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Apologies for being generous.... You normally complain Im negative..

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.

I was being generous, I assume you know what GP stands for...

From Results....

Other financial metrics also showing growth

· Gross profit increased in GBP terms by 28% to £203,624 (FY17: £159,305)

· Overall gross margin improved by 1.1 percentage points to 13.5% (Increased to 7 on like for like 6 months so this could be 20%)

· Retail margin up from 16.5% to 21.7%, driven by improved gross margins on Broadband and Mobile

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.

Hmmm

We don't need money... we don't need money.

Agh, lets renegotiate the debt... the raise money anyway.

It does however solve the cash flow issue for now. Probably covers them off until the end of the year now.

Buying Opportunity if it drops?

Says it all.

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?

You two love birds finished.... ;-)

Great, thats what they states. But look at the numbers.
First 6 months of the year - turn over £1 Million
Loses 0.8 Million

Cash in bank 1.1 Million.

Whats going to change so significantly in the next 6 months to turn that around?? Nothing

If they dont need funds, why get approval at the AGM to issue more shares?

But that was 10 months ago? They also confirmed the first billing runs had been completed. It still makes no sense as to why. I think long term they will say it hasnt produced what was planned

Agreed, I said this a while ago, it will increase from 0 gradually.

But..... if your a telecoms reseller, generating that sort of revenue. Why would you change suppliers to Toople, when in effect your bigger than them? It doesn't make sense. Gamma and Daisy would both offer big incentives to bring those resellers on board. Gamma for example pay £40 per hosted seat or SIP trunk if migrated from one supplier to them. Toople cant compete on those levels. It doesnt have the money.

Greggs Bakery wouldnt go to Jans corner shop for pasties... Its the same logic

Im still invested, but took profit on a percentage last week.

I got in sub 0.3, which I don't see it going below.

I don't at the moment see value at where its at. The company will clearly need more cash in the next 12 months AND it already has the approval from the AGM to issue additional shares to do that raise. Even with that dilution, Id still be sat in profit now (as its circa 20%) but if you invested last week, then you probably wont be.

Im not saying the company isn't heading in the right direction, BUT the scale it needs to drive a cost neutral or positive position, wont happen on the cash they have. To spend 50 to 75k on digital marketing, you need to be making that and more. At a general ARPU of £25 with low margins. It wont happen without several additional raises.

That or they cut their spend, and will probably hit a neutral position, but they will have no growth

If Revenue is higher than expenditure, Please explain the RNS which states
"Our operating loss was £0.8m compared with £0.7m"

Or did you not read that far down?

But they've already said the billing started several months ago, so they are already built in.

They only have the cash for another 6 months, then what happens?

Sorry to those that believed the hype of the rampers over the last week. No understanding of the fundamentals here.

Must be 100s of people down now,

I told you so...

What an awful set of results,

The numbers dont stack up. Turnover up to £1.08m, but previous figures have been approx 750 new customers a month. If ARPU of £25 per unit, it would mean an additional £393k turnover, which it does. But where is the £3.5 Million contract additions.... No where.

In 6 months theyve burnt £1.1 Million in cash. Where has it gone? They were spending 50 to 75k on digital marketing. Wheres the rest of it?

Andys own words
Although EBITDA has declined when compared to last year, this is as a result of the continued investment in marketing related activities to grow the business. Our operating loss was £0.8m compared with £0.7m.

They are losing vast amounts of month, for no reason.

This also seems a strange addition?? Where has that come from
The ownership and use of intellectual property by the Group may be challenged by third parties or otherwise disputed;

Il read that as, Il be an arse on your spelling, because I cant argue your facts.... Best of luck buying on a whim. Poor form encouraging others.

When have i Lied. Im now sure your just on the wind up.

Who would have faith in a BOD that has seen the share price drop over 90% since list?

Stop moaning about my statements and argue that im wrong.

Can you argue on the cash burn rate? nope
Can you argue about the risk of dilution? nope
Can you argue about why they have cash in the bank? nope

Its fine calling me a lier, saying I have an agenda etc etc, but the truth is, Ive only mentioned the facts, that are outlined in the RNS in the last 6 months.

When did I criticise the board?