RE: uk investor show6 Apr 2017 15:43
So what happens after that? All being well we would be looking at an exciting three year period as the company looks to bring in hoteliers, financiers and joint venture partners etc and sell/lease out plots on the site, perhaps – as I understand it – with some servicing fees going forward. So that should see Minoan able to monetise the asset fairly quickly. But then, this is Greece…..
What about finances? My expectation – as with pretty much most of the Casino – is that the next placing isn’t far off. But not only is the company keen to stress that it hopes to avoid any further dilutive placings, it is starting to make noises about rewarding the patience of its long-suffering shareholders. That means dividends – although I rather doubt that’ll be any time soon. But it does suggest that there is a quiet confidence at the company that it might just scrape through without having to rattle the tin again.
If the court decision comes in favourably, is there yet another delay just around the corner by way of some other appeal being brought, I wondered? No, this is the last round. So all being well we should see the company demonstrate the value of its project as/when deals start to be done.
Those with a more sanguine view might want to add the word “if”!
But “if” the company can demonstrate upwards of £60 million of value in the Cave Sidero site then it seems to me that it is game on for the shares.
As to current finances, I took a look at the results announcement for the year to October last year which was released last Friday lunchtime. The timing of the release didn’t fill me with hope. Neither did the first thing to jump out at me – the dreaded letters “EBITDA” (AKA “bullshit earnings” in these parts). It came as no surprise that the EBITDA number was positive, and even less of a surprise that the bottom line then showed an increased loss.
Apparently things had been going very well but trading fell off a cliff in the aftermath of the Brexit vote, although it has since picked up again. Ahhh…..Brexit. And EBITDA - what’s not to like!
But in what looks to me to have been quite a PR own-goal, a look at the cashflow statement made for much happier reading. There we see a net outflow of just £41,000. Granted, that was after raising loans of £129,000, meaning a cash-burn of £170,000 for the year, but I note that it also included a deferred consideration payment of £130,000 and purchase of plant, property and equipment of £103,000. I gather that the latter was down to an upgrade at head office.
On the downside, I’d rather see a new deep pile carpet in the entrance hall AFTER the company has been bringing home the bacon but as a general point both of those items strike me as being one-offs (I’m told they were) which, otherwise, would have seen the company cash-generative for
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