Member Info for Ant1986

Not another week of Puggley and GOBsh*the!

Move on, indeed. Go and volunteer, it's Saturday FFS.

Think most are positioned by now and we're all awaiting the same news.

Not that it matters, however, the ask has thinned out this morning - not much available.

Fingers crossed it's today, would be a nice end to the week.

"The directors have concluded that the Company has adequate resources to continue its business for the FORESEEABLE FUTURE"

Bless.

Well does it matter or not? You seem to be a bit confused now...

No, it says: "Also post-end of the first half of the year, the Company announced that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, had commenced."

It doesn't insinuate regression, as you infer.

Very determined to see the negative for a shareholder, eh? You cheeky thing, you ;)

I would imagine the net assets are made up of IP from the membrane division as they are largely intangible, judging by the results.

Regardless, the going concern does not include these. It's about the sale of the MONITORING business.

They have said it. Here, let me help you some more.

30th August...

"The Company confirms that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, are ongoing and further updates will be issued as soon as there are any material developments.


A successful sale of the Monitoring Division would result in a significant strengthening of the Group's balance sheet and provide a solid base on which to support a more focused and efficient Membrane Processes Division, in which there is an encouraging pipeline of international development projects."

Today...

"Also post-end of the first half of the year, the Company announced that negotiations for the sale of the assets of Modern Water Inc., the US-based Monitoring Division, had commenced."

There. Easy.

Pugg1ey, what does it say in note 2.2?

Here, let me help...

2.2 Going concern

The directors are required by company law to be satisfied that the Group has adequate resources to continue in business for the foreseeable future. A review has been conducted and the directors have concluded that such resources are available, and that the going concern basis is justified in preparation of the financial statements.
The Group's forecasts prepared by the directors reflect that funding requirements have reduced significantly following the liquidation of Modern Water Services Limited and the restructuring of the Group's Membrane Division and Central function.
The Group's remaining funding requirements will be met from:

· Proceeds from the sale of the assets of the Group's Monitoring Division.
· The £141k raised from a share placing on 3 September 2019
· The £68k cash balance as of 30-June-2019;
· Continued revenue from the restructured Membrane Processes Division

See, nothing to do with £1.3m net assets.

Thanks for your ongoing negativity.

"Following a review, the directors have concluded that the Company has adequate resources to continue its business for the foreseeable future, as set out in Note 2.2 to the results."

You cannot just say that - the advisor must be satisfied this is true.

It reads to me like they are pretty annoyed to be selling a growing monitoring business but believe in the membrane side of the business, which has greater potential. They probably expected Gibraltar to have come through and that would have balanced the book.

I can also see recent partner activity, promoting the membrane technology.

The sale must be close, because as observed, they are running on fumes without the option to raise (at present).

At £1.8m revs (x2) should yield a sale around £3m - I would imagine it's shouldering a lot of the listing and associated admin costs, which if sold privately (MBO?) could easily swing to a healthy profit (already £900k gross profit).

Pretty happy to hold!

To be able to say it's a going concern and reference the sale, they must have material information to have been able to include it.

Sale must be close based on amount raised and focus on membrane biz.

Looking at the shareholder list, IP Group plc and University of Surrey, stand-out to me. They stand out because they are involved in the tech and patents, which relate mostly to the membrane business. I cannot imagine they are passive holders either. If they can reignite that side of the business with the capital raised from the sale we could see a material uplift.

Yup, had £3m in mind since I bought in, should see 3-4p on that news (fairly) and then more if the sale is higher or the membrane biz lands any sales or the story hots up.

Yep, significant changes to what I can buy/sell now. Something happening.

Almost certainly a worked sell.

Nothing has changed on buy/sell side. Ask has dropped daily, if not hourly.

Not too fussed, think the business is sold and we'll be looking at the membrane activty very shortly.

Interestingly, there is still interaction as recent as Monday, between WEC Projects and Modern Water's Sales Director. Sunup are pretty active too. This membrane stuff might not actually be rubbish. Could be a flipping good turnaround story developing here...!

Keep your discipline, long-term it pays more!

MBO - looks a cracker! Sticking here but should do 3p there.