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Agree, that this is a tad mis-understood.
The other point to note is that the results are audited every year and the annual report and the auditor acknowledges the intangible assets and their treatment. They would require evidence and justification for the valuation. I am told it would ordinarily be a flag to any auditor, and so they would query it. The fact they spend some words saying they look at the model and assess it gives me some reassurance. But I can see why Neary might be cautious, but he omits that bit.
At worst case they are still positively growing revs, even allowing for 100% write-off of these customer list capitalisation costs, they are still profitable and growing that too, plus they have free cash flow.
The damage done yesterday was because of this seller. I have a feeling it is Haris ... we will find out in time Im sure.
Its actually rubbish, and has nothing of any substance in it. And ends by saying on the wtachlist. For ************* I read that as we like this and will look for a better entry.
I am no expert on how targets are supposed to be announced but my take has been from previous years that they worked with/informed the House Broker.
I believe there is no need for them to formally announce anything unless they expect more than 10% variance from the target which at 13.2m falls within that tolerance level. As I say I dont know this tolerance rule as a fact just going by what others have posted. If you want to get it confirmed yourself, then it should be easy enough to get it directly confirmed by talking to the PR Company.
On your numbers, I am not sure how you got £2m from for Roots given the H1 number was £265k I believe. I do think that SkinnyTan will be higher at around 10.5 to 11.0m with the rest from Roots, C+L etc. I think all the other products wont be material at all for this year. Good news though, is that we hav eth egrowth on these to leverage for next year!
If skinnyTan comes in at 10m then mcap for just SkinnyTan should imo be £20m. and every additional 1m would be worth another circa £4m to the mcap I reckon. I'm basing that on what we know St Tropez sold for back in 2010. That all said, I am hoping for £11m for Skinny Tan this year.
Re ProLong, I am not convinced that things are going so well there with that one - its way late, we havent heard anything on it and I am yet to be convinced that IDP can get the sales volumes that justify Haris having paid over £1m for it, not to mention the royalty payments and consultancy fees. That said, if they can finally get this off the ground and show they can grow revs with it then very happy days indeed.
If they can deliver half-decent numbers this year then I will be very optimistic (like VERY) for the prospects of IDP over the next 12 to 24 months.
One thing is for sure, we are (on any metric) stupidly undervalued. The posting of numbers in June/July will help validate this. The company though need to improve (like day & night improve) on the Market comms, RNS releases and general engagement. Once they've mastered that alongside (hopefully) delivering numbers then I really do see no reason why the sp cant be getting back towards previous highs (all in time of course). But for me, the growth prospects here are staggering especially given the risk profile. It is though a l/t value play and not one where it will happen overnight. AIMO.
Thanks Shandypants - where did you get the 2020 numbers from? I would have said 12.8m would be great, but also conscious they dropped some in the H1. But agree as each day goes by it does feel confidence here is increasing. If they hit the numbers and with what is now in the pipeline (eg. ProLong, GrowLase and Charle+Lee) in addition to growing Roots and SkinnyTan then we should have a stella 2020.
The only limitation then is managing and turning around the positive cash flows to keep growth rates up. I would imagine without any new money there is a limit to how much IDP could actually grow organically - I would suggest 30 to 40% is absolute limit which would be great anyway.
I'm very happy indeed if this all materialises, as no way could the sp stay below £2 imo.
I believe the target was revised to £13.2m after the H1 update. Certainly the House Broker has it at £13.2m which I also believe the Company is now working towards.
I am looking beyond this FY too - I think if they can deliver over 12.5m in this FY then that will help to restore some confidence. I think Kieran is doing a great job.
I do think IDP have completely got it wrong on the lack of comms and news. But ultimately, the deep damage that was done by Haris selling the day after pumping the sp on a clear 'pump' RNS that appears like it was designed to let him get out into volume was almost criminal. Then missing targets too didnt help. And now not providing any updates is not helping at all.
The saving grace is that given they havent released any form of update suggests they should be within 10% of guidance, which is encouraging.
Hi All,
Its been a while since I posted but have to say with some kind of update coming before end of June that I am feeling somewhat confident for the next year here in IDP. I'm not expecting it to all be roses, but certainly I am hopeful the headlines coming out IDP over the next year will be good reading.
Shandy, thanks for sharing your posts (they are being read).
Whats, everyone's thoughts on the update for year end? Based on the Finncapp not market expectations for me are at £13.2, but with the H1 update and me being cautious I'd be happy with anything north of 12m and certainly, I am hopeful of 12.5m.
Thoughts?
Not sad at all - I've been taking video diaries of different stores and counting number of stocks. Its important to do this level of research so that you know your investments are safe. I really do think IDP have turned a very important corner this quarter and have set themselves up very nicely ready for next quarter.
They do still need to learn the art of managing the markets/investors and in engaging and communicating with them though - especially the management of the RNS system.
Especially when you consider this:
St Tropez sold twice in last decade - first time around at £70m and then at £62.5m. This on revs of £20m...
SkinnyTan will have revs of £10m this year and GROWING. Yet IDP only valued at £16m!!! This doesnt account for their other products either!!!
https://www.theguardian.com/business/2010/sep/27/st-tropez-sold-to-pz-cussons
... But for sure this is a quality company doing quality things and the share price will catch up - its just a matter of time.
Steady on fella. There is no J&J yet and wont be any time soon.
Re Asda's, I initially thought the same that I would want them to announce that in an RNS, but the majority of the fake tan market is being sold through Boots & Superdrugs. It is a responsible management team who are trying to grow the compnay in a responsible and stable manney by adding values and not by ramping the sp.
I guess it all depends on the reasons for investing, but if a value play which i think most people are then all that is needed is patience if you are a holder. If you are not then these are the levels to be getting in at, not on the top.
These have seem £4.50 a share and back then the revs were around £7m. Now it is forecasting alomst double that amount and growing and is a quarter of the peak share price. I can see where this will end up at some point if it carries on as it is playing out... never have i been so confident in IDP, especially from these levels.
That's £0.5m a year additional revs if that holds true - so defo not not to be sneezed at!
So, they are now in Boots. I went to Swindon branch today and they were building out the shelf. Looks like all Boots will have them up by tomorrow.
Sheffield Boots are having the Boots launch party for Skinny Tan and Skinny Tan team will be there too. This is happening Thursday evening.
Isnt the store release this week?
It's show time guys - SkinnyTan launching in Boots this coming week. IDP will more than double their retail footprint and will now have exposure to where 80% of the UK fake tan market is sold through. At 1 times revs and 10 times p/e ratio this is stupidly undervalued. I wont even talk about frture growth and p/e ...
Just watch.
New location opened up in Castleford! And guess what - they have a site in Milton Keynes...
https://xscapeyorkshire.co.uk/leisure/immotionvr