RE: This week/next week18 Jan 2020 21:34
trend364, you make a very significant point, there will absolutely be a need to raise some cash from somewhere...the seatings at 50p per person to Bigdish will NOT be enough to see them through. Particularly when you take in to consideration that with an average of...lets say, 150 restaurants in the trading update it only generated £11k in income...then take costs, wages, taxes etc off that it equates to less than £100 per week profit....not much more than dole money!
So if you add another 100 restaurants on the app up to today you might get £250 per week...its pitiful!
Don`t forget, it doesn`t matter how many restaurants you have on the app, the only thing that matters is how many punters are sitting on those seats and paying their 50p per person in to the Bigdish coffers. 10,000 punters per week would probably cover costs!
This bounce is welcome in the big scheme of things but don`t be surprised if some serious profit taking takes a bite out of the over exuberant rampers who bought in at 1.5p.....also, all the new locations with `1 restaurant` is just fake hype!!!
This company has not proved anything yet with an uptick in sign ups, the bottom line on the stock market is how much money are they bringing in?
Revenue = Vanity......Profit = Sanity.....and Cash = Reality
They say they are funded until Q3 this year.....so thats when they run out of cash! The normal process would mean that they need to secure funds way before that to stay trading.
The few pounds per week, per restaurant @ 50p per head as revenue to Bigdish is miniscule, and no where near enough to keep the lights on.
Fund raise incoming...but at what price?...don`t get caught on the spike!!!
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