Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Shullbit!
MANO has behaved perfectly in the circs. These things happen in their chosen field.
Seems perfectly reasonable to me. And nice to hear about a high value case.
Today's RNS is a disgrace.
Regulatory rules prohibit Auditors entering into such contracts with clients.
Full stop..no ifs ... no buts.
www.icaew.com/-/media/corporate/files/technical/ethics/icaew-guidance-identifying-and-managing-conflicts.ashx?la=en
So where was MANO's due diligence? AWOL?
MANO should never have accepted the contract in the first place. MANO's own lawyers are bound by Solicitors Regulation Authority Rules but seem to have ignored them.
Are MANO bound to hand back the deal? Time will tell.
Nice to see someone so bullish. Funny that he doesn't even mention the cartel cases, or the fact that the BBL pilots seem to have stagnated.
Someone posted this on another chatroom site. May be of interest:
https://albertoag.substack.com/p/manolete-partners-update-record-volume
It's a good question because the recent trading update stated that while case volumes are up, size has reduced on average from £139k to £96k per case.
“Big ticket account wins” - does this refer to the handful of relatively large settlement in March mentioned in the update?
100%, this is the big unknown, and unfortunately they can’t update us on it until a settlement has been reached (or a date in court has been set if no such settlement occurs).
The glimmer of hope is that Steven was able to tell us last year that the second wave of claimants had settled. This happened pretty quickly after the initial decision against the cartel in favour of Royal Mail. Hopefully this next round of settlements will be as quick.
But yes, wiping out debt will make a big difference to the bottom line.
Covered by Alan Green today on the Sharepickers podcast, noting the client growth and big ticket account wins.
https://twitter.com/Brand_UK/status/1784941493033046340
I don’t think those are the only 2 options. They expect to receive £13.5m from the ‘Cartel Cases’. This will in effect remove all debt and provide a small cash surplus of £1m. The recent accounts show they are continuing to increase the value of their investments without continuing to absorb more cash. Hopefully the £13.5m will be received sooner rather later , then the ongoing cash generation should naturally increase as the ongoing investment in new cases begins to positively impact upon cash flow.
Market does not like the way this co is funded (see the last part of last RNS) . Needs either reduction in interest rates or share issue before market will look differently at this business. The former is coming so I intend to hold but without much conviction. Perhaps at that stage a wee dividend might alter their appeal!
StreetsJ - its a bit hard on the co to not credit them for expanding and that requires new trained staff and the overheads that come with that. I just hope that work continues to pour in. Otherwise they may have to contract rather than expand further. At present though, there would seem to be more and more defaults and that is good business for this co.
I guess there's some relief in this statement. But if you ignore everything down to what revenue and profit will be for FY24, it's not quite so pretty. The previous Peel Hunt forecast (supposedly reviewed in December but actually unchanged since July) was for a EBIT of £8m. I wrote on here in November that I could just about tweak it up to £5m. Today they say it will be £2.5m. That's after £1.6m in 1H - so just £0.9m in 2H. If you double the first half interest charge (£0.6m) that takes PBT to £1.2m for the FY24 and just £0.3m in 2H. Net debt has risen slightly from £12m in 1H to £12.25m.
So I would say the numbers are pretty poor. Maybe 1.8p EPS for FY24.
However, notwithstanding Cooklin's natural overoptimism, the trends do seem to be in the right direction: case size is growing again, market is growing, house market is reasonably stable (necessary for recoveries) . Profits are squeezed because they've added cost ahead of this growth. I'd be interested to see what forecast Canaccord comes out with for FY25. Perhaps they won't, because it's too difficult to forecast. But that itself is a big problem.
Share price is only back to where it was in February so it's not as if this move means there isn't more upside, but I can't help remain cautious. Fundamentally I find it difficult to trust companies which put 23 paragraphs of good news before telling us - and not even explicitly - that profits will be down in H2 on H1.
....there are other quoted shares in this sector who might be thinking what a perfect time to stick in a cheeky bid!
I am losing big time here but do not propose to cut losses. I might even buy more (again!) depending upon how they are perceived in coming weeks.
I personally think to say “relatively poor” you must have ann underlying agenda
Does it? apart from sp I wouldn't ignore trade volume, number of trades and spread..
Market seems to like
IMV one of top actual reasons is clearly mentioned in this update, check expected PBIT for 2024 - it's better than for 2023 (which was negative) nonetheless clearly is not sufficient to support even current m-cap at existing global interest rate. They do mention a lot of activities in update but the bigger picture - final outcome (net financial result) is relatively poor.
Indicates how difficult is to evaluate this novel business. Will be interesting to see what the market makes of it. Methinks it is doubtful in these circumstances that they will commence payment of a dividend this year.
They are so bashed for no actual reason that even 150 is silly cheap. the future is bright
On 1st glance update seems ok, until, buried deep inside, one reads that while case volumes are up, size has reduced from £139k to £96k per case. Typical MANO disingenuity! Let's see what the market thinks.
Please please Manolete can you wait a few days so I can plough a few k more into this before the trading update.
Thanks
US.
I would expect them to give a trading update around period end, i.e. any time soon.
It’s been a long time though. Could they be waiting until they have a settlement confirmed? Or is that foolishly optimistic?
....I feel pretty sure they have drafted a potential RNS on the implications of the decision in the DAF appeal result but will want the wording vetted by lawyers and accountants before it is released to the market!