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mol, I suggest the wording in that risk was somewhat economical with the truth or more likely had not been updated from the interim results stage. Also in the EOY Report was the following "The Functional Fibres division (SlimBiome®, OptiBiome® and WellBiome®) grew sales by 151% to £557,539 (2019: £222,235) despite the challenging trading environment created by COVID-19, which limited our partners' ability to innovate, formulate and launch new products during the year. The division delivered positive EBITDA of £67,271, compared with an EBITDA loss of £451,572 in the previous period.
The Probiotic division, our wholly owned subsidiary Probiotix Health Ltd (LPLDL®), increased sales by 107% to £821,126 (2019: £397,831), despite a number of customers postponing product launches or temporarily shifting their focus to immune health products in response to the Coronavirus pandemic. The division generated positive EBITDA of £88,762, compared with an EBITDA loss of £467,704 in 2019."
At the half year stage SOH commented that "Whilst uncertainty within the global economic environment will create challenges, we believe that our proven strategy of working with multiple partners, across different application areas and geographies within the healthcare sector, will limit the risk related to any individual deal, product, or geography, and we look forward to continued further progress over the year as a whole." This followed First half revenue growth of £744,821, a five times increase in revenues from H1 2019 (2019: £148,818). However, at year end the growth had fallen to 100% over 2019 despite the fact that with royalties waited towards the second half revenue growth normally accelerates (see 2019 v 2018 which was 5 times higher than the first half ) and this more accurately reflects the impact of Covid.
Now the really good news is that with the share price could quite easily rocket by 50% back to the mid 60p level as soon as next month when the preliminary eoy results are released if the second half compared to first half growth to include royalties is anything like the trend reflected in the 2019 accounts; a tall order but who knows?
Great news that LPLDL study has finally been released and should accelerate pharma sales of the end products in India and Italy
I really don't want to labour this thread - so my last response to same
but this is what our company noted in year end accounts - signed off in Jun 21 - which if our Directors' become aware of anything prior to sign off then obliged to note same.
Risk
The global implications of the economic impact
of COVID-19 could affect sales and profitability.
Mitigation
Although COVID-19 has affected some parts of the
consumer business. The majority of sales are in the business
to business sector across many countries so the impact is very limited.
Going Concern note
Management have considered its forecast of the group’s cash requirements reflecting contracted and anticipated future revenue and the resulting net cash outflows. Management have not seen a material disruption to the business as a result of the COVID-19 outbreak, however,events are being kept under constant review, and remedial action will be taken if the situation demands it.
and
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-15-revenue-from-contracts-with-customers/
ain't rocket science
albeit I may have misunderstood skid post and my response wasn't well worded nor perhaps even necessary
lol
bw all
mol
And just to reinforce the covid impact on payment lead times in todays Times:
https://www.thetimes.co.uk/article/barclays-urges-late-paying-large-firms-to-settle-up-2hzncljtc
One of Britain’s biggest banks has called on the “social conscience” of large businesses to encourage them to settle bills to small and medium-sized suppliers on time.
Barclays said that the late payment of commercial debts was damaging cashflow, preventing new hiring opportunities and investment and in some cases putting suppliers’ survival at risk.
The lender said that more than nine in ten medium-sized companies — those with 50 to 249 staff — were waiting on overdue invoices to be paid. The figure across all small and medium-sized companies was three in five, while two in five said that they were more likely to experience late payments because of the pandemic.
Four in five of the 500 surveyed business owners who had experienced poor payment
The other thing overlooked re payment lead times is the once-off impact covid had on businesses of all sizes for the payment period in question.
62% of all small businesses experienced either an increase in late payments and/or had payments frozen
completely as a result of COVID-19
Source - Federation of Small Businesses
As an aside, due to the time taken from the close period and the issuing of the annual / interim report any issues in collecting debts should be reported in post period events.
Elrico.
It's a very valid question and one I analyse as it 1. If a company manages receivables well they tend to have good overall controls and process 2. Shows that the board see cash as a key kpi 3. Is an indicator they have secured contracts on good terms especially with retailers who know how to squeeze margin and cash.
As I've said it is difficult to tell these from 1. the lack of reporting required at interims, the full annual report does provide a better indication due to notes to the accounts 2. Optis business model where invoicing / revenue recognition are backdated in the reporting period and not due.
Skid,
Aligned, friend. This is one of the points I made some time ago, and I'm not an accountant. Debtors numbers should increase as sales and invoices increase, more so under new accounting rules. Caveat; assuming all invoices are paid. :)
Mol.
You clearly haven't much clue on this issue.
Debtors will be made up of 1. invoices (Due to the back loading of revenue / invoice generation in the 6/12 month period on probably 30-90 days payment terms) 2. Royalty / other contracts where the amount is agreed with customers after the sales ledger has closed it the general ledger hasnt.
I haven't said invoices which will not be contractually due and paid shouldn't be issued.
If you have £1m of revenue all of which is raised in the last month and not due for payment and showing outstanding at £1m the calculation as you say is 180 days even if the whole £1m is then actually paid in 30 days - every finance person knows to treat this calculation with care. You also have to 1. adjust for vat 2. Possibly understand the impact of sale or return type contracts.
As I've said hopefully an equalization of invoices through the year will help in future, but as you say should be an area for analysis.
Surely standard accounting convention is to book sales once a firm order has been received and the corresponding invoice raised. There'll always be a lag between invoice date and funds hitting the bank account.
Was there not a number sold within a previous lock-in? Albeit by agreement.
mol
mol, as SOH has agreed a further 12 mth lock-in re SBTX shares, why do expect further sales over the coming mths to keep the lights on?
I'm not relating the standard days calculation to our company - our company - in your words shouldn't then raise invoices for a large proportion of its revenue which isn't even due at year end.
I'll pay more attention in future to our policy re sales in the full audited accounts - looks like 180 days plus!
I'm simply pointing out that our company's turnover, as disclosed, hasn't been received in full in our bank account
and , whilst i'm not suggesting window dressing , it doesn't look good
are we "buying sales" ?
mol
Mol, agree it's good to look at receivables especially movements and also notes on doubtful debt movements in the annual report.
The standard debtor days calculation simply doesn't work when a company raises invoices for a large proportion of its revenue which are not even due for payment of even invoiced at period end.
Hopefully as the business matures the year end hockey stick flattens and hopefully debtors days analysis doesn't shout out like it does now.
Evening martinu
page 8 of the undernoted
https://www.optibiotix-ir.com/docs/librariesprovider35/archive/results/interims-2021.pdf
provides the cashflow snapshot of the story of the first six months and the increase in debtors etc
and £900,936 from sale of sbtx shares was absolutely crucial to our cashflow - otherwise a fund raise may have been on the cards - i expect further sales of sbtx shares in the coming months - which should provide comfort to any investor here that we can call on that asset to provide same - i don't relate it to dilution but just the realisation of an asset to further our greater aims - well done Stephen to have spun it out but not to have hinted at div in specie - albeit the sale of sbtx shares should only be undertaken in the expectation of greater gains within our plc company
We won't be going pear- shaped at least this year 2022 nor I hope thereafter
mol
Mol - not sure whether to thank you or not, re trade and other receivables figure. That is indeed a worry. I had missed this. And it is something I usually look out for, due to a previous holding which went pear-shaped.
Thx bazzao
I've noted before we should forget about Nasdaq anytime soon and the SBTX dividend in specie was a non-runner really ( i commented same on another BB years ago which has now become extinct!) and also will be regarding any other spin-outs which Stephen a number of years ago said was the overall strategy of optibiotix plc
I share your frustration re sweetbiotix and any evening which i have time to doodle (like this evening) I do spend some time trying to gain further info re same
I look forward to update re year end accounts - and will be especially interested in trade debtor figure - because 6 mths revenue of £1,076,044 and Trade and other receivables of £1,285,689 was of some concern to me.
The full audited accounts, once published, do give a bit more detail ie
year to dec 2020
Turnover was £1,523,247 and trade receivables £512,437 which was bad enough (ie one third of year's revenue hadn't been received - in our bank - by year end)
mol
Letitrun,
Not sure how long you have been invested? And yes certainly missed timed buying from myself, albeit did have the opportunity to sell at a £1+ (hindsight wonderful).
My issues are the false promises ie-
Hockey stick
Nasdaq
Sweetbiotix
SBTX divi
The list is endless, unfortunately the market takes the same view and needs serious revenues to change that. Here’s hoping that’s not to far away.
Mol42, excellent research, finds