George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
yep, just looked at the accounts in more detail. For 2021 revenues increased by $1.6m yet sales and marketing costs increased by $1.7m.
How is that possible?
As you say 10 new customers in 5 months is not great, unless they are all big ones, i would have expected maybe 5 to 10 a month based on the high cost and the supposedly high quality and much in demand product.
I would like to see the BOD provide a clear path to profitability
So far the expanded sales and marketing team haven't delivered much value 10 new customers this year so far
It's hard to gauge when there is so little information on contract valuations are these new customers bigger clients so the process of onboarding take longer , how much cross selling to existing clients a financial metric would be good
as well as a monthly client wins update number
The intriguing part is why William Currie and Sir Terry have invested and I assume willing to invest again in the next accounting period they obviously see something they like maybe the pipeline of orders , maybe weshop underpins some of the valuation of BrandShield but that's subjective to the share price at the time so hard to value
I would expect ARR to exceed expectations for the year
With the expanded sales push, we shall see
NO REAL EXplanation as to why Leahy gave this lot more money unless hes privy to some big deal makes no sense cuz the cash burn here will nail this company soon.
I originally rated this as a good opportunity, seems to be underperforming especially the the text EpucSurf has highlighted regarding fundraising. Directors not delivering value to the PIs.
I hate to do it but might just cut my losses, had built up a stake averaging 18p, ouch
Only 10 new customers in the first 5 months of 2022 does not seem consistent with the message of a significant market opportunity/interest and in line with the large increase in expenditure on sales and marketing. The ARR growth for 2022 so far must have come primarily from cross/upselling to existing customers, and eventually this will get tapped out.
I also found the directors remuneration section of the financials interesting. In 2020, pre reverse take over, the cofounders/co-CEO's had total remuneration of $174k each. RTO in December 2020 with fund raise, total remuneration for them in 2021 has gone up to $420k each. $313k of the total was listed as fees so assume this part was a cash payment/outflow. Will be interesting to see what this will be for 2022.
These specific directors have large stakes in the company and obviously are being impacted by the share price, but they now seem to be benefiting quite substantially (in my opinion) from what they are now getting through fees. And as the share price drops they seem to get a new batch of options at lower exercise prices (using the last grant of options/warrants as an example). While their ownership stake is high, their downside risk in my opinion is mitigated through director fees and the potential for new option awards at lower exercise prices.
For the average shareholder at the moment, they are just getting hammered by the share price fall with no respite in sight.
Are directors delivering value to the average retail shareholder commensurate with their remuneration and award options ? This is a very closely held company in terms of ownership so I don't think the average retail shareholder voice will ever hold much sway.
If I had to make a prediction and based on pure speculation I think the following: the current goal is that they are trying to find a buyer to offload Brandshield and the price would be in the range of 10p-15p per share. Currie/Leahy will average down their purchase price over the next few years so that they can breakeven or profit slightly. While the hypothetical sale at that price would not be life changing amounts for the directors/co-founders, they would have derived additional benefits until sale through director fees. There may be no further money forthcoming from Currie/Leahy and this could be the only viable option they see as being left.
Not impressed with this bit either
Given the pace of growth within the Company and the Board's stated strategy of continuing to aggressively target client conversion and ARR growth, it is likely that the Company will engage in further fundraising activity within the next accounting period. This will be tailored to opportunities to expand as they present themselves. The Board is confident that access to such funding will be available from recent strategic investors should that need arise. As such, the Directors are confident that this funding will continue and consider that the Group will have access to adequate resources to meet operational requirements for at least 12 months from the date of approval of these financial statements. On this basis, the Directors have formed a judgement, at the time of approving the Financial Statements, that there is a reasonable expectation that the Group has access to adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors have adopted the going concern basis in preparing the Financial Statements.
no idea why terry is doubling down on the losses here, thats a ridiculous loss