Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks for the research and feedback Shandy, much appreciated.
Good work SP - Should be a very healthy GP margin on that £700k following the battery switch manufacturing change!
H3RO - re Prolong sales in H2 . I have just received the following clarification from the company that H1 numbers are all DTC.
The revenue from the distribution deals is subject to the completion of the regulatory processes and as the FinnCap report noted , this has been factored into revenues being recognised for FY2020.
FinnCap has £0.9m for Prolong - I assume this is £0.4m DTC and £0.5m distribution deals (6,500 units at c£75 each).
In H1 revenue grew by 71% from a low base so maybe £200k revenue in total. If this is matched in H2 then that's the £0.4m in total.
So H2 IDP is expecting £0.7m from Prolong - so assuming regulatory approval is given on a timely basis that's a fair chunk of the extra £1.8m IDP need to hit YE targets.
In addition to Prolong increases we should have:
ST (£0.5 to £1m extra)
C+L £100k extra (based on H1 numbers)
Growlase ??? Maybe £100k as each unit costs $399
New Product ??? Initial SD order could be £250k
Roots ??? (assume flat, but may benefit from extra marketing spend)
Could also see an expanded range of products and potentially be in more Boots stores. For the majority of last year we had 19 products listed on Boots online it's currently 22.
I think ST could do at least £0.5m just by being in Boots for extra 3 months and better DTC in Aus and US and extra £0.5m in peak tanning 3 months due to expanding wonder serum range and improved DTC (larger client base etc) plus also now in Tesco etc. So £1m in total.
Then C+L extra 0.1m and Prolong £0.1 based on H1 growth and assume Roots is flat (also based on H1).
We were also told that 6,500 Prolong units would be sold to a distributor in Far East. Not sure where this is, potentially delayed due to regulatory approval in the region. Guessing this could be c£0.5m if £75 per unit. Not sure if any of this is in H1, assume not as prolong increase was quite low based on really low H1 last year. If it all comes in in H2 then perhaps that's why Board seem quite confident.
If not, Growlase might now add say 0.1m as should be selling in next 6 weeks and then of course the new product launched in Feb/March. It has 9 SKU and will be sold by all 780 SD stores. Initial order could be c£250k and it will also be sold DTC (cross selling opportunities with ST customers).
So to conclude I think we should be in the right ballpark but we might need to rely on the new product to get there - FinnCap's £15.8m had zero for Growlase and new product.
If we hit £2m profit we will be trading on a PE of 6
Thoughts on whether achieving an additional 1.8m (20%) to H2 2019 revenue is realistic? I can see there are opportunities for growth across the board (100/200k here & there), along with the opening order for new product, however, 1.8m seems steep?!
Joe Bayer's interview today with proactive investors is below.
No major surprises and reiterates H2 revenue of £10.8m to meet year end target of £15.8m and £2m profit.
A few points of interests are:
1. ST going well and DTC in US and Aust gaining traction, albeit from a low base
2. New ST products will be available for peak tanning season - think this will be extension of Wonder Serum
3. Prolong - focusing on influencers and specific forums rather than general advertising (up 71% H1 2019 but from a low base)
4. Good news in that Growlase will be launched in 6 weeks so may be £100k to £200k rev this H2 (my guess - no numbers for this in FinnCap projections). Will follow Prolong model of marketing via influencers/blogs and specific forums. A 12 week trial has been completed in Oz and this was successful - guessing before and after head shots came from this etc.
5. General confidence re H2 and meeting numbers.
General point - no mention of Roots and C+L so clearly interview was essentially a marketing opportunity for IDP.
However, with current share price so low (forward 2020 PE is c6 i think) it is encouraging that IDP are endorsing H2 numbers - this is not in the share price!
https://www.proactiveinvestors.co.uk/companies/news/910453/innovadermas-first-half-revenues-advance-28-910453.html