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Johnson lacks honesty , detail and clarity.....he has never set out the scale-up problems clearly, he pretends all is well when it isnt, he feigns surprise when things dont go to plan, he missies his own forecasts, then refuses to budge on what appear olympian forecasts based on current performane, and views s/holders with barely disguised contempt.
You are so right about the process change! They develop a great much-needed product that has OEMs
queuing up and giving orders, and then Johnson can't manage the scale up. The lack of planning appears breathtaking: COO appointed far too late; no articulation of HR talent programme, a lack of proper QC.etc
For goodness sake, this was trading above 25p in November. Absolute shambles from the management.
If you can sell at over 6p then do so. You might find it buyable at 4.75p later .
Pokerchips very recent comments (why suddenly no longer shown!) & those of Fevertreeman remain on the ball.
When I last commented in mid-February I said' I live in hope that they have or will very soon iron out the production problems'
I had sensed for some time that there was a lot of scrappage going on -realistically that can only have arisen in either Stages 3 (Chemical Vapour Infiltration(CVIST)) or 4 (Hear Treatment) of the manufacturing process as detailed by the company online. The company refers in communications to 'Furnaces' only with regard to Stage 4(Hear Treatment)!
My suspicion is that the principal problem area is & has been Stage 3 albeit not described online as a furnace. I maybe wrong but from the start that Stage as detailed online looks to lack suitable controls that would ensure uniformity of product through put - and hence potentially much scrappage . As to the extent of Q1 2024 scrappage is all very vague (as usual) -the amount of extra working capital (? twixt £1.5m & £2m)that ZEUS refer to in their paid for research might suggest that scrappage even exceeded acceptable production! Did it?
Frankly I have doubts as to whether the Stage 3 process as detailed online by the company is how it is now organised!
ZEUS state ' ....that in recent weeks their has been considerable success(!) achieved in recent weeks in reducing scrap' . No explanation as to how or where that has been achieved.
Pleased to see that the Chairman will be leaving -the sooner the better. He clearly did not protect shareholders by asking at the outset the right questions about the process changes as to testing & implementation that have led to the serious problems. As for the CEO he did a good job in getting potential customers on board but must hold responsibility for the production mess we got into as a result of not suitably testing and seeing the major process change was feasible and capable of working before committing us to it. He probably needs to go too.
In my last post I said that the dolling out of huge number of new share options at such a depressed share price was a disgrace -it felt like robbery.
!
"1st Q sales and operating update looks good. Things turning round nicely now. £3M sales for the quarter, but £1.5M of that in March as technical problems resolved. Good turnaround share now. ATB"
Good old Bill with his positive review.
However... 4 hrs later!
Ok a bit of a disaster here and not the news we were hoping for. I'm unsure about what to do here now as part of me thinks it might be prudent to just sell up and move on and maybe if they get their act together I could jump back in at a later date. Another part of me says just hold and maybe accumulate on any positives which come out over the next few months. Any ideas or advice around this would be appreciated. Are the majority just going to sell up or hold? It's a terrible RNS but I do not see it as the end of the world. What say you?
Well they do seem to firefight , rather than proactively manage ahead .... but scaling up is never a straight forward task
Bundred should have realised that Johnson was taking on too much and spreading himself too thin , ..and the need for that COO much earlier so that Johnson could step back and manage Operations better
Completely agree ! Johnson has to go - no hiding place for him now. The Board should be contacting h/hunters - if s/hing isn’t done then Easton and Maddocks may well throw in towel, as he and Bundred have totally legged them over. Johnson has comprehensively failed as CEO, and clearly doesn’t have the management skill set to manage the expansion as the multiple mess ups have shown. What’s worse Imb is that he seems to utterly clueless about how to manage shareholders . The RNs is another car crash!
The money they raised recently for Operational use did not look like enough given the problems they already had to solve, as other posters here indicated,at the time....it seemed very tight.....so it doesn't seem overly surprising they are indicating they will need more
Unacceptable to mix all these issues within 1 RNS and then not provide the full detail on the amount of cash used in the scrap problem or how much more it will be needed on going .... the vague term " a sizeable amount " is not good enough and an unacceptable treatment of shareholders
Disaster that they didn't get a COO appointed well before they did ...Easton seems to know more than the whole of the BOD combined
Anywhere near the new issue price. How low will the price be of the new shares?
Like i said, i was worried it had all gone a bit quiet, now we know why...
Another whole new problem to deal with. It would have been go to know what are the approx scrap percentages so that shareholders could make an assesment of the scale of the problem.
It would appear that the volume of scrap material produced during production is significantly impacting the company's ability to ramp up profitably. This was supposed to be a high-margin business. What a cluster ........ So now we have production and scrap issues.
I think the board should have to defer their salaries until this mess is fully sorted, and use that cash instead of a fundraise.
Terrible management should suffer.
For the auditors to sign the accounts off they will need to show they have the funds to be a going concern for the next year. The inevitable fund raise will need to come quite soon.
Given how leaky news for SCE typically seems to be I am surprised that the share price had not fallen even further before this rns.
Bundred should have been fired a while back! Proved an utter disaster as Chair the moment the business moved in the key scale stage: incompetent, arrogant and out of his depth as a listed company chair! Todays’s RNS show the only competent person appears to be Easton; shareholders have been absolutely skewered by Johnson and Bundred. The RNS is hopeless!
BillB, is that a joke? This trading update represents about the worst of all the potential scenarios at this stage. A further raise now significantly increased in likelihood, in what is a very punitive market.
Bundred should have been fired a while back! Proved an utter disaster as Chair the moment the business moved in the key scale stage: incompetent, arrogant and out of his depth as a listed company chair! Todays’s RNS show the only competent person appears to be Easton; shareholders have been absolutely skewered by Johnson and Bundred. The RNS is hopeless!
What a shambles.More cash needed already.
Such a badly written RNS,both in terms of content and grammar.
At least Bundred is going..
1st Q sales and operating update looks good. Things turning round nicely now. £3M sales for the quarter, but £1.5M of that in March as technical problems resolved. Good turnaround share now. ATB
Things are looking up! Blue day 👍
8th April looks highly likely now. Could be tomorrow but that would likely signal iffy news.
Not long until the holy grail update
Perkylad, expected sales aren't £8.3M - that was the full year revenue figure for 2023.
Full year revenue guidance for 2024 is £23M with a notional split of £9M (H1) and £14M (H2). Q4 revenue for 2023 was £3M (flat £1M per month) and, as I've suggested on another forum, anything under £3.6M Q1 revenue is unacceptable progress, £3.6M-£3.8M represents reasonable progress and £3.9M+ would be positive. A 30% Q on Q ramp up from £3M to £3.9M would see them need to repeat the trick in Q2 to £5.1M in order to achieve the £9M H1 revenue projection.
As for it all having gone quiet, there was no reason to expect them to announce anything between the trading update in Jan and the trading update in April, unless for a further contract announcement but I expect that to come in Q2.
Prelim results should be out soon (last yr on12/4) maybe there will be some info on that too...
Could do with an update and to see if expected sales hit £8.3M.
Its all gone a bit quiet which is a bit of a worry...