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sB,
Apologies , I hadn’t read it in detail , so that is the nett “ cash “ profits in essence ?
Excellent .
If they can keep the wheels on and show that profits sustainably and growth then imho a very juicy exit will come within that time frame !
A few quid pushed our way to give a return on the capital value of the holding of a few percent will beat the bank with capital value only increasing . Should be a nice ride ... let’s hope the first hurdle is cleared this week !
SJL and Hucks - sorry i might have confused on the issue of cash. The c.$20m i referred to was actually the $17m-$22m combined cash generations from the three years to Dec 19, Dec 20 and Dec 21 on which basis part of Toby and Michaels 13m options will vest in 2022 if achieved. Lets see what FY 2019 brings in - we know H1 was $2.2m and net earnings of $1.7m. I agree with the potential timeline you laid out SJL should a dividend be announced - and the realignment of the AGM would support any required approvals for a distribution. SB
SB and BY18,
Can’t recall the share option details exactly but I have a feeling the $20M target may be the annual cash revenue pulled in through the door not a cash balance . That said if they bringing $20MM cash in each year that’s roughly $10Mm each year free cash profit . My guess is that the business only needs to keep say $5 MM cash balance free and clear as I doubt they will do any more acquisitions before sale . We have to wait and see what adultblock and London payout leaves cash at right now for an immediate dividend / tender / buyback / whatever BUT ongoing they could safely pay out $5-6 MM a year whilst building cash ... would be nice to announce a $2-3MM dividend now ish with same again later in year . I would be satisfied with my 10% of that to assuage the pool cleaning bills and to keep the fleet serviced and fueled :-) . My best “ guess” is that they may state in update that cash is sufficient for a SH return but actually delay the official announcement until the results/AGM in March to allow them to get a bit more cash in ... I can probably struggle through until then :-)
Hucks - not mentioning shareholder returns doesn't mean there is a buyout in the wings....anything official in that regard would have to be made public anyway. I just think it would be disingenuous of the board to introduce the subject and then fail to follow it up; although there has been a bit of previous in a similar vein. In the same way the issue of the buyback has just been allowed to drift - as investors we should expect clear communication from the company on its operations and business objectives which affect shareholder interests. SB
It is so quiet because Taproot is behind digital bars :). Otherwise it would be more lively
Morning SB .........Well yes, if the plan is to progress the business over the next few years with revenue of $20m plus there needs to be ongoing shareholder return, if there is no mention of shareholder return later this week, does this mean a buyout? We PI's have absolutely no voice at all, only SJL has in my view, if he was seriously ****ed off and spoke with the II's that might have some effect, we are strictly here for the ride in the hope there is a destination worth reaching, atb Huckster
Morning Hucks. I guess we were expecting the update today - so likely to be tomorrow or Thursday. I take your earlier point on retaining cash in the business; but if such a decision was made - then why make reference to introducing a progressive dividend or tender offer. It needs to be addressed. If we are a growing, profitable business with no debt, and aiming to generate c.$20m cash (as targeted in the director options) in the years 2019, 20 and 21 - what's the plan for that cash? And as much we like to think us PI's have a voice, the reality is our major II's will have a significant influence on company direction and a timeline on how to extract value - and a number have reasonable investments here which will be accountable to their investors. Hopefully 2020 is going to be a very interesting year. SB
Seems very quiet this morning,was expecting more noise somehow. Following on .... Toby must know there will be a blizzard of complaint/critisism if there is no divi or shareholder value at least proposed in the trading update, if such a proposal is not forthcoming my take is that it could well mean a buyout is en route, otherwise Toby will have done a great job in turning the company round and will simply get a kicking for his pains, why would he bring that on himself? just my thoughts. Huckster
I know it would be nice to have a divi, and it is likely there would be a knock on effect with new investors, I think would prefer to the company retain it's revenue for effect and see a sale, surprisingly at 18p or above, its been a long haul of many downs and further downs. If you invest in a good company selling a good product/service sooner or later that company will have its day and the investment works, but you need the patience to wait until the time arrives, I really don't want the pace of consolidation the run out of steam, so for me i would like to see MMX folded into an entity with millions of DUMS and move on....................Huckster