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And that's not counting the extra dilution from the cash raises. So well done the Chuckle Brothers, Bundred & Johnson for prove yet again that a great business can be undone by useless management
Never imagined SCE share price would get this low, bitterly disappointed, undecided whether to average down though, great product but what is happening with management?
Likewise fiah. Was fairly disappointed with the raise at 40p, so the thought of 10p or similar is a shock to the system. The thought I am clinging on to is that despite the poor management and, especially, the poor communications, the future of SCE arguably looks brighter than at any time, as long as they can truly get to grips with the manufacturing issues and that the confidence of customers is not irreparably dented. The order book and pipeline are strong and cash is depleted in part because of the delay in production ramp-up and in part because investment is being made in capacity for that order book and pipeline. Is it time to be greedy when others are fearful? The market cap is currently sub £30m, which is crackers. But then I come back to where I started. I also never foresaw this level of share price in any scenario other than a fundamental issue with the product, such as safety.
Completely agree - changes need to be made and quickly to assure the customer base & shareholders that there is not a systemic problem. That means (1) Replacing the chairman (2) Laser-like focus on operations, systems, people (3) getting finances sorted (4) recalibrating communications and making sure that we never have a repeat of what has been a disastrous string of announcements from Johnson.
SP is in free fall
It seems to be stabilising around 11p now. I'm adding.
I think this has been oversold, volume of shares sold / bought in last few days vs number in issue 9 million vs over 240million in issue . I guess the problem is total uncertainty every time a production update comes out it is way down on previous estimates it was always going to be a problem ramping up production and until targets are set and hit or exceeded this share will be in the doldrums and cash raising is increasingly difficult as the share price drops either from finance houses or existing shareholders. Difficult to know whether to bail or cling on . The board needs to be honest and set realistic sales goals.
All this dumping means that people close to the company are selling as well (id guess). Thats the concern here.
The arrival of Maddock and Easton has (hopefully) ushered in an era of professional management sorely lacking in the core areas of manufacturing ops and finance. But it is not enough, we need a change at the top, and whilst in a larger plc Johnson would be out the door after the multiple failings of last 24 months, it is the Chairman that needs to go as he has failed to manage the CEO, failed to manage the board , and failed in his duty to represent s/holders interests.
The sell-off may well include institutional investors who subscribed at 40p such a short time ago based on the same assurances as the rest of us. They have the resources to simply move on, unlike some of the rest of us!
Fevertreeman
The fact that the Chairman has regularly bought shares suggests he has been naive to the pressures that Johnson has been under, and naive to the likelihood that problems occurring were inevitable..
With the CEO not being much of a share buyer suggests he ( being closer to the issues) has indeed been more aware...
Being almost forced to bring forward expansion plans as a rezult of orders, whilst still needing to focus on the inevitable problems of scale has actually made life harder for themselves, resulting in them , no doubt, taking their eye off the ball with regards the manufacturing detail...the late arrival of an experienced COO made that also...somewhat inevitable..
Firefighting and not sufficiently being able to stand back and manage the development is also a fault of the NEDs whose experience is there to advice of potential problems that lie in the roadway ahead
Completely agree with you. Cunningham jumped ship as you know leaving Maddock to pick up the pieces of what feels like a threadbare financial function. And it appears that was matched by a manufacturing operation geared to showcasing the tech for OEMs but as you suggested certainly not geared for actual volume production,.
So the question is: what actions need to take place to get this back on track. I was gobsmacked by Johnson's insuciant commentary banding about "single points of failure" as if this wasnt anything to worry about, after the furnace issue. And yet I recall a SPOF as being definied as something in manufacturing/process system that, if it fails, will stop the entire system from working.... and there it was in black & white.....wioth that fabulous adjective "insurmoutable" also allowed to pass the Board?advisers scruitny and make the trading update!
So what is your solution?