I can assure you they are. The acquisition is Cloud coco... One that Ian Smith and Co are invested in. This is their way of trying to increase value, bring it in to AD4, raise funding to get their exit of of company B, they will then release regular updates for a 12 month period to increase the price as the markets are fickle, and then exit out of AD4.
RE: Glass of Brandy & Revolver Please27 Jun 2019 19:26
Pretty Simple. Rampers cant ramp any more. Bod lied to share holders re raise.... which I was slammed for mentioning for months. AH refuses to give proper growth figures and talks of % growth. Unfortunately comparing year on year, when the previous year was poor, doesnt show amazing growth.
Some are food, proper investors and the markets are not.
Dont worry... give it a few weeks and they the ramp will start again
But when you take all the marketing spend out, GP in the actual recurring revenue will be higher without customer acquisition built in. The benchmark in telco acquisition is the Base GP, not the business GP, because in general thats what people are after.
And before you start comparing this to the likes of Kcom, Its a completely different business model. Toop are a reseller of services, they have no asset, no infrastructure. They are just a reseller of services.
RE: Balance Sheet looking healthier28 May 2019 21:17
AH specifically said at the AGM they were not looking at doing any acquisitions.
Options for them to be acquired. The current base wouldn't meet the valuation of the business.
Telcos like Toople (eg no infrastructure, basic reseller) for acquisition purposes valued at 18 to 36x monthly GP.
£166k pm - GP at 35% - £58,000 £2 Million valuation. Plus cash in bank at what, a million tops?
The big acquirers in this space wont look at it. Daisy, announced a big acquisition fund, but base is new untested and it would have to pay over the odds to get a relative small amount of additional revnue short term. Gamma? No base through them, cant see them looking at it. Chess - Potentially but again, mcap over values the base. Talktalk? Would they buy a reseller/wholesaler, potentially, but 5 to 6 million, for 2 million revenue, hmm
Smaller Options - Onecom or Elite potentially for an RTO, A lot of effort and again the figures dont stack.
Theres no value to any of the bigger telcos in the brand or the name, they want the base and recurring revenue. Likewise Merlin offers little value to an established provider.
Why are you still here Office Kid? You turned up a week ago during the pump.... called all the people who knew what there talking about out. Then, now weve all been proven right, and its been dumped, your telling others to move on.
Makes no sense. Are you invested? Frankly, have you ever been
900 orders... sounds massive. With an ARPU of £25... Average GP of £4. Thats £4k of additional profit per month. They need 1000s of orders a month before they will hit cash generation.
The Million in the bank? What about the 2,2 Million that was in the bank 6 months ago?
The contract value of the "win" might have been £3.5 Million... But thats not the profit. The GP in it will be very low. 10% at most. AH has openly accepted wholesale is very low margin. £3.5 Million sounds huge.... 350k doesnt.
Your looking at the spin of the company when the facts are clear as day. How can a company thats burnt £1 Million in 6 months... survive another 7 months, with only a million left?