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Didn't see this coming after the positive trading update only a few weeks ago.
Nothing wrong with raising for expansion and ESG does seem to be a big growth area but it's pretty clear the market knew this was coming as the SP has been gradually falling over the last month or so. Retail investors the last to know as always.
Borrowings are a bit on the high side so improving the balance sheet is no bad thing. However, i find it difficult to value MJH based on their p/l etc. Always makes a healthy top line EBITDA yet is still loss making. These one off costs always seem quite high and never seem to disappear. Professional fees are very high IMHO.
Finally announcing a retail placing after hours and then closing it within 1 hour must have caught people out - the hoped for £1.5m raised £220k.
Leaves a very sour taste.
Another management that care very little for shareholders while rewarding themselves handsomely.
The earn outs are the biggest problem, not just with MJH but other companies as well. If investors are to make informed decisions about the company, they need to be informed on the liabilities. All reports should have details on existing earnouts and progress reports on potential payouts.
NFC acquired a company, Mach49 and apparently agreed an earn out with no financial limit, what was the Nomad doing? Got found out because the acquisition is doing well in the US. In February, they came to agreement to settle at $300m max. Wiped out NFC's profit for the year, still paid a dividend though.
Another one along with Duke who have given 1 days notice, hopefully not a trend.
Serves them right the sp is already lower and Another I will be voting against all directors at agm (as ii is easy to vote on) . Won't make much difference but if a few more shareholders do it would!
Agree with all the sentiments here about management's upcoming underserved LTIP bonanza.
It'll probably be a futile protest, but here are two questions I've formally submitted to September's Retail Investor Presentation (admittedly post- wine, hope I've managed to remain objective):
"Retail shareholders like me have been diluted by the August fundraise, while already nursing heavy capital losses since the IPO.
In this context, the recently-clarified LTIP implications are clearly an insult to shareholders. While management has worked hard to increase adjusted EBITDA, this is an easily manipulated figure. Morally, management should not be handsomely rewarded for delivering significant capital losses for their shareholders.
In a recent RNS, MJ Hudson publicised research by Progressive Equity Research. Were the dilutive implications of the LTIP factored into these projected earnings per share figures? If not, to knowingly direct investors to overstated figures would be deceitful management conduct.
To restore MJ Hudson's integrity, good name and trust, will management please consider urgently revising the LTIP, to delay the vesting awards and ensure staff are only handsomely rewarded when shareholders also receive a return on their investment?"
Fingers crossed for a positive update in the presentation, but not particularly expecting one.
SBK
SBK, been any response from the company?
Hi Tank!
The investor presentation feels a while ago, at the time I don't think they were intending to materially change the LTIP from that explained in August's fundraise RNS.
The recent accounting issues clearly add to shareholders' sense of injustice . Might management suffer a guilty conscience attack for having lured, with an overstated EBITDA, investors to the fundraise, and reduce the LTIP accordingly? Not holding my breath, but they definitely should!
Hopefully they get accounts finalised ASAP that give a true and fair view - at least then investors can take an informed view on the company, either way.
More buys than usual today - possibly a tenuous chink of light in the darkness?
SBK
The silence from the company is loud as hell.