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Ok thanks for that.
The chairman 7 weeks ago hivedoff
While our H1 strategy has been at the expense of short-term revenues, the Board remains convinced that getting the fundamentals right is the key to future success.
We plan to continue hiring at pace. In particular, there will continue to be sizeable expansion in the technical development team. However, both the sales and supply teams are also expected to grow quickly with additions in the US and Europe, as well as in the UK reflecting where we expect to find advertisers and games publishers. These teams will be key to developing significant future revenues bringing both brands and advertising agencies as well as new games with substantial advertising inventory. Additional growth will also bring additional administration and the Group will need to fill consequent managerial positions.
As I anticipated almost six months ago, the Board continues to expect the Group to be cash flow negative in the second half of 2019 but believes that market expectations for 2019 revenues remain achievable, revenues are expected to grow significantly in 2020 propelling the Group towards material profitability in 2021.
Bottumzup
Peterhouse as the then Bids broker would go through a process with the senior Bids team.
They would have hosted/held many meetings and would have relied on the Bids board and CFO to deliver a forecast and then demonstrate that the forecast was achievable and not pure fantasy.
The £5.75m was a Bids driven number agreed with Peterhouse.
Thanks roleybirkin, so in order to arrive at these figures do they consult with Bids or is it just from independent research?
Bottomzup
The Peterhouse write up end 2018 forecast as follows:-
- H1 £1.75m (actual £26k)
- H2 £4.1m
- Full year £5.75m
These are the only numbers I have ever seen delivered formally...
I'm slightly mystified as to where this six million revenue (in six months) is actually coming from. This is all revenue from advertising, which by its very nature should be apparent and obvious. There are some very attentive individuals on this board, and if they are all still trying to fathom who these advertisers are and where their adverts are appearing, then one might conclude that this current revenue forecast may prove a little optimistic.
Lack of any sort of news does not help!
Ok, got ya.
As far as I`m aware (and could have missed it) JD has never actually quoted a figure, he has mentioned `the target`but not any particular figure, and the target is assumed to be the £6m as forecast by, was it Peterhouse(?) or something like that?
Whoever, it begs the question how did they manage to come to that figure anyway so far back in time?
Maybe someone better informed could clarify that.
For clarity Bottmzup, at this stage I do not know if you have to report a revenue miss vs expectations as my posts below.
Does anybody know the AIM guidance on this?
Thanks for the clarification Chestnut1, I understand(ish) what you`re saying, I hadn`t been awake long and my brain was still on snooze!
The only market expectation out there is the £6m(ish) in revenue, although some say £5.9m and some say £5.7m, so what you`re saying is that they would have to announce a revenue `miss` before the end of year trading period if that was the case.
So silence is golden in this case... if they don`t say anything soon then rev`s can be assumed to be on track(ish).
Bob, my view of JD is that when he has time to prepare something and write it down, he talks a good game, however if you speak to him in person or listen to a podcast, he is slightly less impressive (in my opinion) and having worked closely with many CEOs I personally note a vast difference in style and personality.
That being said, there are many CEOs who are like JD and run very successful businesses so I don’t hold that against him. I think he is the right person to lead the business so long as he continues to surround himself by good people as a few of you have rightly mentioned.
Finally, when I have spoke to him, he was very gracious and I enjoyed his company for the 30 minutes or so that we spoke. He is a nice guy and seems quite genuine.
These recent words by James draper I feel best demonstrate the kind of natural (and rare) leader he is.
"The talent we've put in place now in the UK, US and Latvia, leaves me rather excited for the future of the company"
humility and gratitude... I'd work for him in a split second gridz
BTW for transparency, I am Bobman1 on the ADVFN board and some of you will know me from there. I couldn’t use Bob on this board to prevent any confusion with our friend from sunny Hartlepool.
Hi Bottmzup,
My point was that I believe if there is a material miss to profits guidance (by 10% or more) then an announcement needs to be made, but I don’t think the same applies to Revenues.
After all, can you (for example) miss Revenues by 20% on £1m to leave £800k, but save costs of £150k to still leave profits within market expectations and therefore not have to report anything to the market? This is my question.
If you have to report a material miss in Revenues as well as profits vs market expectations by now , then not having a RNS of this nature provides me with comfort that revenues are on track. However I do not understand the rules exactly on what needs to be reported on AIM and by when. I may ask a friend of mine who is a company secretary at an AIM company that I helped to IPO for his view and can then report back.
Exactly that Bob.
And I also agree with chestnut - Lewis Sherlock is the guy that turned up at the interview with a plan - believe the 3 years in 1 is largely down to him.
`Part of me thinks they would have to report profits more than revenues`...chestnut1
I`m absolutely positive I`ve got this wrong..but, are you suggesting that you believe a company only does their accounts if they can declare a profit?
Please say no for sanity reasons!
... IS still there I mean (lol)
Agreed Bob. For me, the main guy is Lewis Sherlock. The “man with the plan”.
Also, you can still be a Tottenham supporter/fan, even if the manager changes. Your belief in the club/company isn’t still there.
Anyway, back to BIDS.
Time will tell, always does.. but for chestnut...
Something I've witnessed many times over years in Industry, commerce and the voluntary sector.
Great Leaders Surround Themselves With People Who Are Smarter Than They Are
What Hivedoff, prickly on the outside - tough on the inside!! You might be surprised.
I’m not convinced he’s not a conker!
Fair enough chestnut...
Tredcareful,
I initially invested in BIDS from the crowdfunding days and so have always been impressed by the tech. In addition, my faith in Lewis and the rest of the team more than make up for my concerns with JD. I also think our current prime minister who runs our country is a plonker but doesn’t stop me investing in the UK.
With regards to the investment, I made the majority of my top-ups in the mid 20s, hence being down currently and have been topping up at these lower levels to bring my average to around 21p. As I say, I am here for the long term and (in my mind) have put a billion pound valuation on the company in a few years so while I may not enjoy the ride, am happy to take a bumpy ride it if it gets me where I want to be.
As for the reporting of revenue, I do not know the answer. Part of me thinks they would have to report profits more than revenues and nobody is expecting a profit this year, so nothing to report. I sincerely hope I am wrong and not trying to deramp the stock as I need it to rise.
Everybody is entitled to their opinions and this is mine, I don’t mean to cause offence.
Bakingmental,
I am not Intrepid. I only have this account.
As I said, each to their own, and I hope it rises today and everyday thereafter.
Better than getting the beano annual for Christmas being on this bb is sometimes.
Lucky for us industry heavy weights that joined the advisory board were more impressed by JD than you.
Also lucky the likes of Codemasters liked him.
Surprised you sunk 100k into a company where the top guy doesn't impress you.... Not sure many would follow that strategy.
But good to have a qualified accountant on board, what is your technical view on if/when they would have to report any shortfall in expected revenue?
Lucky for us that after investing so heavily and then waiting many months, you have now decided it is the right time to join a BB and inform us of your doubts........
Thank you Chestnut for one of the very few balanced and informed views on this board. I have never met JD myself but I share your reservations. I'm not impressed by what I see as ramping on his part. I'd feel much more comfortable if he stepped aside tbh, but I can't see that happen. I admit to having serious doubts about this company in the long term. At the moment I'm hoping for a short term rally at some stage where I can get out or at least reduce my position.