RE: Shares magazine presentation16 Dec 2023 11:13
Main points I took from the presentation is that:
● contracted revenue for 2024 has increased significantly to £30-£36M - industry players are approaching velocity. 2022 - £12M turnover, so a large increase
● Due to be 'very profitable' in the second half of next financial year (2024). This is based on the revenues that are already secured
● P&L account will be transformed into a profitable business next year, fixed costs are already set
● Aim is to be £100M turnover in 5 years
● The majority of investment is done, equipment, technology, services, people, US facility
● Significant pipeline of opportunities with large numbers proposed
● Surrounded by large Tier 1 organisations in the US
● No real competitors providing this service, main competitors are the customers undertaking this service themselves which does not provide the cost savings (very niche offering)
● Near term growth supports 10% EBITDA
● Return on capital circa 25%
A decent presentation however, slightly unprofessional towards the end where the question was raised regarding share options, Andy questioned the chap on his understanding of options and it got slightly awkward. I also felt that they weren't really all in sync with each other, Andy B stepped in a lot when the financial questions were posed and answered vaguely by Andrew Hebb. Just my take on it, however, a positive presentation nonetheless.
Would have liked more questions posed on future contracts, discussions with Tier 1's etc. We last heard from the company back in July when they stated they were in advanced discussions with a large Tier 1 organisation, we really could do with an update on that in order to settle the market.
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