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Well I've added and will buy more on further drops ... hate the spread as only got 20K at 7.59. Robswire and his team can keep plugging away ... borrow some more please!
Robswire - read my note
They did not quote the Loss in their 2021 EOY Trading update or their 2022 EOY Trading Update or their 2023 Trading update. So nothing different or devious about their most recent trading update.
The PBIT number is something that is prone to change through the audit process given the technicalities. As Josey states - the loss was not a surprise to anyone given they quoted net debt and we already knew they had a £3m Loss in H1.
Your posts are getting very boring and monotonous.
Why not add some value to the mboard - If you are so sure that this company is doomed to failure. Perhaps offer a view as to why you think it will fail in FY24?
The board have stated in the audited and regulate annual results that they will be able to remain compliant with Banking convenants even in the worst case scenarios. They have stated they have has a strong Q1 trading. They have stated that £10.8m of the £13.1m Net Debt is underpinned by contracted future revenue and assets.
Agreed but BOD conveniently pointed to debt reduction since interims
Guess they simply forgot (?) to mention comparative for 2022
They’d said net debt was in 13m region so it was clear what was coming if you could be bothered to compare to 2022.
What did you open your short at Robswire?
Apologise to whom?
We knew EBITDA was £7.5m
You were screaming it from the rooftops at the time (in December)
Not disclosing the actual loss may be routine procedure for BOD but is still deceitful
Robswire
Not for the first time on here - you are deceitful and as as ever you won't come back here to apologise
1. Let me address EBITDA which you say we did not know in December. I will quote directly from the December RNS
"As a result of the gross margin increase and ongoing tight cost control, as well as the strong end to the year, EBITDA is expected to be up 15.4% at £7.5m (2022: £6.5m)"
2. As for the loss - they did not quote Profit before tx in 2022 or 2021 trading updates either. It's not that unexpected given what we already knew about depreciation
We knew 95% says Hedge ?
We didn’t know there was a loss before tax of £6.9m
Ebitda of £7.5m
BOD knew in December but kept Stumm
Results are shocking. Future is bleak. BOD deluded
Hanson is still in with 1.5% - why wouldn't he be, nothing has changed since he invested from an adverse perspective. I would argue that the business has made some sensible decisions to manage costs down - so I would argue the business is in better shape now and seemingly has had a good start to the year from a tradining perspective.
Its laughable that some are making a big deal about the net debt - we knew about that in December. We knew 95% of what is in today's RNS in December. Most expected the net debt to be far worse - so this was a positive when we learnt that MM had managed it down fro the half year mark.
What's new in here?
Update on Q1 trading - POSITIVE
£2.5m charge for other non-underlying items - whilst disappointing , this is one off and largely irelevet moving forwards - NEUTRAL
More information on Cost savings including post period savings - POSITIVE (It admirable to see the directors play a part in that with their salaries - refreshing)
Statement from directors that they will remain compliant with bank covenants - even in the worst case scenarios - POSITIVE
The comments on the success of the Kiosks did not blow me away - it sounds like these need a boost to perform better. NEGATIVE (but does create an opportunity going forwards)
Update on the US strategy - POSTIVE (Business was not performing - they will either shut it down or use it to benefit the UK business)
Nobody is saying this business is performing brilliantly; but equally it is not the dog that the derampers want you to believe. It needs to find a way of being more profitable and to grow. I am confident there is a lot to like about this business and would be a real asset to the right owners. I know a lot of compnaies that would love to have their own recycle facility.
As they pause the rental model. Keeping the number of subscribers fairly static to slightly down, so anywhere from 37,100 to say 35,000. We should see debt reduce.
Cash flow statement says 8.1m in cash but 10.5m cash outflow with 6.2m spent on rental assets( 30,500 to 37,100) if they don’t expand the number of subscribers that 6.2m outflow disappears and can instead be used on paying down debt. They also had 4.1m in capital development cost so things like improving the website, adding AI grading, magpie circular website, systems to manage rental customers, systems to manage kiosks. These cost should reduce over 2024 as the money has already been spent, systems already built. Now just maintenance cost which should be much lower. This to should reduce cash outflow and again allow for debt repayment.
Things I dont like are, no news on the corporate rental side, probably no growth here meaning a lot of the capital development expenses to build out new systems and website soly for corporate customers has been wasted.
Ebitda up but not from them selling more stuff, or improving profits but from cutting costs aka headcount and salaries.
Buying stuff in American then shipping it to the uk with huge shipping fees will somehow be more profitable then selling the products in the USA????? ( don’t know if anyone has bought stuff from American but the shipping costs and additional import fees are expensive)
Similar empty statements from management about “improving profits by buying and selling stuff but doing it better this time” said a similar things the start of last year and we have seen the results they also haven’t really said how they are going to do that exactly, just pumped some buzz words like AI to make them look smarter. They need to focus on being traders and trader make profits on volume not per unit. They need to sell more stuff but for cheaper not less stuff but for a higher price. Going about it the complete wrong way imo.
Impairments were up from 0.8 to 1.5 ( rental revenue 8.3m) impairments are almost 20% of rental revenues nowhere near the stated 10%.
We also saw a huge decline in net assets from 19.5 to 12.3m (note her is that good will is 4.4m or a 3rd of net assets)
Absolutely, but the current share price is below the net assets. It’s all about the current share price.
There is a legal way to manage it. Frankly I think it's stupid play to bring the product back here. They should just create the model which allows them to push the product back into the ITAD traders/Asia brokers etc.
Nice to see some retail short action. Plan to top up if they can get it sub 8. Also plays nicely into the MBO narrative ... only a week or so for those trailing averages to plummet.
That maybe true but they depreciate every year 33%, being an accountant I would expect you to know that.
This company is a basket case, debt doubled in a year and flat revenue and loss making.
CEO and COO have taken pay cuts, just shows what a mess this company is.
I expect admin in the next 12 months.
This company is currently valued below the value of its Net Assets of £12.3m
If Hanson's still in? Is an RNS required if a >1% holder sells?
That does not make it legal. I broke the law, and in my defence, I did it because X, Y & Z did.
This is a publicly listed company which is publicly stating its intention to break the law intentionally.
I thought this would have bounced back from these lows by now. I guess only a take over is going to see this back into the teens at this point.
Well just look at PCS Wireless, phoenix and the activity of umpteen others. Lots of post auction gam comes in from USA.
Surprised your not aware of that.
Borrowing up
Tech turnover down
Huge increase in loss before tax
When will they make profit.
Do we know if an investor presentation is planned?
Not sure about this. It's illegal to sell any product in the UK or EU without CE approval. USA phones are not CE-approved.
Surprised MM is not aware of this.
https://certification-experts.com/knowledgebase/what-happens-if-my-product-is-brought-onto-the-market-without-ce-marking/#:~:text=If%20a%20product%2C%20which%20falls,and%20penalties%20can%20be%20imposed.
Potential new categories could include anything, including consoles, but MM needs to be able to add value in some form over a regular eBay transaction between two private individuals. Alternatively MM have to identify an untapped source of product that would otherwise be discarded.
..... And the market gives absolutely no f*cks in response to the RNS as the share price has moved exactly 0.00%.
Fingers crossed an offer comes so we can all bail out of this sh*t show.
Nothing new from the mid-December statement in terms of numbers. A couple of "interesting points" for me:
1) reduced overheads implemented post-year-end, so doesn't affect FY24
2) potential new product categories, is this consoles...?
I think you've hit the nail on the head ViciousHippo. If you can't see growth but net debt increases ... that cash is just funding status quo revenues and ergo, margin improvement is a wash with cash costs. They need to work out a solution for both profitability and cash generation which is not simply absorbed to keep the business in 'stasis'.
Didn’t give us any updated numbers for the corporate rental, ebitda only went up because they cut costs by basically reducing salary. No growth in rental this year, decline in net assets. Increase in impairments. What exactly is there to be positive about here. All they have said is we are gonna try and sell less stuff but for more money without explaining how exactly they will do that.