Member Info for DD77

Fo cizzle my nizzle

I agree margins should improve with scale, but they need to because they're losing money on each battery at the moment. However, whichever way you look at it, the scale of admin costs are a concern...................greater clarity is required on the make-up of it, because it's such a large figure for a relatively small company. Only then will we be able to gauge future projections with any clarity

So 10% of the share capital is provided in options at 0.83p.

Apparently, they are subject to performance criteria (including Ordinary Share price appreciation)..................anyone like to care to reveal what that criteria might be, as I've not seen it detailed anywhere?

BBN - when you say guilty of reliance on 2022 financial information................if you think admin costs will reduce from increasing levels of business, then that would certainly be an interesting business case. I have only made the assumption that they will continue to be on similar levels, when in fact they could well increase. Greater clarity and transparency is needed on the make-up of this because it is a large cover-all category.

Nice to read your follow-up post on funding requirements. I expect they'll need to raise twice more. Once in the next 6 months, to provide sufficient runway until 24. If the next gen VFB successfully meets its performance objectives from it's pilot applications in H2 23, then I expect Siemen Gamesa will repackage their existing agreement and acquire a stake at a funding round in 24. Likely to be significantly lower than their previous agreed option, but hopefully higher than here! They may even look to takeover in entirety

Don't be so precious BBN, this is forum and people post opinions. I believe the rental market will be small part of the IES business. You have a different opinion and believe otherwise. That's your prerogative. We will see who is right in due course

I am always happy to engage in thoughtful and reasoned debate but I am also not afraid to correct people when they post misleading information, whether deliberately or not. If that ruffles your feathers, so be it, but I would rather give a balanced view on investments. Too many people follow the herd as it is and get their fingers burnt. No doubt many have in this share over the past 2 years

Agricore - not overlooking or under estimating anything.

1 & 2 are moot points because they're losing money on every order as things stand, so payment terms are irrelevant. The more contract wins increase pressure on cash flow, compounding the issue.

3 - dilution will not happen via Siemens Gamesa in the current form. Their price for the warrants is £1.75. No way are they going to take that up. Likely this will be re-packaged as part of a further fundraising at a much reduced price (if they're still interested in taking a stake)

5. - Likely to be a small market

BBN - oh sorry I disrespected you, I hope you managed to sleep last night. Didn't realise you were such a snowflake. It was deliberately misleading of you to omit the £19m annual admin costs in your analysis and only now someone has picked holes in your argument do you finally provide a more reasoned assessment. Your track record is evident

GLA

That's a fair assessment Richard, and one I would concur with. The markets are certainly not attractive for raising equity atm so I imagine that is why they went down the loan route. Hopefully contract flows continue to give impetus to the SP and any future raise is at a much higher price. I will hold off adding for the time being though until it's clearer. This is a fair entry point though, given how much the SP has dropped over the past couple of years

Admin costs are £19m a year, so very convenient of you to emit that BBN!

This isn't about the value of the company, that is an entirely different subject.
This is about working capital and they will require more to deliver their plans for this year, above and beyond the current loan.

Richard - do the numbers on cash burn, which will only increase with more orders as they're losing money on each order currently. It's not rocket science.

Gamechanger will be the next gen VFB

Cashflow will undoubtedly continue to be an issue this year, and concerning that the company is still not operationally profitable, let alone gross profitable. Of course there are grants etc which will assist, but that doesn't overcome the fact that cash burn will only increase with increasing orders (in spite of the upfront payments). So I raise will likely be forthcoming this year, before 2024 should see more normalised trading and shareholder value realisation. I have a position here, but am holding out adding until clarity on funding is revealed.

Otherwise, a very positive RNS, and pleasing to hear that the next-generation VFB will generate significantly increased margins, which are critical to IES success

Some interesting snippets:

· When locating energy and minerals, Getech may selectively obtain a carried/low-cost interest at the early stages of an asset's life cycle, in lieu of revenue, thereby building an asset base to create long term shareholder value. Getech will retain multiple options to monetise such positions with the aim to maximise value and minimise capital risk.

o To accelerate value creation and reduce Getech's direct costs in establishing green hydrogen transportation hubs, the Company is advancing discussions with strategic investment partners and progressing significant grant funding opportunities.

For longer term value creation, Getech is also monetising its unique data, software and expertise through early-stage asset opportunities. Shoreham and Inverness are the prime examples of creating long term shareholder value. As its asset operations mature, Getech's Board envisages a path to spinning entities out - establishing their own boards, capital structures and strategic pathways.

I like the part about having skin in the game for early stages of an asset lifecycle, creating a long term asset base to monetise. That's smart. Also, the spinning out of the H2 opportunities, and strategic investment discussions - this minimises risk and cash flow expenditure. All reassuring from a shareholder perspective.

A very good and detailed RNS, which should put people's minds at ease. Looking very good for the long term, expect a re-rate from here.

It’s definitely drifted downwards but I’m considering topping up. A director has recently added (albeit a small amount) and they’ve announced a recruitment drive so I don’t have any major concerns here. It’s always a slow burn with pharma

How am I trying to sabotage individuals or groups? What a bizarre assertion.

And if you don’t believe me on my slicing, DM me on Twitter and I’ll send you a screenshot. HTH

Feel free to disagree yeboha, this is a forum based on opinions after all. Myles probably does know more about Avacta than most, as he’s thoroughly researched but he knows no more about what is currently going on than the rest of us.

People have short memories, he was actively ramping this company during peak covid times 2 years ago. I’ve been invested in Avacta for over 12 years now and firmly believe in the company but that didn’t stop me slicing 3 times at £2.70, £2.56 and £2.38 in March-April 21. A wise decision you might say, I have since reinvested some of this back in at under half those values. Myles claimed he never did slice but he would wouldn’t he because he’s still got a large investment in here and he needs to be seen to protect it and not give off the impression he’s cutting. We’ll never know

Much like the rest of us Myles has lots of failures as well - anyone in SAE will remember only too well and he was in there heavily

McNulty, Tom the bomb (ridiculous username) know no more than the rest of us………..they’re merely speculating to protect their positions. I’m not saying they are wrong in their assumptions but people put far too much authority on random PIs on social media. It’s dangerous and misleading

Disagree, I would reckon it’s a small proportion of potential buyers of NFTs who would be put off by this. Most people on the street don’t even know what NFTs are. The people buying NFTs are most likely to be savvy with crypto

Looks like they paid over the odds to establish an early position in this market which they believe to be strategically important and have strong growth potential. The company lost £2.1m last year and the acquisition takes £3m out the balance sheet so I would like to see further clarity on cash flow before I add further

It really is flying atm (excuse the pun) but then the whole market is. This will turn at some point, there’s a lot of positive sentiment in the market atm but that overlooks the general economic crisis. Perhaps the worst is over with but there will always be a pullback at some stage. My target is 3200 which would double my money. I only wish I put more in here at the time, kicking myself now

Who's catching the falling knife?