Member Info for jc1220

Hi all

In their AGM statement and final results they have referenced a pipeline of opportunities with a total contract value. i.e. "the pipeline of new business development opportunities now comprises a total contract value in excess of £500m"

Does anyone know what time period the contracts cover? In previous updates they have suggested they have sight of their income over a 3 year period.

I'm curious as this contract value has increased from £429m at year end. An increase of £70m is significant given full year sales were just £70m last year.

"I have been saying this for many months. DVRG need a big partner and sales are not coming through as promised."

Like the China Resources JV?

Interesting comment re: holding banks. If the interest rates are going up due to inflation it's not necessarily good to hold businesses which, by their very nature, hold a lot of currency.

Only way I see it is it's good to hold businesses which produces a lot of cash at good margins and have pricing power (which I think ASOS do, particularly with their own brands.)

Only issue with ASOS I see is they seem to need a large amount of capital investment to grow - I know, who doesn't, put ASOS's return on said capital isn't always best (as we all know from recent history.)

Just to follow up David Law's question - has anyone discovered a water monitoring competitor who can also provide real-time detection/automation?

As other's have pointed out, a few competitors are popping up (e.g. Biobot) but none seem to offer the level of automation that Modern Water do.

Fascinated to see what comes of the China Resources JV. It could be absolutely massive. I'm not sure what the risk is of DVRG needing to stump up cash to make the deal happen - and whether that should be a cause for concern?

How have you calculated the cash burn? A quick glance through their report re: operating loss:

"Group operating loss increased by 7.5% to £6.4m (2019: £5.9m). The extraordinary circumstances brought about by COVID-19 in 2020 means that there are several significant items in the 2020 result which might be considered one-off and it is therefore difficult to draw a meaningful comparison from underlying performance alone."

And cash burn rate:

 "In July 2020, the Company raised £4.0m (net of expenses) through a placing, open offer, share subscription and convertible loan note issue. Hence, total cash used during the year was £3.5m. EBITDA losses absorbed approximately £1.5m whilst working capital movements released £0.6m. We expect this to reduce in future as the benefit of deferred rent and taxes is caught up. Hence the net cash used in operations was restricted to £0.9m."

I can see where you're coming from, but I think you have to read the whole document and find answers there . It looks like you've oversimplified the figures a bit too much.

I guess - like everyone says - if you don't understand the company there's no rush. Take a bit more time to get your head around it and make the right decision for you.

I think £35 million valuation is pretty on the money. Grown a heck of a lot in the past year but got to prove the demand (and therefore revenue) is there.

Right.

Sorry, I didn't mean for my comment to come across as a personal dig at your posts below. I think it's important to do research into the macro market opportunity - and having that research shared is very useful.

I'm more sceptical of a CEO referencing market opportunity when it has yet to be proven. e.g. Gerry's recent tweet

"The US president’s recent infrastructure bill calls for modernizing “aging water systems [that] threaten public health in thousands of communities nationwide.” @Modern_Water #DVRG @DeepVerge #Microtox"

I'm just a lonely sod with a couple of quid wondering how much to trust someone when, after doing a bit of research, it sounds like PI's have been done over in the past. Deepverge sounds like a fantastic company with many opportunities for growth over the next 12 months. I'm just trying to protect myself and not be ignorant. Appreciate help with that, but fair play if the answer on this board is to just not think about it and go elsewhere.

Has anyone ever looked into a bit of the history of Deepverge's management?

Something slightly dodgy seemed to happen with Alltracel Pharmaceutical Plc (the company which Gerry Brandon and ex chairman of Deepverge Tony Richardson founded.) The company listed on AIM in 2001 and was bought out by HemCon Medical Technologies in 2008 for what I understand to be a very low value of £20.8 million / 14p a share.

Having a look at message boards private investors seem to cry that they were royally fudged over by the deal, believing the company was worth far more (and they deserved much more.)

I see a lot of similarities between the two companies. Same management, similar ethos of buying / merging, exciting medial tech, IPs, sale prospects, big marks they operate in etc. (this is based on an hour or so sleuthing online)

I'm just trying to work out whether this is something to be concerned about, and we could all be fudged over, or whether it's a group of private investors who bought too high and valued the company incorrectly - subsequently blaming the management for their decision?

There's something that can make me uneasy by how much Gerry sells the company on his social media. In one instance I think he's just being open, honest and excited by the product but the next day I feel like it's a bit of a con (I personally get absolutely sick of hearing how big the market we operate in is e.g. China's throwing $4.5B at water management yet DVRG has 4million of sales so far....) Combined with reading about PI's experienced with his previous company I feel a bit uneasy.

I also don't know whether it's normal practice for someone like Gerry to jump on the board of a bombed out company for them to get acquired by the company he is CEO of.

I also can't work out Cellulac Limited (which Gerry and CFO Camillus both run) Seemed to have some good bioplastic work going on until 2018 when DVRG acquired 10% and their tech was spun into Labskin...

I don't know. I'm hoping I'm just reading too much into everything and it's all above board. It just feels like a complex web which some individuals are benefiting from and I'm hoping we will too. I'd just appreciated others opinions!

I think another potential tailwind is being added to an ESG ETF.

So4 seem to have the credentials. Presumably being added to one of those would add a lot more trading volume / liquidity. Does anyone know the process by which a company is added?

Responding without checking but haven't they got quite a number of warrants due to be exercised before May and another tranche at a later date? That would offset a placing for the time being?

I'm really frustrated that we haven't heard more news from Dynasty. It sounded like they were having some very promising conversations towards the end of 2020 but it's gone silent.

I've periodically looked into some of their other esports investments and they are woeful. In many ways that's to be expected but, for example, Googly esports aim to be the largest esports franchise in India. They have 21 Twitter followers and no website. The description for Diemens is "Diemens Esports PTY Ltd (“Diemens”) formally The Cubs is an Australian based company." Who decided to invest in these companies? I might move to Australia, tell them I'm a gamer and hope they give me £200k.

Re: Satoshi, for me, I can't see big players transferring money in cryptocurrency in the near future as it's associated with speculators moving the price + or - 10% per day in the hope it goes to the moon. That's my guess. I hope I'm proved wrong, but it feels like a few years away.

Maybe I'm just having a moment. Currently feeling quite disillusioned.

Hi all

Just started my research into this company. Sounds really promising but I'm curious about the competition.

Why would a hospital / medical centre choose Induction's products over the other ~23 on the NHSX clinical communications procurement list? What would prompt them to switch service and what makes you confident in INHC's market penetration?

Without being a doctor or nurse I feel almost blind as to how the market operates and therefore what the growth potential of the company is. The one thing I am confident in is how slow and bureaucratic the NHS can be - which does not fill me with short term confidence. Any knowledge share would be appreciated.

Point 1 - yes, I believe that's why we're seeing all these forms

Point 2 - I'm equally baffled. I presume that by opening a short and long you're setting yourself up to ride either direction over the long term but each direction will be balanced by the other in the short term? Perhaps it's to do with wanting to be in the market rather than in cash? I could be wrong, just a guess.

Point 3 - I think John Story held a large number of shares before exercising warrants. I believe that's what he has been selling rather than exercising the warrants and selling those shares. In some ways I find it useful not to look too much into the why's of doing it, as a private investor he could have any number of reasons for freeing up cash (esp. if he still has a large number of warrants he can exercise and he is willing to take a separate long position.)

These are all guesses, so happy to be overruled on any of the points!

"Product [PPE] will initially be delivered and sold without d2p whilst customer and manufacturer structures are being developed. This may take at least the first half of 2021 due to factory constraints"

Am I right in thinking that means PPE sold so far hasn't included d2p technology? Whichever way you look at it, it doesn't make for great reading. The big seller mid-pandemic and it's going to take at least 6 months to get back in stock. Hopefully it's thanks to them selling out of all d2p equipment, rather than it having always been the case.

"Season one featured eight of the world's leading virtual racing teams and was viewed by more than 40 million fans"

Bodes very well for future sponsorship / advertising agreements!

I get the frustration, but I think there are a number of reasons why it is a good decision for a company to treat their staff well and support charitable organisations within their industry. To name just two:

Treating your staff well will help ensure you recruit the best talent. Recruiting the best talent will mean you provide a better service than competitors. Providing a better service to competitors will mean customers return.

Donating to charities within their industry will improve the organisations brand identity and public relations. A strong brand identity and healthy PR will improve sales.

This is almost so simple I imagine it’ll come across as patronising, which isn’t my intention (well, almost as patronising as suggesting I’d be happy if they gave the 80 mil to charity.)

I think these things are important and will support an organisation’s growth - just as much as returning cash to shareholders and treating them well. I think Pets have an excellent opportunity for further growth over the coming years (even more so with their purchase of TVC and offloading of specialist centres.) I think it’s a balance, but locking in customers with good PR now, amidst the ‘baby boom’, is a good move.

Thanks for all the info you've shared, dbeam - super helpful.

I think it's a link to the vox markets interview on 29th Oct.

adeg1

Lots of people are starting to give their money to businesses who treat people well (their staff, front-line workers, charities they support etc.) rather than the likes of Amazon. I was really pleased to see £8mil used for good + increase public profile + provide a compelling reason to shop with pets rather than an insignificant divi increase.

I think pets are really well placed with their subscription service, loyalty programmes and their ability to be a 'one-stop shop for pets' which covers toys/food, grooming and healthcare. Convenience and price are king. The added bonus of sound ethics makes pets even better.

If you've sold at a loss I wouldn't overly worry. Bide your time, wait for the inevitable Brexit dip and then jump in with two feet. Pets are very resilient whilst offering the potential for sustained growth. Here's hoping good Black Friday trading provides another quarter 40% PBT growth!

Would the price not be based on an ASX VWAP (like previous times - hence the halt) rather than AIM? I'm not sure why a volatile AIM price should affect negotiations.

Given Tony's consistent and public suggestion that the project is fully funded it is of course surprising and disappointing that another raise is required. That being said - given how experienced some people on this board suggest they are - I'm equally surprised at how emotionally driven the comments and decisions seem to be, rather than getting to the bottom of why the raise is coming.

In their September 2020 quarterly report they extended the date for repayment of the Bridge facility to 30 Nov. Presumably this is because they didn't have enough cash to cover the $10million repayment. Am I missing something when assuming that this raise is to cover said repayment and therefore should not be considerable?

Really promising presentation. The move into bigger / commercial transfers has huge potential. If they bag a big client there should be a considerable network effect (e.g. seeing a trusted partner use it + give it a seal of approval x 100 would open the flood gates.)

Fingers crossed the word gets out there over the coming months.

It feels like Blu has too many eggs in Satoshi's basket. Finally acknowledged this year that the market isn't ready for the tech, now trying to pivot but it all feels a bit desperate. Going to be quite the job to disrupt Mastercard and Visa (with absolutely zero market presence other than two random, small fry companies.) The Stellar network doesn't seem to be mentioned too much either.

Fingers crossed DTransfer has some traction. The marketing and comms manager they're hiring has a massive job on their hands.

If the portfolio was a bit more balanced it'd feel like an exciting mix. Hard to trust their judgement when they've gone so heavy on one company (or bet.)