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The audited accounts are now published on the Co's website - there's still a lot of reference to Covid when frankly that shouldn't have been the case given that we're talking about the year-end to 31st March 2020. However, there are things within it which give some comfort and possible hope that from this miserable position they might dig themselves out.
Founder & ex-director John Blamire is now out of the picture - in my opinion, I always thought he was the principal financial waster at FLX. Some of the historic Share Options have been cancelled - those that remain have realistic exercise points and at current shareprice levels will benefit ordinary shareholders first. I regard the cash saving steps in exchange for shares as innovative and as they only vest at an sp of 1.95p minimum and at higher rates for other tranches, is very good for ordinary shareholders.
Staff levels at 82, on the face of it seem high for this level of turnover - but monthly cash burn is likely to be much lower now offices have been closed. Following the September 2020 placing raising £1,250,000, secures their future right to end 2021 and bringing in Amati as a new 16.41% shareholder shows good Board contacts and, if it was Mike Read's doing - well done, but he can expect to feel the heat from what are thought to be assertive stakeholders.
My principal negative is that Falanx has expected clients to come to them as well as expecting the SolarWinds link to be significant - the latter I don't think will ever be so. Mike Read needs to understand that he and his sales people have really got to push for this business. That negative sums up imo why the sp is where it is.
https://falanx.com/wp-content/uploads/2020/10/Falanx-Group-Limited-31-March-2020.pdf
anyone of any sort of meaningful size holding here kinda has to hold and hope for the best, around now at least.. as there is so little buying appetite here around now that anyone dumping even 10k or 15k gbp now worth would decimate the s/p even from these lowly - .80's - levels imho.
But that could all change if/when they come up with a bottom line meaningful contract win RNS ..
And, altogether, i still have a reasonable amount of hope here.. as a little real momentum from here can easily beget more momentum again etc.. the neighbourhood jones's taking their product and liking it can breed confidence into other neighbours talking it ...etc..
Apology accepted Missthepenny. Indeed it is very gracious of you! You have outlined the case here very well and though this won't be 3p I am afraid it might over a large expanse of time recover. I am all for opinions which differ from me on FLX. i have avoided since 54p saying "I told you so " to any investors as I recognise they are losing money. I make exception though for the dribbly one and his dodgy mate though. They delayed the results as they know how bad things are. Flx that is and not the dodgy duo. The Chairman's statement as has been commented by others is a load of waffle and deflection. What I have said it is a vanity vehicle and a gravy train. There will be another placing by October 2021 as that is what the company runs on. There has been excellent analysis and discussion here and I have the utmost respect for your apology. However there remains two posters hell bent on abuse and denial of reality and attempts to bully anyone who is negative on this share off the board. The falling SP and paper losses are their reward. This company is uninvestable. Avoid!
Hi all,
Have to swallow my ego and apologise to FK1 and NS here. I was sticking up for this share after a recent update read well while the SP spiked accordingly. However the SP is back down and having read the results am not surprised.
Falanx need to finally start delivering contract news in the near term. They've been building up to this a long time now while the SP has been on the slide. Everything appears to be in place; their products sound good and it is indeed a hot space. However it seems they need to get out there and hustle more - can't just follow the field of dreams marketing plan of 'if we build it they will come.'
With the price bottoming out and more interest being shown in their products, things might turn around and if they do it could happen quickly. However, this now NEEDS to happen as patience is finally running out even for 'loyal shareholders'.
This time next year the SP could well be either nearer 3p or 0.5p! Am obviously hoping for the former as I'm back underwater now, but we need contracts to be signed for this to happen, not more placings obviously.
Am going to continue to hold and hope the company are finally near a genuine inflection point, but I won't be espousing the investment case until more cash starts coming in.
GLA.
Hi dactions - best post we've had on here for a long time.
Welcome to the madhouse.
My take on today's very delayed results announcement is disappointment. Particularly that Chairman Alex Hambro's statement is effectively nothing at all about the losses incurred for the year ended 31 March 2020.
It's not honest - as it's all about excuses and the impact of Covid which as we all know didn't impact them 2019-2020. Having some small commercial link to SolarWinds myself, I don't see that tie-up for Falanx as anything other than superficial and I've come to the conclusion it's not going to bear the fruit that Falanx thinks it is.
I'll only believe there's a 'possible' future for Falanx when I see the Directors honour their pre-results intention of buying the shares at 1p. And if they go beyond the £75000 which was previously indicated, then I'll feel a bit more comfortable.
Otherwise, I see a total loss coming.
So - "they are broadly back to the pre COVID-19 run rate." - and the share price is back on the pre Covid slope and going in the same direction.
· Overall loss £2.88m (2019: £1.83m)
· Adjusted EBITDA* loss £1.56m (2019: £1.25m
· Shareholders' funds £4.97m (2019: £7.63m)
· Cash of £1.33m at 1 October 2020, following receipt of initial tranche of net proceeds from fundraising, sufficient cash for organic operations, normal working capital profile
Had over £4m in cash a couple of years ago, when the share price was over 3p
- Balance sheet strengthened following £1.25m equity fundraising completed 29 September 2020 and remains debt free
Wow remains debt free, not hard when you can raise £5.3m+ over the last two years from Investors, current market cap £4.5m
Triarii is getting positive customer uptake in the UK and US, and it is now part of the SolarWinds global TAP program with its access to over 22,000 Managed Service Providers ("MSPs") globally
- How much revenue anc clients have they generated from this game changing partnership announced two years ago that was going to be absolutely transformational for the company?
Interesting, as I thought this was a very hot sector at the moment
Cyber trading performance for the six months to 30 September 2020
The move to remote working opens up inevitable cyber security risks for organisations and we have positioned our offerings to address this growing market opportunity, and whilst orders and revenues were lower at the start of the year than those pre COVID-19 as clients were in disaster recovery mode, orders have since recovered strongly from July onwards and this began to flow through to revenues and margins shortly in September. The Cyber security market is expected to grow strongly with the shift to a more digital economy and we expect this to benefit Falanx.
Note:
The move to remote working opens up inevitable cyber security risks for organisations and we have positioned our offerings to address this growing market opportunity
Result:-
In the six months to 30 September 2020 the division recorded revenues of circa £1.4m (2019: £1.7m)
As with all stocks on AIM, you really never know, so may be a trade in it, but at £4.5m it still appears massively overvalued, remember revenue is vanity profit is sanity
Post trading does look a bit better but will need much more to offset the losses
Revenues in the cyber division were impacted by reduced professional services demand in the Cyber division in the first few months with the onset of COVID-19, but since the start of August monthly orders for these have increased significantly and are now running at circa £0.2m per month compared to £0.1m per month in the first quarter during the peak of COVID-19. The sales pipeline has strengthened with the launch in August 2020 of the cyber security monitoring platform Triarii and it is winning important sales orders. The current order run rate of orders for these services is very similar to that in the second half of the previous financial year to 31 March 2020 and they are broadly back to the pre COVID-19 run rate.