Member Info for iWantThatOne

Slowburner, sorry if I've confused you. Simplistically, the current �400m+ EUS - if maintained throughout the year - will be generating approx �6m of revenue which will cover the cost base of the company (�5.5m, as you say) before interest, tax, share payments, depreciation and amortisation. Hence we are "EBITDA positive". But those additional items amount to about �2m and must also be covered by revenue coming in. So, roughly, �133m more EUS (i.e. a total of �533m throughout the whole year) would just about cover everything. We expect to increase EUS regularly throughout the year so will need to end the year with a run rate of maybe �650m if we're to reach a �533m average. If we achieve that, then we're not just EBITDA positive but will have broken even or posted a tiny profit. As I said, all very rough as margin varies by type of business and EUS is becoming a slightly less useful indicator of progress, but gives you an idea.

Slowburner, sorry if I've confused you. Simplistically, the current �400m+ EUS - if maintained throughout the year - will be generating approx �6m of revenue which will cover the cost base of the company (�5.5m, as you say) before interest, tax, share payments, depreciation and amortisation. Hence we are "EBITDA positive". But those additional items amount to about �2m and must also be covered by revenue coming in. So, roughly, �133m more EUS (i.e. a total of �533m throughout the whole year) would just about cover everything. We expect to increase EUS regularly throughout the year so will need to end the year with a run rate of maybe �650m if we're to reach a �533m average. If we achieve that, then we're not just EBITDA positive but will have broken even or posted a tiny profit. As I said, all very rough as margin varies by type of business and EUS is becoming a slightly less useful indicator of progress, but gives you an idea.

Approx �2m in ITDA at the end of the last financial year, so not trivial but it can be covered with a good year (e.g. , simplistically, �133m EUS over and above current annualised run rate at a margin of 1.5% would generate enough income to cover these items).

Good update after the Strategy Day by Progressive today. Amazon physical goods in Japan seems to have gone well, now looking at other Asian territories. The biggest thing I took away, though, was how increasingly important the data will be and how it can be commercialised - hence the tie-up with Audiens.

The price drop is certainly more than implied by the dilution alone. My guess is that the deep discount has got the market thinking the investors didn’t agree with the market price and wanted greater reward for the perceived risk. The rest of the market then follows.

Price drop way overdone. Approx 5% dilution but BGO gets an earnings enhancing (from 2019) business and a stronger proposition.

Commentary in today’s Daily Mail business section (not my normal read, honest): it suggests the sp fall yesterday may be due to not updating on profits for the year, “.....as investors braced themselves for its full year results in March”. Poppycock - didn’t the RNS say “in line with expectations”?

I'm dubious about the IBS valuation too but consider this - when you look at the NAV per share since 30/3/17, it's gone up. The revaluation of VS and the extra investment in it has more than outweighed the extra shares issued and other factors. If IBS is valued at anything, clearly there's an even greater increase. And that's true even when allowing for the extra 250m shares to be issued shortly. All the above is after admin expenses and all Zaf's so-called flying round the world at shareholders' expense. That's what I want from an investment company - a growing NAV per share. The market isn't ascribing the same value as in the accounts, that's true.

How many times does this need to be explained? LEG is an investment company. It needs to nurture its investee companies and continue to invest until they can be exited at an increased value. Share capital needs to be regularly issued but the overall value of LEG should increase over time, dependent on when its investee companies are revalued. If investors here don't like regular placings, move on.

Wrong. IBS has been given no value in the accounts. And it also states clearly: "This valued Legendary's resultant stake of 11.1% at US$1.1 million (GBP845,000). This uplift is not reflected in the interims but is expected to be reflected in the full year numbers."

And in terms of buying more VS stock, that's precisely what most investors here wanted! If you believe in the product then why not keep buying more even at higher prices in the conviction that it will reach significantly higher valuations?

This is really boring now. If Karim agreed a deal with IBS does that mean he can only do so as a director of LEG? No. Presumably he does not just do that one job. He has clearly managed to convince someone that he has something to bring to the IBS party and he's attributed part of that to LEG and part to himself. Has he charged the travel costs and all his time on IBS work to LEG? That's the question to ask. If yes, then that's wrong. Do you have proof that he's done so?

Report Sunday 10/12 on "Amazon tipped for big win in Whitehall again": "A lucrative Whitehall contract to build an Amazon-style marketplace for government departments and local councils to procure goods and services could be awards to Amazon". This relates to building the Crown marketplace, an online portal which the government claims will "transform public sector purchasing in the 21st century". Implications for VS?

SL79,I don't care if Karim makes money too as long as I do. For example, if LEG's stake at IBS is valued at £1m and is brought into the accounts, I couldn't give a toss what personal arrangements Karim has. My shares will be worth more as a result. Looking forward to some positive news on VS when they post their accounts near year end at Companies House. Btw, are you still invested here, SL79?

Up 33% in early trading.

I'd be disappointed if EUS spend run rate exiting December were only £452m considering it was £400m at the end of August.

Amazing Prime had an estimated 3m users in Japan (source: Morgan Stanley) and they pay about $32 pa. That's about $100m annual fees. How many will pay by DCB? Who knows, but a healthy addition to BGO's bottom line from its own fees.

I was just re-reading Progressive's research note from June following the Japan RNS. That claims that Amazon has sales in Japan of $10.7bn p.a. Bango now has deals that cover 75% of Japan's mobile subscribers, and 15% of e-commerce is done via mobile. So, very crudely, $10.7bn x 75% x 15% / 1.3 FX USD to GBP = �926m p.a. from Japan physical good alone. I appreciate the Japanese Amazon arrangement will take some time to get going, but - even allowing for the vast simplifications used - I can't help but think that the current 2018 EUS forecasts are extremely conservative. I've come afresh to this company after having looked at it briefly years ago, so apologies if I'm repeating old news, but this looks a genuinely exciting prospect. Cashflow good, coming into operational profit, strong market position, costs under control, stable management, platform stable. What's not to like? My only question is whether the current valuation is sensible, and based on the above - and other aspects - I think it's more than reasonable. I've now bought in and am hoping to enjoy the ride.

You've forgotten the bit about VS quietly going about its business with the NHS, probably generating some revenue now, with a re-rate of LEG's share price likely once all is revealed.

We pay from capital that's been raised in placings, from warrants and so on.