The only strange thing is how its managed to stay this high for so long. This will drift lower with the continued absence of a deal with a major company. With the company confirming it will again make a loss in 2015 even despite reduced overheads then it shows the income growth is not going to be anything special. Will pxs ever reach profitability? The latest set of accounts warn that they may not. If at some point if pxs cant generate enough money to exist then it will just to have to sell ff and give up. With the income from ff so far i don't think it will sell at a premium. This is the way i think this story will end probably in 2016.
Really think you are not understanding what a profit sharing agreement is. Maybe you should speak to Ian Ford for a full explanation, because you obviously wont accept my view. Let us all know what he says.
The question is has the pxs portion of start up spending costs been met yet?Very unlikely imo.Start up costs were high in the last reported period but it stopped short of explaining whether our share had been fully met.As you know cost of sales must relate to the sales in the period sales occur - boring old accounting convention for you once again - it is therefore highly unlikely that we are free of all that initial start up cost yet.
Also if a truly huge deal were to be done it is equally likely that this would delay profitability again for a time.
There will always, always, be a part of production cost to cover this, it will never cease. It can't, boring old accounting convention again. But, it wasn't me who said that the start up spending had ceased, it was DB. He didn't say the cost of producing Fruitflow would henceforth be free of any cost of the setting up of global production and logistics, he just said that there would be no further expenditure at this stage. If I had written that in a report about my own company, to the bank for example, I would expect them to take that to mean that there was going to be no further rise in those costs impingeing on cost of goods. That is how I read it, but please remember, it wasn't me who coined the phrase. If you disagree with it, call the company and put it to him.
Yes I do know all that but our share of the loot will be diluted for some time to come by the amortised costs of production.To imply that all start up costs are done and away with implies that our share of profit will magically mushroom.It will only grow in the foreseeable by the incremental rise in sales and by the additional margin in profit created by the advances in production hinted at in the final year results.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.