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NU - I would agree that there are some arguments for a placing (although on balance the counter arguments outweigh the benefits imho). However, the really concerning thing is that GB has kept on going on about there will not be a placing and has got very shirty with those who have suggested something contrary. To me this gives 2 areas of concern;
1. You cannot trust GB.
2. The underlying business is not performing. Of course, there is a counter argument that funds are required to drive expansion. We will understand when the results come out which it is. Given that there is no update on revenue forecasts (which are required if they change materially) then I fear the former. We will find out which it is when the results are out. I recall that there was an indication that the company was making operating profits in the final quarter but I might be wrong on that.
Shandy,
I understand your point re placing but I see this as a real positive that gives the company close to £10m in cash at a very important time for their business. It also brings in an insti buyer who has paid 30p a share for a large stake in the future of the business who must have been suitably assured and impressed when they did their due diligence on DVRG. I don't think another placing will be needed here fwiw. As to whether one should bet their mortgage on this, well I will tell you in two years (hopefully sooner) if it's worked out for me.
i agree but a missed profit target should have been RNSed months ago. A profit warning is a profit warning however you spin it. Progress is looking good and DVRG has great potential but if it is cash burning and loss making that is a concern. Only the other week we did a big placing despite GB telling us only a month or so beforehand that we had sufficient cash for the next 12 months. Hopefully, that is the last placing but i wouldn't bet my mortgage on it (if i had one)
I doubt they are profitable and AR due before June 30. This is a high growth small cap (treble digit growth each year) and with £10m on balance sheet it’s about growing at this stage not profit. Sure 2020 will show a hefty loss but I’m looking forward and believe the wastewater potential transformational. I’m sure our Chinese partners would have wanted a stronger balance sheet but also we need cash to fund growth. Best to raise money and dominate the space rather than go very slowly and risk others coming in.
We are the first so dominate the space snd reap the rewards.
Trump losing the election?
The Olympics and Euros being cancelled in 2020 perhaps?
Was it Brexit?
Nope, not a clue
Does anyone know of any reasons why 2020 was a challenging year? Something out of the ordinary that happened that effected all countries and slowed a lot of normal business activity down? I'm struggling to come up with something. I'm sure it also gave us an opportunity that we're not in a position to capitalise on. Anyone recall what it was?
I do find it amazing some people keep asking where are the contracts and revenues then? Give them a chance and they will show you soon enough. Govts worldwide are all now totally aware of the value in waste water monitoring and how it dramatically shorten the time taken to alert authorities to potential COVID outbreaks and other risks and identify localities to be assessed as a result. Orders will be coming and very very soon now. Must admit I thought China would be first but maybe elsewhere now before then.
Seems some on this board are getting desperate to discredit the board of DVRG and minimize the amazing achievements, childish ramblings, feet stamping petulance, very funny really.
GB also told us on numerous occasions that there would not be a fund raise with further dilution and got irate when people suggested that it would be required. He misled us there to.
No the RNS sated they are hoping to release on the 28/6, and definitely no later than the 30/6. So not quite set in stone.
EBITDA positive in Q4, whilst encouraging, is reading between the lines an indication that the YE profit target of £250k was not met.
I would have expected the AGM to be just after YE results, not just before. Maybe GB is trying to get the good news in first!!
DVRG is clearly in a stronger position now and the recent fundraise has strengthened the balance sheet but based on the cash burn that will be reported next week 2020 was a challenging year
Already confirmed in a previous RNS that results will be released to market on Monday, expecting forward guidance for the remainder of 2021 and perhaps a revision to the projected £10m revenue.
As an AIM company these need to be produced within 6 months so within the next 5 trading days.
Clearly GB will put a positive spin on them and we know revenue growth is impressive. However, broker forecast was for a maiden profit of £250k and i suspect this hasn't been achieved as GB only talks about revenues and never profit. Happy to be proved wrong.