Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Very good post Martyh thank you for taking the time to post that. It is correct to point out that Winnifrith is essentially backward looking in his criticism of the company and he doesn't give any credit for the here and now. The company just needs time to win orders.
Just read the TW article.
He’s just looked at the figures in the interim results and think they will need to raise cash at some point. He doesn’t have any extra information, he’s just looking at the interim results.
As always he is selective with the information to suit his purpose. He assumes the following:
1) Hasn’t assumed cash flow from orders (on the basis he doesn’t trust the company etc)
2) Assumes the £700k of loans will need to be repaid in the short term.
Let’s look at the reality:
1) The company has announced orders of £2m+. A number of these have already been shipped. Based on just the 1 Euro/watt base price we were told there would be a 35% margin. Since they are selling for over 1.2 Euro/watt the margin should be over 40%. Therefore the orders announced to date should create £0.8m+ of positive cash flow in the second half.
2) As I’ve pointed out before the £700k loan balance is made up of a £530k interest bearing loan and a £170k convertible loan.
The interest bearing loan is from Gavin Mayhew, a non executive director of the company. Gavin has a major shareholding in the company (21m shares) and has always supported the company (in December 2019 he converted a £1m convertible loan into shares at 8p per share when the share price was under 4p). I think it very unlikely that he will call the loan and jeopardise his holding in the company (which is worth much more than the loan).
The convertible loan is convertible at 10p and £100k was recently converted into shares without the need for any cash being paid by the company. That leaves just £70k that needs to be settled.
The company had £588k of cash as at 30 June 2020 and received another 330k from warrant exercises in August – making £0.9m in cash. This alone would be sufficient to cover overheads for the second half. Add in the cash flow from orders and the company should be in a very comfortable position and should be cash flow positive going forward.
At some point I expect a trading statement which will state that the company is cash flow positive for the second half of the year.
And he has come to this conclusion on what basis?...the IP situation?....me personally I believe that the graphene angle with paragraf further down the line is where there long term goal is...paragraf are no mugs....plenty of money is being invested in there to have an association with them is a very big positive