Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
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I wonder what he will do in response to these and last week's results?
It's also fascinating how there is no mention of him at all in either announcement.
Fascinating.
I am impressed with your confidence and more realistic analysis of the position and am surprised that the share price has not dropped today. My original reason for buying -at much higher price than today was that their product sounded attractive but with last quarter performance of 2 contracts at £120k plus and 13 at an average of under £25k each it looks as if they have been unable to convince businesses that there is a need for this technology. To hit the lower bookings target they need 35 big contacts (over $150k) and 240 small ones (of the size signed in the first quarter) in the next 9 months - a very tall order. As Richard Griffiths has a blocking shareholding they can't raise new capital without his agreement which gives him the whip hand. I will stay watching from the sidelines.
This is extremely difficult to call. Business is still very very difficult out there, and closing deals is a protracted and pain in the neck process - I think another raise Q3 will come ahead of money being too tight. Long term still looks good though, sales team all in place, but will take time.
According to last week's update, FY24 cash cost base is circa $23m and management expects to deliver FY24 bookings performance within the range of $13m to $15m. This was confirmed again this morning.
On the other hand it hardly takes a genius to work out that if the cost base is $23m and the bookings are $15m then there will be a $8m shortfall.
Management meanwhile maintains its aspiration to exit FY24 at cashflow breakeven and now reports a cash position of $13.3m as at the end of March 2024.
The firm currently employs 112 employees as at 31st Dec 2023 - it looks to me like that is going to have to drop a bit more to around 90 perhaps, meanwhile they are burning through cash at around $4m a quarter. With USD 13.3m left, that gives them until the end of 2024 to turn the ship around [i.e. enough for three more quarters]. That also of course assumes no revenue which is no plausible - any revenue made over the next three quarters must aid the cash position.
Getting in now is clearly right at the bottom of things, and it is a straight choice - do you think they are going to run out of money and need to raise funds before the end of the year, or will business improve to such a degree that the operation becomes self funding? As Mr Kelly advises today, there's been strong contract growth, and as last week's announcement advised, the growth will not be linear, more like a J curve.
The company currently has no bank loans, and a wealthy prominent large shareholder in Richard Griffiths. I am sure a favourable deal can be done with him if necessary, but frankly, I don't even think it will be necessary. This company is now set up for growth - I think it will deliver and have bought more today accordingly.
In time I suspect this may be my best performer in my portfolio.
Rose tinted glasses comes to mind.
But hey funny old world.
You have to wonder why the trolls keep posting on here.
If I am not interested in a co I go and look for co's I am interested in
I don't waste my time trolling bulletin boards
Funny old world
Revs are so small and cash burn so high it’s just a matter of time before they dilute
There’s basically no reason to buy or own the shares right now. Those that sell will get them lower if they want back in
More nonsense from the same trolls
Management have said the same before - that the foundations are in place to deliver - and they delivered only $0.7m.
More money will need to be raised as the cash burn is still high. And to raise more money means further dilution.
The shares are now in accumulation phase.
The same people have been rehashing the same old news
Markets are forwards looking,they have very compelling technology Massive upside going forward as the brand rebuilds
"Management believes that the foundations are now, for the first time, in place to deliver steadily improving pipeline predictability and performance."
I don’t know if you know this but you’re correct, something wrong did happened last year…..
With the sales team now fully set, and with partner and customer interactions building, we remain focused on delivering against the guidance range and phasing we have set out for the year as a whole.
GLA
15 new contracts signed, new logos trusting the business, large enterprise deals which slipped and are forecasted to close this quarter now.
Sorting the Wandisco problems out and building a solid base. Keep the faith!
Something has really gone wrong here of late
See you at the next raise
That’s encouraging to here , particularly after this week !
2018 Article / Top Ten Richest Channel Islanders -
9. Richard Griffiths, £300m – up £120m
Richard Griffiths is living proof that you don’t have to be a straight-A student to get on in life. He left school at 16 to work on the family’s sheep farm before meeting a greyhound trainer with City clients who would place huge bets on the dogs. He quickly gained an interest in shares, reading newspapers and educating himself in the ways of the market. His first investment – of £1,000 – in 1985 made an impressive £300 profit. He went on to take his stockbroker and investment bank business from a start-up to FTSE 250 member in five years. Today, as a fund manager, he has interests in 26 companies worth £256 million.
He’s not even been appointed for 12 months haha. gtfoh
@meistermeister - you have a right to your opinion. Assume you won’t be posting on here anymore if the stock is “dead”? ! Close the door on your way out please…
Not sure the ex SAGE CEO is as steady as you state. The numbers do the talking and they are not only bad but extremely bad. His magic has long gone. There are much better opps out in the market. This stock is dead.
Yes! Beats expectations! Isa will look very healthy in a couple of years!
Yes I think many will, I’m expecting more buying from the bigger holders who have been selling to offset tax. Expect more TR1’s from these High Net Worth individuals and ofcourse from the BOD too.
Guess what I will be buying?
It always amuses me when the market pretends there was big news when in fact all the co did was repeat the previous statements about the impact of the fraud.
The current Ceo (ex Sage Ceo) is solid as a rock and a steady pair of hands
Many of the BOD have bought above this level, expect they will add as soon the trading window opens.
Do feel for those who sold in the low 40’s..I will be buying in the 50’s , this will go back up to 70’s in the next few days/weeks..roll on next week