The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Interesting social media this week. Take a look at the tweet from UK in DRC https://x.com/UKinDRC/status/1777702896684999156 . Take a look at the bottom left hand corner, one of the parties out there this week was dma invest.
Take a look at their website advertising the DRC event https://www.developingmarkets.com/upcoming-events/trade-and-investment-mission-to-drc.
Then look at another up coming event later this month in Guinea https://www.developingmarkets.com/upcoming-events/trade-and-investment-mission-to-guinea. Look similar?
Interestingly, in January the Guinea CAA commenced a six month plus English course for all of the CAA staff "with a view to better communication with English-speaking partners"
https://www.linkedin.com/posts/autorit%C3%A9-guin%C3%A9enne-de-l-aviation-civile-agac_agac-formation-anglais-activity-7150874008845033472-Zede?utm_source=share&utm_medium=member_ios
I have no idea whether we are looking at Guinea or not, but I'd be surprised if we weren't. Likewise I don't know who their English speaking partners are, but I think this is possibly one to keep an eye on later this month.
GLR - Managed service contract margins tend to be in the 50%-60% region, the tech deals have lower margins of around 20-30%. For reference see the 28 March 2024 RNS ("The Group generated a continuing gross profit of £1.6 million (H1 2023: £2.2 million; H2 2022: £2.9 million) which equates to a gross margin of 57% (H1 2023: 64%; H2 2022 56%)."
The company is operational geared at the moment to absorb at least 2 or 3 of these large scale MSCs without having to increase head office overheads, so all of the gross margin (less any financing costs of course) will go straight to the bottom line. It will be a transformational deal. What a lot of folk forget is that not all of the investment will be needed straight away, so as the RNS says, they will be able to fund initially from cash reserves and then the debt funding will follow now that they have a signed contract in place. Also, don't forget that in around 5 - 6 months time, (3 months preparation phase + 2- 3 months of operation) they will start getting the first sales revenue remitted of circa $0.8m per month, so that will also be available to fund the business as well.
What this deal also does, is demonstrate the inordinate amount time taken to get a deal finally over the line. It's nearly three years since the contract was initially signed, I hate to think how long it took to get to that point. As a result, a lot of the previously touted opportunities (and those not touted) which have been dismissed as dead in the water by many, become genuinely potential on-going opportunities again. Of course not all of them will convert to contracts, but a quick glance at the 3 Dec 2020 RNS which listed the then live deals shows that the number of opportunities is very significant, and conversion of just two, three or four of them could make a price target of 26p seem quite unambitious.
Well having consigned my shareholding to the bottom draw some time ago, and watching my money ebb away, with countless jam tomorrow fundraises, dodgy boat deals horrendous port deals, Iran deals falling by the wayside, one would be mistaken for thinking this share was basically a lifestyle share for the fowler clan. However, having read the recent financials things were actually looking quite bright, in an effort to bring me to a profit I topped up with 250k about an hour before the announcement. I then went out all day and came back and read the announcement. I’m pleased to see this contract and any reference to funding its development looks not to dilute shareholders. I genuinely believe we will see a retrace back to double figures, and also the numbers quoted are on the tentatively conservative levels. 1.3 million shares that after about 10 years may see some value yet. We live in hope good weekend all.
Been busy all day and just noticed we're blue. Very nice.
And delighted to read a small, but characteristically insightful post from Only1. Even happier not to see any sign of the so-called Dr Vander.
WB is most unwelcome, however.
Have a great weekend!
Tell me about it
Well actually, don't !
Threeput....ime still enduring jakethedogs conspiracy stuff,at least once a week,under a new name.....he's a nightmare,with his weird beliefs.lol.
Nice to see ..
PS: WelcomeBoost.. is that you Gordon Bennett?
Glad to see some positive movement.
Started to pay attention to the SP again as I am beginning to think I might actually come away with profits, assuming the SP gets to 7p.
We re gonna be 16p next week or something. Brilliant news. It has been a Welcome boost indeed.
Drowning out the resident gloom merchants anyway, they will have to up their multi ID game.
Told you guys to relax, not many companies sub £20m in the small cap space that are actually profitable in blue sky markets / tech markets.
If there are please let me know always happy to diversify.
If the profits are 60% then you don't even need to do calculations just enjoy the profits
If the margins are less then the investment case is still absolutely strong at 20%, you have to recall the company was already strengthening its balance sheet and looking investible before this contract landed. In reality the contract has probably only added maybe 1.5p to the SP (~£4m cap) which is absolutely absurd.
I am eager to view the call next week (if there is one) and see what PF says about finding funding (which will likely be super easy to find since they're in with the UK GOVT now and trade ministers) and second what the margins are expected to be for this contract.
DRC might want to offer the funding themselves for this in return for WSG to hold the revenue in a DRC bank account, having $10m+ USD in the DRC bank accounts is very good for FX control and to support their own currency so win win for both parties. If not I suspect the UK will finance any shortfall to get it up and running. Or a bit of both.
I think the phrase you're looking for is IWWTBOOTFTW
Fair play WB, £365000 pa is not too shabby. 😉
See you next week........................... or will we??
No it’s not it’s 7 days or 168 hours just like any week.
Mike, investor calls next week. PR will also follow. PFs biggest achievement to date he will be crowing.
10% down at lunch to blue bodes well
Let’s see what next week brings.
Rebs: you have WB and is 40+ posts to thank!!!
Someone has definitely got the hoover out judging by price action this past hour
WB: what’s the second contract that you hope to get signed? Any idea where it is? But it’s coming next week??? Good to know. Thanks for the deep research.
Three putt
he'll be travelling back I imagine ,.. expect some pR next week would be my guess.....
Have a good week end all..
It is nowhere near 3.7.
Was that your sell at 16:05 WB for your £500 profit today? If so, you can stop posting now thank you.
Surprised we haven't seen a PF interview yet, maybe Monday ? Looking forward to that 'grin' again
I have 400k shares - now shut the feck up WB.
this will rise better without your noise
HH reincarnated as WB .
Probably aiminghigh2021 or some other troll bought in.
Anyway nice U turn in price now the profit takers are drying up. MM,s played it well.
Let someone else talk, WB. I want to actually hear something productive, not you shouting your mouth off.
31 posts WB
Welcome boost - not welcome - go away