Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Good point Smeeno. STC are impartial, where as unilever would ram their own products down peoples' throats. It may we be that their products do the trick, but there would be that question of doubt if the market was restircted to the products of one manufcaturer. It would almost be seen as gimicky. "Sure, i'll take a test and it will ask me to buy Dove. Big whoop, i already buy Dove". An example of what average Mr Cynical would think
In that regard, the results of an STC test cannot be "bought" by a large corporate. If your product does not suit the customers skin then you won't be getting a recommendation, as ultimately STC is aimed at servicing the customer first. Said Mr Cynical would at least feel that STC would be impartial and that the recommendations be broader (even if there was doubt that STC would recommend products for the higher paying brands...)
Certainly looks like STC is on to something big.
Will it become a takeover target sooner rather than later? You'd have to say it would be easier for Unilever to buy STC (less DVRG and all of the MW stuff) than to develop a competitor themselves whilst STC continues to grow?
The question is, what would STC be worth to a unilever? Certainly more than the £20-25m mcap we have at present. I personally would like to see STC grow under DVRG and reap the massive rewards as a shareholder
Sounds like momentum is building. However, STC went live over a year ago, so £1m needs putting into perspective.
However, they have mostly given tests away and it took time to get it off the ground. So a positive that in 15 months they have nurtured a revenue stream that could really take off over the next couple of years. Great work
Current count as of this evening (think i'll stop soon):
Home 30
Fashion 61
Technology 32
Health and beauty 31
Travel 15
Food and drink 14
Sports 6
Entertainment 10
Total 199 merchants
Looks like Rita was telling the truth when she said how close the 200 milestone was. It will probably exceed 200 tomorrow.
A lot of the merchants are household brands, almost all really. And a lot of brands that people will use. The rate of adding them is impressive.
I am not sure how much MODE make per transaction with a given merchant, but they are loading the app with choice.
We really need this app in the hands of the masses. It won't happen until we advertise. Advertising will cost money...
2020 revenue totalled £4m.
Q2 orders for one arm of the business in 2022 is £3m
Unofficial target of £20m+ revenue looks possible. If MW can bring around £10m to the table then its over to STC and labskin to bring in the rest. Certainly possible
The accounts to December 2021 include the 8 months of Ryan Moore's tenure. Evidently this wasn't a success as JR booted him and took back more control to steady the ship in early January.
The results are also 6 months old and covered a period when the only income came from BTC trading fees and about four months of THG pay with MODE.
Since then MODE has established payroll partnerships with Heroes (Feb) and Lano (Apr), and has also launched its affiliate merchant scheme (May). I have been impressed by the calibre of merchants involved.
BTC has also fluctuated a lot over the past 6 months. Fluctuations lead to trading, which leads to income for MODE. BTC was comparatively stable during the year covered by these accounts.
The 6 monthly accounts to 30 June 2022 need to show a major jump in revenues. The foundations are laid and hopefully they can capitalise. As an investor this has been a poor investment to date, but as i don't need the money i can wait out the storm and hope for a brighter future SP wise. The free float is very small here and dilution will be a last resort for JR as he, and other wealthy investors, would stand to lose a lot.
All imo
Whether bitcoin is worth £1m or £1, MODE always make the % commission on the transaction. So a £1k BTC purchase makes MODE, say, £5, regardless of how much BTC the buyer gets.
ARB's turnover, for example, is directly related to the price of BTC. They are the traditional "gold miner". MODE is the trading platform through which the commodity is sold. The middle man slicing off the top. The price of the under lining commodity means naff all to MODE, just like the price of your shares mean naff all to the investment houses when it comes to trading fees.
MODE is the hargreaves lansdown of the bitcoin buying and selling process, not the argo blockchain.
The more buying and selling of BTC the better for MODE
Management charges need to be at arms length and at market value. You cannot use them solely for the purposes of shifting profits from A to B. Transfer pricing rules exist to quash such attempts, especially when it involves other tax juristictions. The management charges are likely to be for the re-imbursement for costs such as rent, light and heat and various admin costs. This doesn't necessarily include money for GB. The various subsidiaries are all operating out of the same premises, so management charges are a way of fairly redistributing cost incurred centrally to the wider group as a whole. Very normal practice
('Ctrl F', 'china resources') "no results found". That does surprise me, but perhaps it shouldn't? Outlook seems very vague too
Agreed ripperg. "Pay by Mode" is restricted to THG (30 odd websites) and that high street clothes retailer (can't recall the name)
The 163+ merchants with BTC cashback are all affiliate members. MODE gets a comission for refering customers to the merchant, and MODE then passes a slice of that onto the customer. You don't pay with Mode in these instances
The SP has also held up despite the BTC crash. ARB is on its knees at present (not that MODE isnt) but the rot seems to have stopped
I bought ARB at 15p in Dec 2020 before the boom to £3+. It's now down 37p! Crazy swings. Hopefully MODE will see an ARB style boom!
Thanks croqman.
No it isnt the same. If MODE pay is used (like with THG) then MODE get a fee for facilitating the payment (more lucrative for MODE as they are the visa/mastercard, so to speak)
I assume MODE get a commission of sorts for business sent the merchants way through the affiliate programe. No where near as lucrative, especially as they need to pass some (most?) of this onto the consumer to make it worth their while using MODE in the first place
Does anyone know if signing up an affiliate merchant means that the merchant has signed off on it? I would like to think yes, although ocado, boots and homebase supposedly u-turned when mode went public about their participation, which suggests to me they didnt know, or at least their participation wasn't legally binding.
163 merchants, almost all household names, is a great start. If these businesses have never heard of mode then how have we managed to get them signed up?
Home 25
Fashion 51
Technology 24
Health and Beauty 30
Travel 13
Food and drink 10
Sports 5
Entertainment 5
Total 163
Up by 10 in four days. All well known companies, no unheard of minor merchants. It's looking good. MODE just need to start advertising and getting the name out there!
I too would like to know. NPV is Net Present Value, but $628 million seems very low, unless it's the "in the ground" resource value? Ie, AMC could expect to receive in the ball park of $628m based on what we have today
(Naturally the war with Ukraine changes a lot)
Happy for clarity
Per my count this afternoon. And not just any merchants, some decent names in there including:
Accessorize
Alibaba
AO
B&Q
Booking.com
BT
Decathlon
Domino's
EE
Furniture Village
Hotel Chocolat
Hotels.com
Lavazza
Levis
National Express
O2
Ryman
Schuh
Disney
Sports direct
Ticketmaster
TK Maxx
And many more household names.
Surely this far exceeds the class of names included in the dreaded ocado, boots and homebase RNS? Yet that RNS crashed the SP. The names above (albeit through affiliate, not MODE pay) are an impressive array. Anyone with a MODE app is likely to use a number of the above regularly in a given month imo
Indeed. Ireland seem to have been very supportive of DVRG to date. Surely this would be the ideal testing ground for water testing/monitoring. I hope DVRG tender for this contract. If they don't i will be asking "why not?". If they do and someone else wins it i will be asking "why was DVRG overlooked?"
EBITDA allows the business to see profit from operations, or a pretty close indication of profit from operations.
Earnings (profit)
Before
Interest (a cost of borrowing)
Tax (assessed on PCTCT)
Depreciation (an apportionment of the cost of capital expenditure over time)
Amortisation (similar to depreciation but relates to intangibles)
EBITDA allows CF to say "look, removing all of the accounting adjustments and borrowing costs shows that the company is profitable. It washes it's face"