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What the de-rampers appear to be missing is that the money raised has thus far has not only remained in the bank but has increased (cash does not just turn up in the bank account by magic).
Whether the money is used to make payments or to aid the growth of the company, long term holders couldn't care less, provided costs are justified and result in a stronger more profitable business that in turn lifts the share price.
Yu raised £7.5m in 2016 and £12m in 2018. It will be difficult to raise any more money from the market IMO.
"How did they manage to make their industry payments in the past?"
From the flotation proceeds in 2016 and 12m raised from placing in march 2018
How did they manage to make their industry payments in the past?
Also I think investors were well aware that because of the accounting error late last year the margins will be low, however they are taking strategic measures and effort to increase the margins. I believe the next update will be the key player.
Wongtogo, you’re missing the point, the company increased dividends by 258% from a company that’s never recorde a profit and with the way it’s going probably never will. Dividends are paid to investors, however 53% of the dividends are paid to bk. No wonder they are being increased.... You also claim that aim market is a boiler room market ( then why invest in it) it’s BOD’s in the main that cause this opinion of AIM, so you can hardly blame MM’s in taking advantage of greedy BOD’s. See you under a quid and less ;)
I never like the term 'accrued expenses' because it is just a big pot that could have anything in it. Are we to assume that the increase of £10m in accrued expenses is just their attempt at growth? I want a more in depth breakdown of these figures.
What Cash?
Trade payables = £30,493,000
Trade receivables = £16,139,000
chaebol - you may have been right in the past but you've also been wrong... you could be wrong again.
Wongtogo, my forecasts have been a lot better than yours. Enough said.
Excellent point, this large industry payment is known well in advance of the due date and should be made public
Was that you that said exactly the same thing early in the may at about £1.11 level and within 2 weeks went to £2.70 , you flooded this board back then with negativity and nodouth were helping your own agenda fair enough, but note all investors here were paid dividends including myself not the BOD but investors
your forecast is about as reliable as a punter at the races meeting see you back on the BB at 60p
Can see a downward drift the next few months. Will reinvest should this hit 60-70 p levels. Seems to me the more money the company generates the more money they will lose. BOD making 250 k a year and paying themselves dividends from a company that’s never recorded a profit.
GLA
AIM is full of companies were the Directors have been gifted shares, and those that have had discounted to chicken feed , but not that often with a CFO shelling out 50K of his hard earned money tax paid by the way not borrowed, so I will disagree with you on that point, and that was after the independent ferencic analysis as well . So saying :One shouldn't read too much into it; Is going against what most investors would call a positive sign.
Having spent some time mulling over the last RNS and previous 5 there is no contradiction to what was originally said by the CEO after the FCA investigation found no reason to look at the company any longer. He is fully committed to returning share holder value here and all that is been done since last year backs up that statement, and all he said what would happen has happened .
It's a common practice for new executives to buy shares in their first year in employment and sometimes they're provided a loan by the employers to do so. One shouldn't read too much into it.
https://www.investopedia.com/articles/02/121002.asp
I did think that this was a good business when they stated that they were in profit and making good margins. Turns out to be all lies which is now being confirmed by the poor numbers. That's why my view has changed. This business will go bust.
Why won't they tell us how much the large industry payment is??? They only have £13.9m of free cash. BK is a con merchant, taking money out on the IPO and The Group has transacted with CPK Investments Limited, an entity owned by Bobby Kalar, during the current and prior financial period.
CPK Investments Limited owns the Nottingham property from which the Group operates and rents it to Kensington Power Limited under an operating lease. During H1 2019 the Group paid £60,000 in lease rentals and service charges to CPK Investments Limited (H1 2018: £60,000). The amount owing to CPK Investments at 30 June 2019 was £nil.
The below sounds positive to me.
Bobby Kalar, Group Chief Executive Officer, said:
"I'm pleased to report that our sales expansion is going to plan and the compliance and governance measures introduced are performing well. While low margin legacy contracts are still being washed through our accounts, we have taken action to improve our positioning. I look forward to updating the market on our performance and growth ambitions.
"The investment case for the business remains the same and market opportunities remain high. I still believe that Yü offers a fresh approach for small and medium sized businesses who have not been traditionally engaged in the utilities market. As founder, majority shareholder and CEO, I am more confident than ever that our Group is ready and able to take advantage of the enormous market opportunity available to us."
Just derampers calling them expert.
Don't agree with you I'm afraid. This business is scalable and that is what Yu is focussing on. Economies of scale will drive through profits. If you're right, however, the new building Yu are planning to move into will be a waste of time.
Read monryspiders old posts. He has changed his tune drastically. He was once saying 5 pounds and now deramping.
Moneyspider, completely agree with you. 7-10 % profit margin will not cover the costs. Margins keep getting squeezed. Those loss making contracts run till 2022 in some cases. They heralded the water business too but they’ve had that license for more than 2 years and profit margins in that biz no more than high single digits. Just cannot see the growth of the company against the costs and profit margins. It was time to move on just happy I made some profit trading the peaks and troughs the last year. Hope you recover from your loss.
GL
Given the very well documented past record and the developments of the past 12 months I think you may find that the management have no option other than to provide timely, reliable information.
I give your attempted de-ramp a 3 out of 10 :)
Given the past record , forecasts from the management can't be very reliable.
Its Back. What a bit like you then. Try going forwards not backwards.
Looking at the numbers this is very disappointing. Cash of £17m but will have to pay large ROC payment at the end of October which on their turnover will be about £11m, that leaves £6m cash - just about covers the losses. The margin of only 3.2% - when they stated that they should get to 7-10% is not good. The costs to support the sales is 7.9% of turnover so the margin can't even cover the costs. This will never get into profit and will be calling for cash in the next 6 months. I have to right off this investment that I made a while ago. The BOD should be NOT taking £250k salaries on a massively loss making business. The lies that they keep telling continue - was 18% margin, then 7-10%, now 3% - soon be negative.