The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Think a lot of the repeated errors are the fact that optis business years ends end Nov not Dec, however lots of payments come within that time as most companies wait as long as possible to pay their dues to everyone they owe. So year end is calendar year not company year, small bit very significant difference.
Btm line is, company is going extremely well and as can be seen with the latest RNS forging ahead with some excellent partners.
I thought the same when I read it as well shadypants2 and I enjoy reading elrico’s blog too. You can’t count it as revenues twice once an invoice is paid.
But if you strip out the sbtx sales and include the exclusivity and milestone payments revenues will be around 1.2 million or slightly lower, and once those invoices are paid cash on hand looks good. The only thing I want confirmed on the year end accounts is that all outstanding invoices were paid and no companies are in arrears.
It’s ancient history anyway, the only question this year is how profitable they can be. Elrico is right I think when he says SOH only forecasts revenues on the deals at hand, that UAE deal should bump up forecasts again, as should the new product range when it comes online, and there’s going to be a few wildcards!
If so I think it’s a case that you need to contact Opti head office to clarify. As I am not the accountant for the business I could not clearly tell you how they run their accounts .
Shandy. Are you trying to say that the information that SOH and elric have discussed is factually incorrect or are you confusing the situation from your end ?
Right James this is my last stab - don't bother answering. I did raise this a couple of months ago and was proved correct. Since then both Elrico and SOH have repeated this mistake, hence my recent post.
Below is a summary of invoices and accounts receivable (money owed).
Accounts receivable are "transactions your business has made for which payment is still due". So invoiced in period but not yet paid. By adding it onto revenue you are double counting. FACT
Sales Invoices and Ledgers
A sales invoice represents revenue that your company has earned. Using the accrual method of accounting, which treats a sale as income even before you have actually been paid for it, a sales invoice is an item to be entered in the revenue section of your ledger. Your total business earnings is a figure that includes the total amount of all of your sales invoices for a given period, as well as any additional income that your company has earned, such as from sale or rental of business property.
Sales Invoices and Accounts Receivable
Your financial accounting should also include a system for keeping track of which sales invoices have been paid by your clients, and which transactions represent revenue that still needs to be collected. Accounts receivable is the accounting term that describes sales or transactions that your business has made for which payment is still due. Keeping track of accounts receivable enables you to efficiently bill delinquent customers, and also provides information about whether cash flow shortfalls stem from low sales volume or customers who are slow to pay.
Shandy. I thought you’ve raised this question before and it was answered for you in depth.
not at all - merely trying to establish an accounting principle.
Revenue can only be claimed once. If an invoice is issued in a time period the date it is paid is irrelevant.
The date it is paid effects the cashflow statement not the P/L.
Why would i undermine the confidence of a share i'm invested in.
Not every post has to be ultra positive.
The H2 numbers were poorly presented - included SBTX share sell income in revenue figures which confused. I'm guessing SOH isn't an accountant
ham cutlet. You said exactly what I felt like saying. Trying to regain some ground and then you get somebody chucking that out. Is that an attempt to drop peoples confidence ? Not the first time that’s been posted either. Some people are beyond belief.
Not this again!!
Is SOH wrong shadypants??
I think he's in a better position than you.
SOH has confirmed this.... Elrico analysis is correct.
It is difficult enough out there without dragging this up everytime we try and claw back some lost ground.
Shandy. You could always PM somebody for their clarification. Maybe one of you is wrong ?
I do enjoy reading Lemming investors but Elrico's analysis below seems wrong.
For H2 recently reported rev was £800k and the cashflow statement showed £514k unpaid invoices. This is standard as a lot of companies have say 90 days payment terms.
HOWEVER revenue and cashflow are not the same - the £514k is already included in the £800k figure so it would appear Elrico is double counting. So the £1.3m figure quoted is not accurate.
Do others agree?
In a trading update in January, he said he expected to meet his £1.2m - £1.3m sales, we should have confirmation of this in April when the FY results are provided to the market. What we are expecting confirmation of c£1.3m sales, confirmation a large proportion of the "debtor" figure of £514k has been paid as per invoice terms - this figure is simply invoiced sales yet to be received as cash in the bank. I know c50% of this sum had been paid by January, so it is likely more if not all would have been paid, giving OptiBiotix a small net cash position, slightly profitable.
I labour the above to demonstrate the infamous hockey stick analogy at FY, not period to period as a lot of investors expected, hence the selloff when H1 2019 figure of £148k sales. £808k H2 plus £514k assumed paid invoices from H2 give us a revenue of £1.3m for FY 2019.
Sales for 3 months of 2020 are c2.5 times the H1 £148K. It is worth noting December is a very quiet period in terms of sales, making the figure even more impressive, more so given the 2.5 times, H1 does not include sales from any of the three product launches in January.
If I assume 3 times £148k for H1 2020, = c£444k with 3 months to be accounted for, then H2 becomes very interesting because we know historically sales/invoices paid are H2 heavy. The bulk of these will be made up from H&B, Alphasigma and Seed health, the latter generating sales of $1m plus PER MONTH - what OptiBiotix's share of royalties is, is anyone's guess. Then we have a raft of smaller sales generated from Galenicum, HLH, Pharmabiota, Kappa, John Morely, CII, 39ytu Capsa Food, Agropur, Cambridge, Sacco, Velinoff, Nutrilinea, etc, etc. Some of these will be entering their first full year, thus still establishing revenue avenues, so don't expect too much from the individual partners.
Hi Nimrod,
Only secondhand but hearing through the grapevine that things for OPTI are looking very good indeed, that's jam today not tomorrow.
General market recovery underway when realisation that although the outlook is not great its not armageddon. Mr. Market can see a distant light at the end of the potentially long tunnel, and China's proven model is that it can be achieved.
For me I'm going to utilise opportunity to take more "go figure" meal replacements and have drawn a "to do " list a mile and a half long, starting with growing plants and fresh veg and a lot of other time intensive but useful tasks. Thats before I start on the household painting and decorating. Misses is trying to draw the line at the resumption of winemaking, as it once got a little "out of hand", with 50 gallons on the go for "myself and friends only"...soon get a few friends. So make "to do" lists even if its a total spring clean room at a time, and keep busy.
as if 25p was the bottom. I started buying small at 40p on the way down and have a fair spread from there to the low end and the last yesterday. Possibly OPTI will actual show some real earnings cash in the next results. A bit more substance rather that the past over optimism.
I don’t think it’s going to be too long until something happens over here. Nice to see the treating today, but it still looks very cheap.
https://retailpharmacymagazine.com.au/managing-aussie-health-what-are-you-weighting-for/
OPTi 40p Sbtx 8p Hopefully see this soon.
..just imagine if Opti-products were found to be an effective cure for C-19!
Have we discovered a vaccine!!!
I can see the trades. The last one was buy at 15:05:48
Toped up yesterday morning at 24.99. Nice movement today - hope for recovery from here :)
and this website has frozen this afternoon again, not seeing trades since 12:30
Seems enough now..I'm topping up. Seen a big sell go through, with any luck its the end of our long term seller. Will hold some back as we might see some short term profit taking.
I don’t think it’s down to the DOW or the FTSE now. It was purely oversold.
It is quick out of the blocks today but I think it will fall back. I hope it doesn't but depends on the DOW later on.
By the way do people experience a freeze of prices on this website in the afternoon?
we know how quickly this stock can move as limited availability. I guarantee there will be more buying today.
It’s very hard to get even a small amount at the moment. This may trend upwards as quickly as it came down.
I saw this this website a week ago and initially dismissed it thinking the slimbiome was a mistranslation. But the YouTube video shows it is a optibiotix registered trademark.
I thought maybe someone of the bulletin boards might understand Thai or know someone that does so I thought I would put it out there!