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Same type of company, just in a slightly different space, same end outcome. Investors screwed and management get away with murder.

They are only down due to the exceptional items, which are the acquisition costs and the change of listing.

I do wonder if the acquisition was expensive and these results are highlighting that

Lumax

Do you still hold Gfinity?

If you are who I think you are from Twitter

Exact same happened on bidstack, legal case was made, nothing happened .

Unfortunately the FCA care very little for this end of the market.

It’s mad how the two stories are almost identical

Warning signs were there. Unfortunately these companies always end badly for the shareholders.

Questions over incompetence or criminal, bidstack ended the latter, not sure on this one yet

Https://open.substack.com/pub/thequalitysmallcapinvestor/p/solid-state-down-55-ytd-what-has?r=2n8gcz&utm_medium=ios

Https://open.substack.com/pub/thequalitysmallcapinvestor/p/xp-factory-interim-results-are-in?r=2n8gcz&utm_medium=ios

All this talk about balance sheet restructuring to support dividends and buybacks seems pie in the sky.

Cashflow still a bit of a concern especially around purchases of property, plant and equipment.

Note 8 highlights that most of this has come from purchases at £3,500mil with only £900k from acquisitions.

That £3.5mil, if that is now a regular annual cost which comes from making sure venues are up to scratch then when do they actually become cashflow positive.

The balance sheet certainly looks worse, with current assets dropping whilst liabilities increase slightly.

How long can the balance sheet sustain growth and negative cashflow. Has to turn positive sooner rather than later.

It’s being promoted to ftse 100, so should gain some extra tracker volumes

“Let Blackrock in”

I’m interested by this comment, surely that is a case of Blackrock buying into Games Workshop through their UK funds.

Not much management can do about that, if Blackrock want to buy and their are shares available then they can buy.

I don’t see any of the management being pushed over by any shareholders and the shareholders have no reason to be pushy.

Said it before and I’ll say it again, the similarities are uncanny, the ending will likely be the same

Risk of cash flows/debt/placings

But on the flip side, a low valuation and turnaround potential

https://open.substack.com/pub/thequalitysmallcapinvestor/p/is-facilities-by-adf-too-cheap?r=2n8gcz&utm_medium=ios

It’s uncanny

Riots seems like a poor reason.

Could probably accept, it’s summer, nice weather, beer gardens, holidays abroad, Olympics, Euros.

But inflation is starting to bite as mortgages roll over onto higher rates we’ve seen it in the economic growth numbers, plus with labour tightening things up in the budget there will be lots of reasons why boom battle bars could be seen as an excessive spend people can cut down on

On the more positive side, students going back for Uni, that’s probably a big target market

I’ve written this although had to rush the end to get it out, otherwise might have been waiting another week.

https://thequalitysmallcapinvestor.substack.com/p/xp-factory-about-to-hit-full-growth

I’m happy for people to tell me what I’ve missed and to be critical of my analysis. Only way I’ll improve and learn more about the company.

Interesting set of results, a few bits that need digging into a bit more to figure out what’s going on (I’ll try and write up properly tomorrow) but a lot of the numbers moving in the right direction.

My main questions are around the move from acquirer to maintaining sites and how the numbers would look if this was 10 years down the line with a fully mature portfolio. Would it be churning out free cash or would most of it be going down on refurbs.

But I’ll take a deep dive tomorrow into the results and see if I can answer my own questions

I think the talk of Beckham needs to stop, it’s irrelevant.

Ultimate guild are in a huge hole and ultimately will get taken out for peanuts. Why would someone pay up when they could pick up the pieces if and when they declare bankruptcy

That’s for Tom orange by the way

I’m not on Twitter anymore but you used to always shoot people down if they disagreed with you on Guild.

An expensive lesson, but hopefully you’ve learnt to always look at both sides of an investment case rather than only yours.