The capital markets day presentation is very useful analysis: http://www.earthport.com/investor_day_2016/ The company is expecting to grow at 40-50% per annum long term. If we take the mid point of its forecasts, in 5 years its revenues will be 50m transactions at c£2.5 = £125m. Its gross margin should be c£90m and its net profit c£37.5m. A low capex, fast growing, high margin business would be on more than 20x in current markets, or £750m or 10x the current… Read More
Quick sense check: The overheads were £25.8, including £2.9m of amortisation - giving a cash overhead of £22.9m. The gross margin is 70%, so to reach cash break even the revenues need to be running at £22.9m/70% = £32.7m. That is revenues up £32.7m/£22.8m or 43%. Transaction numbers grew at 91% in Q1 2016/17 to 2.3m, but revenues only grew at 34%. This seems to be a combination of falling professional income (down 33% last… Read More
Hardly! Read the numbers not their headlines. Pre-tax loss down from £8.7m to £7.2m. Slightly encouraging. But dig a bit and you can see that gross revenue increased by £3.5m but costs rose by £3.2. Plus there's around £8m of something called derivatives gains in there (note 12). Not sure that's easy to replicate year on year. All in all not bad numbers but not great. I see they are predicting cash flow positive in the coming Q4, which is very precise and suggests… Read More
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