RE: Beats market expectations10 Jun 2025 08:42
Captain
I'm not so sure. They have just under £5m in cash. That is a good runway (with the caveat that cash in bank is not cash that is available). It is just such a piddling little business that, like many SMBs, struggles to get over the £10m mark. Thousands of businesses out there like that - I have a couple of clients with much better growth potential in the same position. I have posted before that businesses change at certain points of revenue - £1,3,5,10,20m are typical hurdles.
For CNSL the compliance costs and regulatory burden are likely in my view to vastly outweigh the benefit of the listing unless they ever plan to sell. Look at yesterday's trades, I spent more on a meal out last week (place was recently given its first star - very good but wine flight could be better). This stock simply isn't going anywhere on current trends. It lacks liquidity and simply isn't worth trading.
The CEO was looking for investors in FY Q3/4 but this clearly hasn't come to anything either.
Fundamentally I see this as a typical UK SMB that would likely do better delisted. We will see. However, the trend is downward. Sell will be back under 3p imo before results if the trend continues.