Member Info for D14M0ND

“The Board believe” means another placing will be coming then - surely you have seen RNSs before like this?

The word believe means

1) accept that (something) is true, especially without proof

2) think, be of the opinion that, think it likely that, have an idea that, imagine, feel, have a feeling, hold, maintain, suspect, suppose, assume, presume, conjecture, surmise, postulate that, theorize that, conclude, come to the conclusion that, deduce; understand, be given to understand, take it, gather, fancy, guess, dare say

No they are not hereandnow

They are all generated from the company results, the prospectus, the RNSs and the figures AH pointed out last week. All the calculations are purely based on this. The only thing we cannot accurately be precise on is the CPA of £90 as the maximum AH will spend to get £250 GP over 2 years.

I have identified CPA being £90 and £65 and identified the profit and loss per month and shown the company will run out of money pretty quick

I also pointed out in the post

“I didn’t think I needed to as already answered your question”

I was asked to respond to AEM which I politely did s9 couldn’t answer his question any other way.

The company update did not say they needed no additional money or that they had all the money to go to cash positive.

So with your DD K3VMC, please post what the regulated RNS says which is conflicting?

I didn’t think I needed to as already answered but your question was “So are they placing to make the brokers more money or are they placing to get more money for Audioboom?”

I have said numerous times Boom need the money as the $1.6m will run out before Christmas - so BOOM need the money.

I also said about brokers “Their largest income is arranging placings - they cannot survive without them”

So it covers both of them:-
BOOM need the money
Brokers very happy to raise it as they cannot survive without it

Think people have learnt their lesson from expanding the wholesale market on 29th August with the £3.5m contract.

Since then we heard a few times that the GP was low at 10% for which the company want to transfer more of their business to direct retail. So this huge contract which will not benefit the company for 6 months will only generate 10% after that for the £1.2 yearly order, so the GP is only £120k. So not a great contract and not going to help even really start reducing the current losses per year of £1.4m.

These retail customers which I have shown in several different CAC options will be lucky if the CAC is £65.

So these 115 contracts will generate £250 each of GP over 2 years so on average generate GP of £10 per month each with a CAC of £65.

So these will not benefit the company until breakeven until May 2019 - oh yes, just about the time they run out of money AGAIN and losing more than £1.4m because of the CAC. So you do not need the figures as AH has already specified them. Just put 2 and 2 together and you realise this is a POS.

Just keep topping up mazik- you’ll have to until Sculky’s buy in price 🤣

Well 3 people so far thought it was worth it - it was truthful 🤣

AEM - I have already said I plan a trade around 0.5p - totally upfront bud

Do you really think that my spouting off on here makes any difference to the SP - I seriously hope not!!

How many times do you want me to wish you luck K3VMC - looking forward to my comments after the placing

Enjoy 🤣

He didn’t actually say as such but that’s what he implied. I am confident a placing is coming before end of November

mannnan - you know that is a rollover or haven’t you learnt anything?

When the placing happened £225k of the placing shares was rolled over as I pointed out. I also said in 19 days time, they would have to be rolled over again for those that couldn’t afford to pay for them.

At the time I mentioned some may sell today and tomorrow for those that cannot pay for it and don’t want to hold.

Can see the selling pressure building up tomorrow to help Scully achieving his buy in price for his trade and 0.2p I predicted - but I will not buy a single share

You need to know the game in how the city works so good luck LosingLess - you may need it

Take a few screenshots of your posts accusing me of misleading - that may come back to bite you 😄

It’s their own broker so not much point in reading that and absolute rubbish that end bit.

They either believe the BODs or more likely getting ready for their next large lump from BOOM where they organise the next placing. Their largest income is arranging placings - they cannot survive without them

Sorry I divided the figure by 6 not 4

So £3.4m for 4 months gives a cash burn of £850k per month which explains RP’s comments of the cashflow burn has increased over the last few months.

So how long will the £1,24m cash last? End of November? Think a good trade coming around 0.5p

JSW - look at the interims
https://www.investegate.co.uk/audioboom-group-plc--boom-/rns/half-year-report/201807190700050954V/

It clearly explains the revenue of £2,641k and cost of sales being £2,002k giving a gross profit of £639k
The administration costs to support this work is £4,430 giving a cash burn of £3,791k for 6 months which is £631k per month. Some of this cost may be associated to Triton so I look at the figures from the previous year which is compared to.

Compare the same figures to the same half the previous year which is £474k cash outflow

Boom at the end of last May had £640k cash

I will just ignore the £1m loss between payables and receivables for now
£4m after accounts net so £4.64m in cash equivalently at the end of May
£1.24m ($1.6m) cash at the end of September

So cashburn from end of May to end of September is £4.64m - £1.24m which is £3.4m

So £3.4m for 4 months gives a cash burn of £566k per month. If you take the the difference between the receivables and payables you get to £600k per month.

So God knows where you see the cashburn of £270k per month and you are calling me making untruthful statements.you need help JSW. It is your money invested not mind so I am not that bothered. You get diluted for your own ignorance then.

I put $ not £s - for the reason being the new accounts will be in dollars

But if you look at the interims, they cash outflow was just over £400k per month which is around $550k per month.
However, they have been spending more money to get the retail customers in and has RP said, if you look at the figures from the Previous update to this profit warning, they have been spending over £600 per month, $800 per month.

My view they are only spending $600 per month is too low in my view and so the cash will run out a little quicker

May be you read my comments from Thursday - hope it helps

You are missing the point

A placing has to come as they only have $1.6m in the bank and using $600k per month and expected an EBITDA loss of around $5m as per last weeks profits warning. They have no cash to continue much more than a few months

Good luck K3VMC

With $1.6m in cash which is all that is left from the CLNs and last placing and forecasting an EBITDA loss of between $4.5m & $5.5m up to December 31st 2018 - I feel you need to look at this closer

He is not allowed to say anything due to regulations but he did seem to interpret a placing was not coming. How many times does he have to lie just like the bull of acquiring Triton and it looks like you believe him.

I’m looking forward to a trade in the next quarter at a price around 0.5p but good luck

May be you look again and read the profit warning they issued last week together with the last set of results and hopefully you change your mind

Thankyou for your input Todster - a man working in this business that knows both this business that AH is trying to push and as you have said, we have seen exactly the same before. Remember all those mahoosive news coming out and cross correlating to expand this business.

Trouble is though Todster, with the CAC what it probably is, it will never break even in the next 12 months from here.

Let us assume they got 1000 customers a month again to make the pointSo currently they are generating 300 additional customers per month - let me assume on average over the next 12 months Toop win 400 retail customers per month

Each month 1000 customers x £60 is an additional £60k gross margin.

Let us assume the year starts now and look what gross margin will hit this year’s accounts

Month 1 - generates £60k gross profit
Month 2 - £60k less 1000 customers for x £10/mth gross profit (£250/24mths ~ £10/nth) - £60k - £10K = £50k
Month 3 - £40k
Month 4 - £30k
Month 5 - £20k
Month 6 - £10K
Month 7 - level
Month 8 - (£10k)
Month 9 - (£20k)
Month 10 - (£30)
Month 11 - (£40k)
Month 12 - (£50k)

So over the next 12 months, this will generate a £60k gross profit assuming they win 1000 new retail customers per month.

This would then lose £1.5m over the next year which they do not have money for but will breakeven in year 2 by 12000 customers x £125 is £1.5m - so breakeven in year 2

Several problems with this

1) They cannot and will not get these figures as they do not have the monies to generate this marketing ploy through direct digital marketing
2) I personally feel the CAC is above £65
3) I do not believe they are achieving 30% gross profit - may be Todster can confirm his knowledge here
4) I do not believe the average yearly revenue from each customer is £417 per year to achieve this figure quoted by AH.
5) Personally do not think the is a gap in the market where the likes of Daisy are not already there
6) can Merlin cope with this volume? Many reservations as quoted in the Prospectus

Thanks kitkateat - sorry for talking on all your behalves but I thought I was safe to do so.

So 5 out of 5 wouldn’t touch this with a barge pole - so all sorted then BD6Vant

Nice to here from you riddler - as we have tweeted over the last few years about this since the ipo, this has never been able to be considered for an investment - very similar to another DB one - REAT