Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
It's a shame that lots of wonderful and pertinent information about how well NCYT appears to be doing is having to be found by members of this BB scouring twitter, websites and all sort of other on line publications.
The mcap makes no sense to me at all as is clearly highlighted above but the company could be doing a lot more to address that if it wanted to with a bit of PR and a few more well timed RNS's. It doesn't appear interested in doing so currently. I don't fully understand why. Maybe it's just too busy making and selling so much product to have the time. Who knows?
Then there's the huge DHSC cloud constantly following the SP like a bad smell that won't go away.
II's are not in here simply due to uncertainty, that's it. They aren't speculators they are investors and they invest on hard fact provided by the company in black and white through official channels. To that end I can't see any II involvement here until the DHSC dispute is settled and we have another set of accounts or at least firm sales figures and revenue streams officially published.
The advantage we have as private investors is the ability to choose to see through void, see that the mcap makes no sense and take advantage of a depressed share price.
It grates though, watching the daily erosion. If feels like death by a thousand cuts. So I try not to look at it knowing that I'm in here until at least the next full set of year end results.
I'm not entirely sure the dispute is all done as I don't believe an NDA trumps a legal requirement to inform the market of price sensitive information.
Whilst it's entirely possible that something informal may have been agreed subject to finalisation I personally feel the DHSC will want to see the results of the Judicial Review later this year (despite the fact it doesn't directly relate to NCYT).
I just have a gut feeling the JR is being used to stall progress and delay payment just that little bit longer.
? This. I'm comfortable with early next year, some solid sales numbers, a new person at the helm and hopefully the DHSC thing put to bed. Whilst instant re rates are nice, they rarely hold and create volatility. Just a nice steady increase through and beyond the year end would be just perfect.
It's not like we can do anything or go anywhere over the next 4 months anyhow.
This should be playing in the background over the original post on this thread:-
https://www.youtube.com/watch?v=OSaNWYHmUvI
Will the momentum continue or gradually fizzle out or rocket with an announcement on the closure on the DHSC contract or a saliva LFT release? Will VanV/ShaunP return in contemplative mood? Will Porky finally admit to being GM and thank shareholders for their contribution towards a golden retirement -- all will be revealed soon...
I think this is one of the only upsides of the DHSC dispute, it's kept takeovers at bay until it's resolved as it would be so material in the valuation of the company.
Once that it resolved all bets are off.
It will end up where it ends up, huge fast re rates and massive increases in SP in short spaces do nothing other than fuel trading and volatility. I'd be more comfortable with a nice single figure % rise on a daily basis. Day in day out.
Settlement of DHSC debacle is the point at which there will be a justified re rate. If for no other reason releasing that amount of cash will allow the company to throw more at future growth. More cashflow = faster growth.
It's nice to have a positive feeling here for change, it's been pretty tense for a few months.
Some sense at last from Soder and some realistic numbers.
I was ripped a new A hole on here earlier this week from openly questioning the insane 85% margin number being banded around.
£5.50 to £7.00 makes absolute sense where we are right now until we have more facts from sales in the months to come.
Yet here we are languishing at an SP that apparently isn't even close to representing the true value of the company.
Why is that?
The market looks at NCYT the same way I currently am. We expect that to change though and it looks like today the tide has turned.
But how much better would they be doing if that was £200m, and what proportion of that £100m has been sucked up rapidly rolling out alternative income streams to cover the non payment.
Thats the view the market takes. It's quite binary and something you only really comprehend if you've lived it or you're a seasoned investor.
It is mad at what's it's currently valued at. However it is very important to understand how damaging poor cashflow can be.
A rapidly growing business can be stifled by poor cashflow to a degree that it compromises the entire business model.
This is the fundmental issue with the DHSC dispute (asides from if they are going to pay at all), is what damage the non payment is doing to the potential growth of the business?
Poor cashflow/non payment can kill an otherwise very healthy business. The market knows this and often over reacts. We are invested here in the belief that this is a sound company with a good product and that the DHSC dispute will be settled in the companies favour. But the simple lack of payment/cashflow causes what appears to be a huge over reaction in SP levels.
I own a company that has a 7 figure turnover. It’s 11 years old this year.
In year 3 we picked up a huge PLC customer, their orders increased our annual turnover 20 times in a little over 8 months. The margins were great, the expenses next to nothing as we were delivering a huge amount of product to one point, in one go. Our production costs were low as were producing so much in one go. I’d love to claim we were skillful in picking this client up, we just happened to be in the right place at the right time with the right product. We lucked into it.
You seeing a parallel here?
After two years it petered out, the product the PLC had that was being supported by our product range simply didn’t sell as they were expecting. Fortunately we had the sense to reinvest in our own business rather than lots of expensive holidays and Lambo’s.
8 years on from the huge customer we’re now approaching 80% of the turnover we had when they were buying, without them. Our business is now a whole lot healthier with lots of smaller customers, but I can tell you this, the margins are nowhere near the same as having one huge customer.
I sleep a whole lot better at night now though worrying if we’re going to get paid on time. In reality my business is probably worth more now as it’s so stable and not reliant so heavily on one income stream. It took a few years to build it back up though.
To that end you can forget 85% profit margins, the costs and expenses of covering multiple end users in a free market with competition sucks that margin in at an alarming rate.
So forgive me if I come across a little pessimistic with NCYT on occasion, but I’ve lived and am living a parallel in my own business that maybe gives me a different perspective than many other people.
The market needs it spelling out writing as a statment of fact. Until that happens it's nothing more than opinion and speculation. Hence we are where we are.
A lot of poeple getting a bit overexcited this morning. Don't get me wrong, I'm happy it's moving in the right direction.
Personally though I prefer to deal in fact rather speculating. That said I'm invested here waiting for the facts.
The market determines what it's worth. Lets see where we are at close today and then in a weeks time.
It is without doubt positive, but it's only part of the picture. The only time this SP will blow instantly is if the RNS drops that says the DHSC has agreed to settle in full or at least less only £20M or so.
Turnover for vanity, profit for sanity.
Today's news was good, but turnover without costs/expenses is only part of the information you need to form a complete picture. It is without doubt good news, what the market doesn't know yet is exactly how good that news is, so we have a cautious increase in SP.
Then of course there's the DHSC ball and chain which is providing a constant downer and not allowing the free movement of the SP with all the good news flowing.
Posted on another BB, makes for a fun read.
https://www.griproom.com/fun/10-signs-your-company-is-about-to-be-acquired?s=08
It was a nice surprise this morning. That's the bonus of being a pessimist/realist. Every now and again you get a really pleasant surprise.
It removes a lot of angst from this afternoons presentation as many underlying questions have been addressed.
It's a shame the DHSC thing still drags on, that's holding the SP back to the tune of at least 100% minimum IMO.
Whilst it's nice to see good revenues, it's only half the information. We're not sure what margins we're operating on now and at what level expenses are running with all the new staffing and marketing. It's still all a positive though, but explains why we're seeing what many would feel is a modest rise today rather than a rocket. It will be interesting to see where this ends today and at what level we finish the week.
It's nice to have a positive feeling after so many glum days.
I have a feeling tomorrows meeting is going to be a bit of a damp squib, jam tomorrow type affair. I do hope it turns out to be more than that though. The willingness to answer the extensive list of well thought out questions discussed on here will be telling.
I think we just have to sit tight until the CEO changes and the DHSC issue is settled. The DHSC will likely use the Judicial Review for reason to simply put everything on hold until that point unless by some miracle the arbitration is finalised.
For me these are now a 6 month hold to see how it all pans out, once you get your mind around that and you're not obsessed with small daily SP movements your sanity can return to normal.
The fundamentals here are too far out of whack with the SP for it to make sense. It's just the sheer volume of unknows supressing it right now.
Here lies the fundamental problem with suppling the Government. You are always potentially subject to them simply deciding not to pay you at any time. Unlike supplying any form of private enterprise where legal proceedings are generally pretty definitive, assuming the company in question has assets, with a Gov you struggle to enforce any such proceedings.
They may simply decide not to pay, what are you then going to do? Issue a winding up order against the DHSC? You can’t it’s not a company you can wind up. Send the bailiffs in? Can’t pay we’ll take it away?
Let’s assume we’re caught up in the Judicial Review (JR), we don’t know if we are or not due to the lack of transparency of the situation specifically with NCYT.
Lets assume the JR outcome is not in the favour of the DHSC, they could simply say, “Hmm, we acknowledge the results of the JR thanks, but we’re still not going to pay”. What do you do then? Sue them? Say you won the case, how do you enforce it? How long will it take?
All the time your outcome is relying on the Government deciding to pay you what you’re owed.
This, in combination with unknown levels of sales going forward, is why we find the share price languishing where it is today. You can sum it all up in one word – unknown. The market has a fear of the unknown outcome.
I’m really hoping that the investor meeting next week sheds some light on NCYT moving forward away from the DHSC fiasco. A clear and different revenue stream will do confidence a world of good until the current mess is untangled.
In the meantime I continue to hold and will add where I can at these depressed prices. I’m not holding my breath for any form of resolution this year though. I’m also hoping that the change at the helm will encourage more communication from the company to the market/shareholders.
The reality is it’s only 20 weeks until the end of the year. In the big scheme of things that’s no time.