RE: YGEN14 Nov 2020 08:34
P3T3R Agree with your figures of 20.7% since start of the year but when you look at companies that are well promoted like Greatland, Pantheon, Open Orphan to name a few our figures look very poor. In my opinion Rees needs to get in front of that camera more, if he believes in his company why not boast about it, others do.
Regarding profit, I for one was very surprised to see a deterioration in the EPS this time round, I was quietly confident of at least a break even.
Which moves me on to my next observation, Rees has decided he needs all these extra staff, 11 new vacancies on the YG website with probably between 6 and 10 positions already filled since the Summer, only a few of these are advertised as short term contracts.
My observation here is these positions come with a price, agree Rees needs to speculate to accumulate but these positions are not low salary positions.
I’m thinking on average 50k per position, it costs double to employee someone so £100k x 20 employees = £2 Million on the wage bill minus what income each employee will make the company, it’s usually a around 33% but some of these positions are overheads.
I haven’t looked to closely at the top table ( BOD) yet but promotions have been happening through the year, I am concerned the significant increase in wage bill will hold us back from making a profit this time round.