Bids.. another AIM share.23 Dec 2019 09:53
Very frustrated… a few on here will vouch for the fact that I invested a large amount in the Bids placing earlier this year. I don’t comment much on here but when I do it’s largely positive because all inclination from JD has been that the business has been running smoothly and to plan. Looking back I now feel many of us here have been scammed, Bids has turned out to be just like other AIM businesses. JD sold shares and lied to us in hindsight, they would have known at this time that they were not going to make revenue targets, JD then replied to a group investor request on Linkedin because he felt this would bypass the legal ramifications of an official response in writing. It’s very clear Bids is struggling now.. they aren’t going to make any ‘significant revenues’ that to me means they are going to make next to nothing. We know their ads have been live so this means their margins must be extremely small. Now we come to the RNS it stated “for gross media expenditure up to £10,000,000 per annum for the next two years.” Now anyone in business knows this means that is the total spend advertisers will use within Bids inventory… With these low margins that could be if we are lucky 10% 1million a year, pathetic. There is a real chance this model will not work now.
Now this is where it gets really bad.. the confirmation of trading update RNS..
"Milestone Advertising Trading Agreement" with a global marketing services group, results in no change to its comments about the Company's revenues in 2019 and 2020 contained in its "Trading Update" announcement issued on 18 December 2019”. Typical failing aim behaviour.. they sneak in a 2020 profits warning at the same time!
“At the time the Trading Update was released, the Board had already taken into account the potential impact of this agreement on its 2020 revenues, in anticipation that this agreement would eventually be signed.” – EVEN with this new deal they still aren’t going to make any revenue..
“In addition, the Board confirms that the phrase "gross media expenditure" referred to in the announcement of 19 December 2019 should be regarded, if received, as payments by the agency which will be treated as revenues in Bidstack's financial statements” – deliberately confusing.. trying to essentially trick us into thinking this means 10m revenue.. well it doesn’t