RE: Torn but topped up7 Nov 2019 13:57
Heres what his boss said in an rns 5 weeks ago trader 250 !!! Shape up
Donald Stewart, Chairman, said:
On 4 April 2019 we published our audited accounts for 2018. As set out in my Chairman's statement, in the first half of 2019 we have been building the foundations for our future growth. As I said, Bidstack's strategic focus throughout the period has been on the continued development of our software platform alongside our product offering.
During the period we made the strategic decision not to prioritise the acquisition of new games and additional advertising inventory for two reasons. First, this strategy gave our technical development and product teams the space they needed to carry out the significant development work outlined below. Second, it meant that we were not disappointing major video games developers and publishers by having to hold off filling their advertising inventory while necessary development work took place. This approach has had an impact on first half revenues but will yield longer term benefits.
We made extraordinary progress in the first half which has continued since the end of the period. It is also fair to say that the business has matured significantly.
While our H1 strategy has been at the expense of short-term revenues, the Board remains convinced that getting the fundamentals right is the key to future success.
We plan to continue hiring at pace. In particular, there will continue to be sizeable expansion in the technical development team. However, both the sales and supply teams are also expected to grow quickly with additions in the US and Europe, as well as in the UK reflecting where we expect to find advertisers and games publishers. These teams will be key to developing significant future revenues bringing both brands and advertising agencies as well as new games with substantial advertising inventory. Additional growth will also bring additional administration and the Group will need to fill consequent managerial positions.
As I anticipated almost six months ago, the Board continues to expect the Group to be cash flow negative in the second half of 2019 but believes that market expectations for 2019 revenues remain achievable, revenues are expected to grow significantly in 2020 propelling the Group towards material profitability in 2021.
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