Member Info for GLR1990

Good Luck H+M, CB et al

I have been here for 2 years+ now, not been an easy ride but ultimately in the time I have been here the company has made progress

The hope is around the developments in 2019, the new product in Lokies and the legislation / developments along the silk road and primarily in Russia with the ICCTT

Zero motorcycles seem to have smashed expectations, although with only one model (SRF) the initial volumes are likely to be somewhat low, the potential here is that they use us for newer, upcoming models - even 10K units a year would add a decent amount to the bottom line

Then we have Bosch, who to, once sales of the TDL 140 take off (Surely they have to?) then again, a new revenue stream begins

There is also link ups with Contguard and AXA (and more recently, Allianz) it doesn't get much bigger than that, we also have a tie up with Tetis from Expeditors / Cargo Signal - so the names are truly getting better - would like to see the margins improve in H2 2019 to more than 40/41%

We will find out soon enough, GLA - I will personally be focusing on H2 rather than full year, can add Cropx to that list as well as they only completed funding in August 2019

Was just about to ask the same question Roth

ECSC doesn't look too bad compared to FLX
Similar revenues (2.6m H1 vs 5.2m Full Year FLX)
Ebitda H1 loss dramatically less vs FLX full year, although both have quite large operating losses, with FLX potentially double the Y/E of ECSC
FLX certainly has more cash, 0.45m to likely over 2m for FLX
Still, it would appear ECSC is doing more in terms of return on investment than FLX is, improving revenue and margins with less cash than what FLX use
Odd how both companies posted a very strong July (2019 for ECSC and 2018 for FLX)
Haven't checked debt though, that could be a costly one for ECSC, FLX being debt free also a bonus

Of course the investment case changes again in December on results, good luck to FLX hopefully there is some good news to accompany the result, a new contract possibly

From another placing
Wasn't the 4m supposed to be enough to get them to profitability?

Still got potential if the Solarwinds partnership contributes significantly, results are not too far away now so the investment case will once again change

Good luck to all invested

Just seen the RNS today from the 11th

Falanx Group Limited (AIM: FLX), the global cyber security and intelligence services provider, announces that its interim results for the six months ended 30 September 2019 will be released on 3 December 2019. These will show revenue growth of approximately 20% as compared with the first six months of the prior period.

Judging by the markets reaction I am presuming 20% growth on H1 2018 does not actually show progress when compared to H2 2018 - So comparing six month periods it is actually down vs H2 2018 - unless historically they have a very strong H2

Seems like a lot of work to be done again to save FLX, the interest will be around the cash position, as said before a 4m war chest for anything less than 'transformational growth' is going to be a massive disappointment for the market

delayed payments/ delayed deliveries - sorry was bundling them together, most of the deals are staged e.g. up front payment, deliver X amount, another payment, deliver final amount (so hopefully, you never end up in that latter situation)

So yes 200K was delivered in 2018, with the remaining 900K to be delivered in 2019, as RNS'd a significant portion of the remaining money was received in H1 2019 hence why my focus would solely be on H2 2019 - also for the reasons listed in my previous post regarding the timing of the release of Lokies, the TDL 140, Zero Production (they obviously had pre-orders though, so you could say from March 2019 for that) and other interesting developments such as CropX funding in the Summer - if they hit 3.7m for H2, then a decent TU with an optmistic outlook for 2020 regarding these partners could get the market seriously interested again

not investment advice do your own research etc.

Also H2 includes (hopeully)
- Bosch TDL release (june)
- Cargo Signal IAG link
- Contguard AXA (April)
- Lokies (June)
- Zero MC full 6 months (pre orders until may 2019)
- Shiptek / Union Bank Tie Up (XLOG)

May be others, but quite a lot happened between April and July - hence my optimism for H2

Hi HM no problem, no advice intended of course

As for 7.1m, not quite - at the end of 2017 there was I believe delayed payments (cropX) and a very strong Q1 (1.5m USD) likely from these delayed payments, so although a target of 7.1m seems fair, historically there has always been a deal or two that never quite landed in the financial year so on a VS 2018 basis it is not a fair reflection to include the NA contract in 2018 figures IMO of course

IMO it is best to focus on H2, I doubt any of the NA deal will land in H2 as I believe most of it if not all landed in H1, therefore a 3.7m H2 without this deal should bode very well, and put them on target for that game changing 7-8m range+ for the FY 2020 (and hopefully much more of course)

HM you are spot on, the tech will not last forever and a large contract (or cash flow) certainly assists in accelerating RnD which is an ongoing priority for every tech company

The positives are as follows:-
- Quality clients, why is this important? Simply put, so you can be sure you will be paid and on time - also deep pockets
- Sales team, as mentioned Cargo Signal and Bosch certainly help boost STARCOM sales efforts and reduce money/time spent marketing

Negatives:-
- Very slow increase in revenue, why?
- Tech that can become outdated / lots of new competition

That's why YES I will be happy with 6.7m as I believe only Zero has really contributed to the bottom line this annum, whereas next year we (fingers crossed, it could be near the end of this year) more from CropX, Bosch, Cargo Signal etc. and the other partners

There could certainly be a huge acceleration in growth here, with the referrals and references they now have (before it was unknown companies, now it really is the best of the best) but the bottom line is the time to act was April 2019 when we raised 650K - only in January will everybody see if this has truly paid off

I aim for 6.7m as that is forecasted, however the market would love 7m+ - because there is certainly a very good investment case for 2020, but it needs backing up with a solid 2019 first

The operating loss for H1 was still roughly the same as the OL for H1 2018, however as I pointed out at the time there was around a $170K swing in exchange rate differences etc. so the actual figure, had we been fortunate with exchange rates would have been around $300K - when cash is tight, this is something to monitor, USD vs Shekel has been coming down in H2 so I expect this to be managed somewhat further

They've also cut salaries for H2 as they clearly believe this is a period of growth, which should again take this down further, even 200K off the bottom line, should ensure STARCOM do not need to place at least in 2019 - by that time we get the results for H2/Full Year and we know more - the risk here is placing before results, if they place after results, it could be for a number of reasons, for a big order or possibly more positive, with II's like FLX did back in December 2018 at no discount to the SP

If the higher margin products continue to sell and they do bring in more revenue in H2 than H1 (target 3.7m for H2 giving a 6.7m year total) then again, this operating loss comes down and the EBITDA goes up

Personally as a LTH from 2017 here I just want to see top line growth, at least 6.7m IMO but ideally more than 7m because that shows a real acceleration, that will also be two full years of growth back to back, with more quality clients and better products in the bag, this should give outside investors confidence the company has fully turned that corner and is on an upwards trajectory

Of course a large one off order does all of this for you, but ultimately you want multiple revenue streams contributing to the bottom line, rather than just relying on one (and possibly having to find cash to fulfil it)

My Two Cents :)

Agree RM very frustrating to see the SP down here, but the MCAP of the company is now so low that any positivity should send it northwards pretty quickly
For anyone concerned about the STAR sales (and teams for that matter) we now have Cargo Signal (Tetis) and Bosch (Kylos) and Zero MC (Helios TT) selling the products

Are Solarwinds specifically mentioning FLX?

Its THE most important step for Bosch to start making sales
The whole purpose of the TDL 140 was to be the core device for the nexeed track and trace platform, a product that can operate all over the world, against any transportation method, Air, Land, Sea and Rail

Until today, the TDL 140 could not fulfil that goal - now via SwissAG (and likely Lufthansa to follow, as SwissAG are a subsidiary of Luftthansa) bosch can now fit these products to packages that require full visability across the supply chain, this is what will bring in the bigger plays like K+N etc.

Absolutely fantastic news, IAG are the operators of both British Airways and Air Lingus and have a fleet of over 400 aircraft
A great endorsement for Kylos and another fantastic development

Anticipated growth in 2018 from one off contracts, and again in 2019 from our partners - I may have jumped the gun and got excited over this share a little too early, but now IMO is the time as these partnerships mature into significant revenue contributors for years to come

NEW2019: Lokies - Enough said we have seen the Russian Legislation, the CCTT approval and the requirement for electronic seals, not to mention its a market leading product so will be required globally

NEW2019: TDL 140 - Again, new revenue stream by the one and only Bosch GMBH - does this really need explaining? The product again is market leading, we can also use this as an endorsement

NEW2019: ZERO SRF - Helios TT and over the air upgrades/remote monitoring abilities in the Electric Motorcycle of 2019

Others to note:-
ICL
Cubemonk
WIMC

Investments To Come:-

NEW2019 - Shiptek/XLOG moves into other territories backed by Union Bank (UBX) Tetis customer

NEW2019 - Long term strategic customer CROPX funding raising over 10m USD moving to a HaaS model which targets getting the products in the ground faster, can only bode well for Starcom - huge growth here if they hit their targets for 2020+

This company already hits 6m REV per annum and has just achieved breakeven at EBITDA level, it doesn't take a genius to forecast, after what has happened in 2019 - that they have a very, very good chance of going much further in H2 2019 and 2020+

Undervalued beyond belief

It's not even worth commenting on
Completely nothing news

CropX funding, XLOG moving into new markets , Lokies full release and the TDL 140 now appearing on Global retailer websites (Mouser, Ledico etc.)

Zero MC releasing a new 2020 range

All of our strategic partners are having a bumper 2019 - the wealth should filter down in due course

Morning All

Apologies if this is obvious, the gross profit is excellent but why are the expenses so high? Is it a case of short term pain long term gain?

I decided to take a look at the 2018 results to see where the company had come from, as the 2019 results did look better than I expected, however...

Had you invested in 2018 on the back of those results, here is what was forecasted

· Monthly recurring revenue at the end of July 2018 has increased to £0.24m

So the recurring revenue was 0.24m in July 2018, but in the 2019 results they state that it is still 0.24m? which means this has not increased at all since July 2018?

· Recent acquisitions combined with contract wins have approximately doubled proforma revenues to £6m, placing the business in a strong position to exploit growth

But revenues showed in the 2019 results, that this figure was not met - 5.4m in revenue was achieved, so why the drop if in July 2018 it was estimated 6m? This doesn't make sense...

· EBITDA Profitability in July 2018 following strong deliveries

EBITDA loss for 2019 1.2m - how did it go so wrong from July 2018? Maybe they should not have informed the market July was so strong and waited a few months to see if this trend continued, as it clearly now looks like a massive anomaly

So even though the results look better than 2018, actually the company appears to have regressed from July 2018 to the point it is at today, they forecasted way more than they delivered, and in my humble opinion, massively over-estimated what they would achieve, almost dangerously over-estimated because if you read that back in 2018, especially the July comments, you would have likely been easily led into investing thinking the company had turned a corner

They have also burned 1.6m of cash in less than 8 months, yet still not hit any of their targets from 2018 Results

The Monthly revenue is the strange one, it has not increased at all since July 2018, even with a 4m GBP investment, if I am correct?

Sorry I agree Fairview there is likely something up with the audit - but as an investor I would not be happy with how this has been handed, no comms, updates, just left with a sinking SP (it was 2.1p the other week!) and we all thought 1.8p was the pre-results gamble, now you can't even sell above 1.3p

One can only conclude, that they simply do not know when the results will be released - which then raises the question as you point out, just how serious is this issue? It may be nothing and everything may be OK - but the bottom line is this situation has been handled in a manner which has tanked the SP by nearly 50% - if not more

After watching FLX for 12 months, many here will know I was looking to take a position in June (what I thought was close to pre-results) - my concern was 1. Of course the revenue and losses from the previous balance sheet 2. the lack of updates on solarwinds/growth from a truly significant cash injection 3. Part of 2/ the lack of comms

Then, after paying closer attention, we are left here on SEPTEMBER 16TH almost three months later without any indication of results, and zero communication as to why the results are delayed - apart from the odd rumour to do with auditors, well it doesn't wash with me there have been many companies this year forced to change brokers/auditors and it resulted in a short delay, certainly not months