Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
Https://www.investormeetcompany.com/investor/meeting/investor-presentation-434
Interesting Investor Meet presentation from the company last week.
Some takeaways if you missed it:
Management think that a £6-£7 share price is achievable in the medium to long term (2-3 years) resulting from a £30m valuation of Blink and a £30m valuation of Indian assets. They think that Blink’s revenues could get to £6m pa which, at a 50% EBITDA margin, assumes a revenue multiple valuation of 5x and an EBITDA multiple valuation of 10x. They obviously don’t see much value or growth potential in the Indian assets as they currently generate an annual EBITDA of c. £8m - £10m and this future valuation would seem to reflect an expectation of further margin erosion.
Continued management focus on the Turkish market seems like a waste of time. Economic and political uncertainty causing such an adverse FX environment and high double digit inflation continues to wipe out any favourable local business performance. The current EBITDA contribution could be lost in a rounding error.
Exiting from Globiva, which at present management deem to be a ‘distraction’, could be a good source of value for shareholders in the medium to long term. BPO business has tangible value based on solid industry benchmarks and the business is managed separately from the main Group which would make an exit a relatively straightforward commercial transaction. The Board should be keeping this under constant review as, relative to current market cap, this is material.
The legacy unwind and close down seems to be on track which is good news from a cost control perspective, as is progress on the IT platforms.
Management have been incentivised based on some fairly aggressive share price targets. If you park the excessive base remuneration for management, including the current options-based STIP which has no performance criteria attached, then the achievement of even the entry level to the incentive would see a decent return for shareholders. Again, you need to ignore the fact that the share price has more than halved in the last 18 months……but to get anywhere near the £6-£7 mark again would be very welcome. However, it's got a long way to go from where we are now.
Https://www.insurtechinsights.com/blink-parametric-to-double-workforce-headcount-in-cork-by-2025/
Significant investment in Blink announced yesterday - surprised it hasn't been issued as an RNS as it seems to be a fairly big deal from looking at the assembled dignitaries - surely the second half of this year will be the turning point for Blink from a financial contribution perspective........even insurtechs have to make money at some point!!
Agree with everything that HillparkTC and rnlcat say.
- ludicrous CEO pay
- ineffective Board
- value in Blink but under exploited
- not enough focus on India and realising some value
However, what we have seen in recent days; effectively Phoenix selling 10% to Schroders, should give us some crumbs of comfort that a quality, blue-chip fund manager sees some value here. Phoenix have clearly had enough after 8 years, and who can blame them? Besides, they've got plenty of issues with Dignity to sort out and probably can't be bothered any more. It doesn't create any additional liquidity in the short term, which is what this stock needs desperately, certainly in the medium-long term, but it's the biggest change of ownership for 8 years which must signal something positive.