focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar 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.
It will be interesting to see how Rock Up and Pop Up is contributing to revenue streams. Germany is now fully up and running, post Covid, so we should see an increase in revenues from here.
From Interims:
Operational
o Recovery in brand experience and strong recovery in retail markets as pandemic lockdowns ended in quarter one in the UK
o New and unique, full-service, kiosk retailing programme "Rock Up and Pop Up" launched in UK shopping centres to encourage and enable new retailers into venues
o Launched "Experiential Space" website(www.experientialspace.co.uk), giving promoters enhanced online access to venue information and chat function to allow comparison of sites on offer and facilitate faster bookings
o German business fully operational since April 2022 following the end of Covid-19 restrictions
"With the launch of and investment in Rock Up and Pop Up as well as our new experiential website, www.experientialspace.co.uk, we have developed innovative new services that support our two key revenue streams; Brand Experience and Pop-up Retail, and we are aiming for these to contribute to and stimulate our growth over the coming years. SpaceandPeople has the ability to deliver the most comprehensive portfolio of spaces for brands and retailers to research, launch and showcase their products. By developing new marketing platforms to promote our venues, combined with new retail delivery options, we will continue to expand and dominate this sector."
Don't see why not, previous Trading Update was positive, so expecting share price momentum to continue...
"Trading momentum has continued in early 2023 in both the UK and Germany despite rail strikes and the Board looks forward to continued increases in revenue and profitability for the year."
That's a decent enough holding in a nano cap company and we all start somewhere.
Bring on 150p next week?
No, only 10k shares, not quite in your league Roley!
Are you a big holder Barnacle?
Yep, looking good. A positive update should send the share price towards the £1.50 range.
RSP now 87 - 89
Bid for 5,000 at 87p
Bid for 15,000 at 86.55p
MM will take 25,000 at 85p - 1.26%
Offered in 1,000 at 89p
Next week it is then... Sooner the better with numbers.
The company posted a small loss for 1H so it may have pushed into a profit for the full year - cash certainly went up nicely and that was after paying off a small amount of debt. That is certainly positive.
I would take a move towards break even as great progress and a profit as exceptional progress.
I still feel SAL should have a valuation at least at the 2022 revenue number - so £5.5m or 281.75p per share...
Just read the previous Trading Statement,, and it does mention;
"The Group expects to announce its FY22 results during the week commencing 1 May 2023"
So I guess next week we'll be getting an update. Like you. I'm expecting a positive Q1.
Final results delivered 25th April last year so I would expect them fairly soon.
That said, the trading update was 7th Feb last year whilst much later towards end March this year, so we may see the formal accounts for 2022 in May...
I am looking forward to the guidance and update for 2023 as Q1 looks to have been positive?
Hi Roley, are we expecting a trading update next week?
The bear market has created some hidden gems and I feel that good research will give all investors a real chance of making significant gains as and when the nano cap/micro cap market comes back into fashion.
Where else could you but a company on -
Valuation of £1.58m even after a 20% rise
Cash of £1.9m
Revenues of £5.5m
A board statement that the year has started well
A board statement that 2023 should see revenue growth
Debt being lowered and now sits at £1.5m and £400k below cash
An Enterprise Value (EV) of just £1.18m
EBITDA profitability in 2022 - we will find out soon enough
The market has gone mad and this is a hidden gem and hence I am a significant holder...
yes £1 seems very conservative IMHO. Good finish to the day
Great post shandy…
Cash is king and excellent to see the significant increase in cash…
Solid buying of the shares across the day and an EV greater than £1m is justified…
I do feel a move through the 100p level can happen but only if these results receive the attention they deserve.
a decent update. YE numbers have been met and cash is in a much better position. Also 2023 has started well.
Cash is at a point in time so trade payables and receivables will always have an impact but just in the last 6 months cash has risen from £600k to £1.9m so that's a big positive IMHO.
No profit in mentioned, but I wouldn't base my investment criteria on the current PE. Firstly covid has had a massive impact so when a company moves from loss making back to profit the PE is almost irrelevant in that first year, it is the momentum that is key (yes i know 2021 was profitable but that included covid grants etc).
Also H1 was a £300k loss so even just breaking even for YE says that H2 made £300k. For 2023 just getting to breakeven in H1 would have a massive impact on 2023 PBT. A £300k PBT for 2023 gives us a low single digit PE BTW.
Also look at 2019 numbers as a guide. Revenues are still well below that. If we can get back to that level and report a profit this should surely be valued north of £5m.
Have you got a link to the Zeus report Benedict?
From the zeus note out today, the cash position is flattered by a specific trade creditor position which is expected to unwind shortly.
They understand profit will be about break-even.
Ridiculous that a company can have a sub £1m enterprise valuation whilst delivering £5.5m in revenues and both raising the cash balance and reducing debt.
Guidance is for an increased revenue across 2023 and Q1 has been significantly stronger than last year…
The cash
Very pleased to see the company delivering as per guidance.
Even more pleased to see that cash has risen whilst also paying off around £300k of the term loan.
Solid set of numbers and the increased social media from early Q4 suggests revenue is increasing further.
Disappointed that revenue didn't come in higher. H2 similar to 2021 which was impacted by Covid - was hoping for much higher.
Based on £5.5m revenue Zeus were forecasting £47k profit. That's a PE ratio of about 30.
Expensive and not in the best sector with the cost of living crisis.
needs the standard
t . me /
At the front
*************+UmCfJ0Ajqj0zMjBk
I agree that you would expect the £5.5m to have been hit.
For me £5m would disappoint simply as the Q4 social media and brand video the company put out was excellent.
No doubt the train strikes would have hit, but I agree the shopping centres seemed busy.
I also made an effort to visit a couple of the stands and was pleasantly surprised how well managed they came across.
Germany should also be running at full capacity 2H least year so keen to see how that is faring?
There is another (yes, another) decent sized seller in the market at present following JW dropping his 128,000 shares (over 6%) and also an ex board member selling (may be them selling again)
I have over 5% now and at a valuation of just £1.327m it does seem somewhat cheap unless of course the losses have not stopped?
as they guided £5.5m if it wasn't hit the market would need to be informed, although up to 10% leeway seems to be the norm. So a minimum of £5m must be a given IMHO.
I suspect the train strikes will have had an impact but not sure what % of business this represents. The shopping centre pop ups seems to be the main revenue generator.
For me i want to see cashflow positive for H2 as this is key for a small company.
If there is any suggestion that extra funding is required it could be painful.
I do think this is massively undervalued but the BOD need to show that it can create a small profit and are cash generative.