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Utterly absurd that none of the NEDs have dipped hands on pocket nor the newly minted senior hires. Shameful ( and depressing) that the Board is not properly aligned with shareholders in any respect . Newland continues to prove an unmitigated disaster as CEO and the staff there must be wondering what happens next
Which Christmas.....any one who has followed Pinocchio Adams's career will know that he has consistently led shareholders a merry dance for years about when the monies would be in the bank and mine operations starting . There is a faint hope that s/thing will happen this time but his track record of being economical with the truth is truly appalling
I don't disagree at all.....10% discount to NAV ; divi of +5% all based on depressed underlying valuations; look at Hammerson which produced decent results and NAV is £4bn but sp values it c£1.25bn).
FYI there are just under 5 billion shares in issue...yes 5 billion versus exchange market size of a mere 300,000...
Check out the number of shares in issue! if this ever gets to a 1p let alone 2p , there will be a stampede to get out of Admas's worthless paper
And why, pray tell, did Philip Richards of RAB choose to sell now, after supporting Adams all this time? Harry continues to create the impression of activity and advancement as he has done for a decade but where is the progress? No infrastructure, no mine, no product mined, no income from product mined.......and still no financing concluded.... but its fine because Adams continues to mismanage things
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Share price still at 12-month lows and whilst marked up 13% is still below sp level of 4 weeks ago. Time we saw management team investing their own monies (not the non-execs) now as presumably they are out of close period now with this announcement.
Now they have to convince investors that (1) the oft-mentioned transformation to generating profits is upon us (2) there wont be another crucifying fund raise that crushes the life out of existing s/holders (3) no more mishaps from management.
Management team still has a lot to do to restore confidence among investors
Newland provided his usual bs commentary at the results....and one month on from September 7th? Absolutely sod all news.....seems that Newland's management style is based on hope, Wouldnt surprise me if his management committee meetings take place at Guildford Cathedral based on communal prayer and lighting the odd candle in the vain hope that s/o signs a contract that pays us proper money.
Numbers were ok - nothing earth-shattering. It just doesnt feel that they are making the progress that Milverton's rhetroic suggests. And Mr Market looks like he agrees. Generally I see issues around Europe; sales cycles; inflation ; margins etc....There is a fast-growing business in there somewhere but it is struggling to get out. Thewy need to address:
1. Profit Margins: Investing in broadening their suite of products as part of 3 year growth strategy is the right thing to do. BUT at what point do we actually as s/holders actually own shares in a company that is producing decent profit margins: They barely make double-digit margins - and these figs show a drop of 400 basis points! Notwithstanding investment in sales, that is a huge drop. So what is the long run EBITDA margin expectations for this company? Mid-teens seems very low - I can get that from any number of companies with a much lower risk profile. Claire really needs to start explaining about profitability profile.
2.Cashflow: if they cant drive up margins by selling their software at a decent price they are going to be in real difficulty in an inflationary era. And here we see that cash generation has HALVED over 1H - not a good sign...and attributable to cost of new hires etc.....do we have the right pricing point for our products? Is the sales cycle lengthening or shortening...Lots of issues here
2. Territory Contribution: Europe is clearly a major problem, and has been for a while, and it looks like converting sales is causing real problems. That is absorbing costs & management time to fix. Why is this a recurring issue?
2. ARR for term licences - they talk about the increase BUT the biggest jump was in sales of 3rd party products ie not their own, up 400K an increase of 41%, virtually 2x the increase in their own products. I mean what is happening here?
3. Cost reduction programme - taking out £1m of annualised non-revenue generating expenditure, would suggest to me that (1) this should have been done much much sooner and the financial controls are poor OR (2) they are struggling to drive sales and are having to cut costs accordingly.
Lots of unanswered questions. And I worry that change is coming far too slowly here.
Was amused by your comment about nothing happening here till "2027/28/ or even later". Presumably you are discounting the fact that the share price has barely budged in the previous 10 years, apart from cash raises? Huge disconnect between the commercial progress which while painfully slow, has finally gotten us a clutch of OEM customers and contracts, and the share price. It is not as if this company has just been around a short while and still finding its feet. The problem is that management's credibility has taken a huge knock over surprise fund raises, slippages in profitability, and concerns about cash position. Ultimately these are failings of operational management (and not just bad luck).Let's hope Isabelle and the COO can help instill the plc culture needed to change perceptions. IMV, the clock is ticking. If they can't deliver significant meaningful progress over next FY reporting period, they will be vulnerable to an opportunistic bid.
Exactly right. At best RAB sees this as dead money, as they dont believe a single word coming out of Adams's mouth given his appalling track record...at worst, they see another big cash call and the prospect of this thing finally going to the wall, as investors finally wake up to the fact that, after years of being strung along by Pinocchio from his Cypriot sunlounger, Adams has made this uninvestable, and so Adams cant raise fresh equity, and runs out of cash....
The very one...with a long history of stiffing his s/holders whilst pretending he isn't . One of the more slippery characters whose lifestyle has been well funded over the years by s/holders. The sheer amount of share in issue is so minbd boggling it is not surprise that market makers take fright when they see a tsunami od stock heading their way.
S/o is reducing
Newland's appalling track record of shareholder destruction is quite something. None of us who are s/holders (and who have held not traded) has made a single cent of profit in the last decade, and that excludes the constant dilution from fundraising along the way. Newland's PT Barnum show was alive and well at the results: the sp briefly rallied from its lows not because of any positive commercial news but because the cash runway has been pushed out a little more. If, and only if, we have a string of half-decent commercial contracts where the value is disclosed (something that has been consipicous by its absence to date) & d some positive trials news, then may we will recover from the mess he has put us in. But given the terrible track record, how confident are you that Newland can do this?
So here we are again touching 13.5p: where are the board purchases? Where are the inaugural share purchases from our new CSO or CCO, or for that matter Nero and the CFO?
Participation at yet another industry conference; all well and good but after Nero telling us how brilliant this system is for years, it is clear that beyond his imagination, the FDA, and a few small collaborators, the commercial partners at Big Pharma, biotech, & the world of medical research dont know who the hell they are, hence the constant participation in junkets around the world.....
Hard to know if there were leaks ahead of yesterday, or whether it was just a combo of market makers & traders positioning ahead of an uncertain set of results. That said, SCE really does need to up its game in terms of its interactions with the public markets....hopefully the addition of some experienced leaders in CFO and COO will make this a far more professional operation:.
Exhibit One: Website: totally unfit for purpose if it is not up-to-date. CFO and COO appointed early Sept, and still not on the website., day after results! Do the advisers or chairman or CEO ever actually look at it? Who the hell is managing this, given it's the first port of call for investors.
Exhibit Two: communications strategy : they need to become far more professional and savvy in how and with whom they communicate if they want to expand the share register, and build a bigger external profile.
Exhibit Three: share price chart shows a continual left-to-right descent. Markets hate surprises ; management has done a very poor job of managing expectations and with messaging, leading to a significant loss of credibility.
Negatively word an RNS - never happened on my watch I assure you.
If only t'were that simple. Selvey should go, as he has proved as effective as a chocolate teapot and is equally responsible for the mess that Nero has put the company in.