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YHAL - you're clearly confused, your points make no sense. But that's on you to work out. Don't assume all investors are as clueless as you are.
I think is clear to anyone looking to invest what the position of the company is... it was doing well, overstretched with a number of acquisitions in a short period, hit with a number of key customers losses which impacted revenue, failed FSP was a bit of a mess, then Corona has left us here. The debt is a bit of an issue, but by no means unmanageable, increasing revenue will help it get paid down and also by the revenue to debt ratio will remove some of the anxiety about the debt itself. Until Corona, revenue was on the increase, obviously Corona will have an impact and it's impossible to estimate at this point, but that's the case across the board and proactis should be reasonably well placed to cope.
bunco I should have slowed down, page 121, £12.8M. Amounts falling due in one year. Most of it for subsidiary undertakings. About 25% is bank loan.
Either way it's not an attractive proposition to new investors vs other opportunities and its underwater in total to more than £30M to the bank. You can't argue about that.
That's embarrassing YHAL, either you have no clue what your looking at in the annual report or you're deliberately trying to mislead... Either way it's embarrassing. Farhantihir is correct, the amount payable in 1 year is simply payments due to suppliers, which is more than matched by payments to be receiving from customers.
There is no bank debt/loans due at end of July, your information is inaccurate and misleading!
That's made up of trade payables (14.47m) and other short term liabilities (1.502m). They also reported 16.298m of trade receivables and cash of over £7.7m... They clearly have sufficient short term funds to meet their liabilities. Long term should be OK also - they generate 13m odd a year in operating CF and this has been growing. BePayd should give some additional growth opportunities as it's another product offering (and will be a lifeline in the current market conditions, provided that Due Diligence is robust).
It is in black and white and true and not hearsay. There for everyone to see and why the share price is where it is. There is danger of a dilution to sort out the liabilities.
Ibunco, page 106 of the 2019 annual report under Maturity Profile of the debt with over £15M due within one year or on demand. The year ends soon
YHAL - where do you get this info? I have searched the annual report and there is no mention of debt needing to be paid back anytime soon. You listening to hearsay or can you point to exactly where the company has stated this is the case?
Dont they have to pay back £15M by end of July this year and will they need to issue more shares to cover it?
Don't see why not - debt is at 3x FCF but can, most likely, be rolled forward. It's not due until 2022 at the earliest, so i'm not that concerned - things can be sorted in 2 years.
One thing i noticed when reading the annual report - the chunky debt - the revolving facility has a nominal interest rate as: LIBOR +1.75-2.5. Does anyone know what the real interest rate is?
High debts will it survive.
Interested to see what your reasoning is for a fall in the share price?
10p - 14p.
I think theres a chance we could touch 14p again.