Management Incompetence15 May 2023 17:35
I can’t understand what’s going on here.
The Indian businesses account for 90%+ of Group revenue and the vast majority of its EBITDA and positive cash generation. Yet all the strategic focus is on an insurtech business which made £0.5m revenue and lost £0.4m at EBITDA last year. Parametric insurance isn’t new and the market is now awash with competitors and unfortunately the days of valuations being based on revenue multiples are long gone. Whilst there is an acknowledged and real partner concentration issue in India with tight margins, at least the margins are positive, and the Indian market still represents a massive growth opportunity overall. Why isn’t the focus here on growing and diversifying those businesses that already have scale and which generate £150m+ revenue with £8m+ EBITDA and growing positive cash flows?
If, as the Board has stated, the focus for future value creation is Blink, then the Group should have a cost structure which reflects that. The current cost structure is far too heavy - and inevitably bloated due to listing / Plc costs. The CEO took over £400k in short term remuneration last year - plus share options now worth another £400k with no vesting / performance criteria. Over £800k in total remuneration is FTSE250 money, and not at all appropriate for an AIM listed micro-cap valued at less than £20m whose main focus business is only generating £500k in top line revenue and loses £400k at EBITDA.
Not sure what it’s going to take to get the major shareholders to wake up and realise that yet another bunch of overpaid and incompetent Board and management are fleecing the company. Completely crazy, but at the same time very frustrating for smaller shareholders who have zero say, who are not represented by a majority non-independent Board, and whose only error was buying in to the BS in the first place. Further change is long overdue before the money runs out.
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