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Another month has passed with no financial update.
Scirocco is now two months into this AD deal and no RNS has been released confirming income. I would think first income from the diversified business would be more important than Tanzanian news as it provides company stability.
It's my understanding that Scirocco will net approx £25,000 a month from the AD acquisition. Two months in and I don't know whether to continue to presume Scirocco has now netted £50,000, nor am I able to forecast half & full year numbers without confirmation.
More importantly; if 2020's expenditure matches 2021's, then Scirocco will owe Gneiss circa £425,000. If one breaks that down to income/expenditure. That would mean Scirocco's net income is £25,000 per month and their outgoings to Gneiss alone is £35,000 per month.
I would like Scirocco to provide some clarity and update the market on what is coming in and what is outgoing. As of right now, I really don't know if Scirocco is solvent or not.
It has been stated that revenues will be retained within EAG to fund growth of that business. Nothing will flow to Scirocco from AD for quite some time, but the theory is that no further funding will be required. EAG should be self-funding.
Hi SHS - they are almost certainly solvent. Even our rubbish BOD would not continue to run a business that is insolvent.
I would be surprised if EAG / the asset is cash flow positive. EAG management fees and investment in improvements to the plant will likely extract all of the cash from this asset.
The EAG guys need to deliver more acquisitions to justify their existence. Only…how will they fund them??
As per TR's comments: all income will be reinvented to grow the business and fund further acquisitions.
It is still classed as generated income. I would still like an confirmation of actual income so I can understand the financials. Since the preacquisition presentation, all I have been able to do is guess work with numbers I don't even know are accurate.
I believe there is a reason Scirocco is choosing to not disclose the actual financial details. What ever reason that is, I think its share price destructive to keep investors and the market in the dark about the financials.
I suspect there is nothing good to tell us about the financials. The whole point of the new strategy was to use this EAG as a vehicle to scale (apparently there were 5 deals of various sizes ready to go).
With one very small asset they are unlikely to be generating any excess cash (beyond what is needed to improve the asset, service the debt, and keep the lights on at EAG HQ)
SCIR have essentially got involved in infrastructure ownership. Low fixed income but very capital intensive. It’s a horrible business model for a listed company IMHO.
It makes no sense IMHO
The 9th Dec date was apparently given by Ben from the PR side, Camaro is it. It was stated over in the Telegram forum
Thanks Cash, will get my questions ready then ;)