Member Info for bergo

"Total comprehensive profit for the year attributable to equity holders was £7.82m loss (2019 restated: loss of £1.94m). This increase in profitability from the previous year of approximately £9.76m is due to the movement in realised and unrealised profits"
Loss or increase in profitability?

Anyone know where we can find anything about revenue or cash burn?

Always feels a little better when you go into the weekend with a strong green day! Technical move, but surely can't be too much longer now! :D

If last year's timing is anything to go by we should be getting an update on Leap Gaming's 2020/21 performance next week. With SP well below NAV and factoring in a Leap smashing it YoY this should re-rate. Then you have the Leap IPO in Q3!
FYI - Gaming in general has grown double digits globally, but virtual has similar soft gaming products have outperformed. Leap are in this sweet spot, as operators shift to more experiential, engaging propositions. Coupled with the fact, Leap have continued to secure top gaming partnerships throughout the year, you have to be very bullish on the next update :D

Divergences have been building on the daily MACD and RSI (more MACD) for a number of weeks now. Coupled with this week's perfect doji, low volume and coming to the apex of a potential wedge patter sets up a VERY interesting week. All eyes on whether we see a reversal or not.

Quite a bit tbf.
Price recognises future growth.
Pathway to 50 sites
Plus whole digital offering
Plus US and European franchising
to name a few

Not sure where people are getting 4M cash reserves the past week?
Per 30 Sept 2020 Financial Report
"With the benefit of the Group’s strong cash position, which at the date of this report is approximately £3.955m, the intention is that in-house drilling activity will be sustained for a long period and the Directors believe this programme has the potential to generate transformational results for the Group. We therefore look to the future with great optimism.".

....6 months have passed since the cash reserves were 4M

Yep fair enough. Been scrolling through their RNS and they keep referring to bolstering capital position. Deferred tax likely to be paid quarterly but that's still c.11M per quarter. I agree, once the capital position is out of the way, a lot more people will get involved.

I'm a holder, but was wondering is anyone thinking a raise will be coming soon? I know there working capital position is improving, but the deferred tax payments are kicking in end of the month?

Yep, me too. Got to look past the placing and see it for what it is. Shame about the c.30% discount but, does provide ability to average down I suppose. For me, as you've both pointed out, this is a great recovery play, a great pivot into the US space and on paper, what looks like another smart acquisition. Time will tell, but I happy hold (and top up) for me. GLA DYOR

GSmiley - agree
-I have 6 years exposure in betting and know how important the affiliate network is in driving acquisition
-Most deals with operators are built on either CPA (cost per acquisition) or revenue share agreements (I assume this is the same in the US), with rev share deals often ranging between 15-40%
-In a nascent, but growing market, acquisition numbers are disproportionately higher in early years. On a CPA deal, this means large immediate payouts early on. On rev share deals, this means as the size of the base grows the rev share grows.
-Both structures would be very positive for XLM - CPA would mean significant cash inflow over the next few years, whereas rev share would imply XLM revenues would grow in line with the growth of the market (assuming content is good). With the US market expected to grow to $20B (Betting), $20B (gaming) - this is very positive
-Furthermore, good affiliates are those with great content - just look at the website of their recent acquistion - it's very good
Just thought I'd share a bit here for everyone :D

Looking into financials a bit further:
EBITDA est. '20 = 11.5M on revenue of 54.5M (margin: 21.1%)

For '21, incremental EBITDA would include both acquisitions (est)
1. CBWG: first 2 months of '21 revenues = $2.7M x 6 = $16.2 * 20% margin = $3.24M EBITDA
2. SBD: '20 revenues of $13.6M and EBITDA of $5.6M
-Take 59% (1-41% unregulated exposure) = $3.3M
-Add c.20% growth in wider market = $4M EBITDA
3. General improvement in XLM revenues (Google/Casino, US growth: more states, etc) of 20%
-EBTIDA $11.5M + 20% = $13.8M
Very crude, and I think this is conservative, but EBITDA could at least double for '21 imo
= $13.8M + $3.24 + $4M = $21.04M vs $11.05M in '20

Pretty happy with that deal. With the US market expected to grow to $20B over the next 10 years, and affiliate's been a key acquisition driver for operators, you can see SBD generating a very healthy growth in revenues. Affiliates have operating leverage too - the larger the pie, the more attractive margins become.

Very quick assessment on deal value.
-$7M EBITDA for YE Sept-20
-41% on unregulated
-$2.9M on regulated and growing
-Deal worth = $26M
-Multiple = 9x
For a fast, growing company, I see this as a very good multiple to acquire such a strong brand in the US market...we will see

The price should be 17.5p I believe, not 24p per LSE, but that is typically of LSE not being completely correct

John Story's placing shares? Exact match in terms of no. Of shares

Agree
CEO "we have brought forward three years change in one to become a leaner, faster and more digital business."
"Growth of 47.9% and strong initial return on investment from Ocado Retail"
Also, 91M of transformational (Strategic programmes - Organisation) costs, up 81m YoY- a year of significant change, thousands of redundancies (i.e. cost) setting the platform for future growth!

Revenue beat vs. Reuters estimate: Actual H1 revenue of £4.099 billion
"M&S is expected to report an 18% decline in revenue in H1 of the financial year to £3.99 billion from the £4.86 billion reported the year before, according to a consensus compiled by Reuters."

It is a normal procedure for companies to recognise abnormal changes in the share price with an RNS