself then maybe these chat boards are not for you ?? I don't want to see the company fail., why would anyone wish that...I am just pointing out the facts as they are, simple as that
Read the last two paragraphs of the rns, nothing there to suggest to me HM are in a particularly healthy position, although it doesn't state anything there we didn't know.....
Please explain how the company is struggling? is a business expanding called struggling? Please re-read the RNS, the cashflow situation is due timing of payment from customers - we've only just recently stated delivering the products and cash is tied up in stock and awaiting payment. In the real world you supply the goods and then get paid on agreed payment terms.
There is nothing in that rns that we didn't already know anyway.......just an affirmation of the last one that HM are struggling and the fraudulent activities haven't helped the situation.....it may mean they would get a lower price if they did decide to take over but then they would be taking over a company which seemingly is in difficulties, not very pretty at all ....makes me wonder if Leed with hindsight are regretting making the investment in HM, time will tell. Good luck all
coming here. Should be good out the other side. Get in there LEED
Definitely should be able to purchase at a lower price due to the fraud which devalues HM, which is good for us as the due diligence checks have discovered the fraud before we RTO.
Looks as if they are hoping to get in at a lower price. Worrying about losses due to fraud but should be covered by insurance.
looking ready for RTO here.
In my view I wouldn't expect too much from the half yearly accounts to be honest mate....they re obviously struggling to make ends meet ..so the half year accounts aren't likely to be anything to get excited about.
On a positive the rns stated the fraud had "significantly affected the profitability", this should now be resolved as the idividual has been fired and processes put in place. Hence going forward the improvements should "significantly affect the profitability".
The rns stated "significantly affected the profitability" - hence not neccessary hand in the till job. As it was the person in charge of block making. He likely to have relationship with suppliers and involved in materials used - therefore could be getting back hander from suppliers or stealing raw materials to sell on which would impact profit directly. If it was direct theft it would be writeoff to the P&L in the annual accounts. In terms of cashflow - don't forget the business is expanding eg: you purchase the raw materials, labour, deliver the goods etc. Once delivered the customers have more than likely 30 day plus payment terms. We only started delivering the wall panels late Jan and were stocking up beforehand (which would have cash tied up). Expect another RNS in next few days as half yearly accounts are due by end of March. Hopefully will have more info.
much.......who pays cash for materials that cost/size? 99% of transactions would be companies with accounts or council/ developers. The cash and "cash missing" would be minimal.
was a new panel laying team advertised for recently if so would there be more specially adapted kit needed not helping cash flow..any thoughts
The cash flow situation is worrying. Three has probably been more expenditure required in altering the mounds to the correct specifications also there seems to be a lot of very expensive looking vehicles and other plant in the website photos. As the business expands these initial large costs should reduce. Have a good break yourself I'm taking it easy for ten days now. Try not to eat too much chocolate I probably will. Let's hope for good news soon on rto.
The guy with his hands in the till is not such a big deal as no doubt they will pursue some kind of avenue to compensate whatever was lost....what is more of a concern here is the company's` cash flow situation and their borrowing from one to pay the other....hopefully they will resolve that too.... Hope all is good your end...Easter is here and me and the family are flying up to the north of Brazil to Olinda for some well earned R and R..hope you have a good time there too..cheers buddy
Looks like they were in charge of block making. You couldn't make it up if you tried.
Should be Larry not lofty.
At this point we do not know the extent of it. Was the person(s) involved supplying materials for cash on the cheap for cash blackmail etc. I say persons as I cannot believe a lone person could unload the lofty fiddle the paperwork etc. We should hopefully be informed soon by the Leed board as to how the fraud was conducted and the value of materials involved.