Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Not going to comment on the management as I've not read enough yet, but seems like pent up orders just need to be delivered - perhaps that capex facility from Liverpool City Region will unlock it? They just got £13m in December so there's no way that's been invested and delivering results yet surely? I'm concerned about the working capital position, but the last couple of statements suggested the cash burn had been arrested, and that once the last furnace is brought online (expected later this year) they will be at £50m T/O - a huge increase from 2023's £8.3m and surely if they even get half way there you'd have thought that would have them cash generative? What's the break even sales level needed - I can't see reference to it but I'd have thought for a business that's lost money every year they'd be acutely aware of what that level was?
Well something has to change because the level of management incompetence is truly shocking given this business has been listed for ages, it has on face of it is a heavyweight set of NEDs (ex Bundred), and we were assured countless times that all was on track even as recently as this month.
Its seems to me that they have simply tried to ramp up capacity too quickly, rather than doing gradually with step changes in revenues. The assumption that it would all be completed without a hitch was naive at best, and the lack of any kind of margin for financial pressures was poor planning and strategy. Not really sure what they can do from here other than raise the monies as at ridiculously low share price and push ahead. In which case changes at the top would just be disruptive for the time being. IMO
Kevin Johnson, CEO said: "We are providing this range of outcomes for the year, in response to shareholder request for "worst case scenarios"
says it all Fevertreeman
No money unless Johnson puts £50K in minimum
Shares also dumped as a raspberry,I suspect, to awarding Options in January ....soon made sure that price wont show up for a while !!!
( Not invested )
Not clear that having shattered investor confidence that Johnson & Maddocks can rely on investor support. The utter chaos of the last few months is directly due to dreadful, dreadful management. That is what needs to change, and fast! Why would anyone in their right mind give cash to Johnson who is clearly not up to the role? And therin lies the issue. A board reshuffle is desperately needed; Johnson needs to step down as CEO and be given another role; the CFO and COO need a proper plc experienced leader to restore their confidence and that of investors. The quickest and best solution has to be to sound out appointing a credible plc executive chair, rather than replace both Bundred and Johnson. The ship needs steadying and quickly.
They were producing small quantities of discs for many years without issues, in scaling up they used larger more energy efficient furnaces, a problem was found with the linings of a furnace as far back as 2022 which was later reported as resolved but there are three different types of furnace for different processes so this could be a new problem. ST say it is a case of perfecting manufacturing with new equipment which they state they are getting on top of with production in March double that of Jan and Feb but they don't claim to of resolved the issues as yet.
I'm brand new here, and might be considering getting in given the price now - seems like they have the contracts they just need to be able to deliver. I don't understand this "scrap" (autocorrect just changed that to "scam" I'm glad I checked) problem they have - does this mean the production process is very wasteful which is eroding margins?
As I write you can buy 500,000 shares online at the 3p bid price!
Looking on the (relatively) optimistic side, perhaps there's a fund dumping as its holding is now so immaterial.
At the current £10m m/cap the risk/reward is certainly better than it's been for a long time for newbies. So it all depends on your view on that risk....or the apparently substantial rewards which could accrue if SCE ever actually their machinery running properly and start delivering on those humungous contracts.
If it was it would have by now. It has a future after cash call. Think 2p will be the call, but can get to 6p quickly.
Things have changed since November as big chunk of cash has been absorbed by their own admossion, however that is not the end of it they have lowered revenue forecast after a week.We will find out soon either way.
* they wouldn't need
" And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6 "
I suspect they would go for a book build , but ..you don't go and say what price you want it at ....such as 6p..... you get told what price investors will pay..... a begging bowl can make few demands
Thye did say in November they would need more cash but if so would look for non-equity....and if so.... they could look for a loan against the contract revenue ...but the interest rate wouldn't be so kind I wouldn't have thought
They also said in November the raise gave them £3m contingency...so..they may have that to fall back on.... but the raise looked very tight against all what they still had to do for phase 2 and 3 kit out
Just do a £2m placing at 2.5p and move on with increasing capacity.
Outlook
We are maintaining sales guidance of £23m for the year ending 31 December 2024. However the scrap problems in particular have absorbed a sizeable amount of working capital and cash. The Board are assessing options to address this short"
How can you say no cash is needed as I am curious to find out about "options that board are assessing"
Newgrange, I'd be interested in if you have any info to support your comments or if you're simply suggesting that you've bought at a much higher level and now wish the company was worth a lot more. I understand you're feelings but anything to back up your comments would be helpful.
Someone else mentuoned a shareholder visit in the last few days. I can't see the company announcing anything formal so suspect anyone can knock on the door and ask for a tour from the comment but if you can expenditure this would be helpful for.the rest of us to understand.
Lots of useful comments on this forum which is great.
For disclosure, I bought in at 6p but sold again as it dropped to 5p but can see that if sales targets are some of the other issues are resolved that this company could move into a stable position, it does feel like more cash will be required though although very little has been said. GLA
And needs to raise it through placing.What I dont understand is why did they let shareprice get this low and not raise it around 6.This company needs minimum 5 millions and that would dilute existing shareholders heavily.
Look at those 4,988 buys.
Someones in
All buys coming in. Value to be had here. GLA
This has been tipped previously by Tom Winnifrith (ADVFN).
DYOR
T/O possible at these levels.
Selling way overdone. Rerate upwards now in progress.
How much below 1p?
Will say a lot if Hargreaves Hale completely sell out ...
https://www.hargreaveaimvcts.co.uk/
What investor visit? Who was visiting the company yesterday?
"The numbers are worst case"
yes..but they cannot afford to be in that situation....as they need every £ to invest in the phase2 completion and phase 3 kit out and working capital .....any fall back will put the timetable behind IMO
The current contracts means they really cant afford any timetable slip ups , and any loss of time on phase 3 opening will hinder new contracts beyond the current ones