Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
And yes LTH who is disgruntled at collapse in value of small holding in this through dilution.
But cant get over that key q, what has all this cash been spent on? It's £60m and there's still nothing really. If it had been £1m id expect it on legal fees. If it had been £5m I wouldn't be shocked given part of the world. But £60m?!
What has actually as in real life been achieved for that £60m? Is there a mine? Is there a road? Have the people even been cleared..
Just don't get why LTH don't question where the F has all this cash gone. Constant raising to clear "creditors", what services were provided to get to a credit balance? What actually exists?
If you were to start from scratch tommorow with the license and £1m of investment.. could you get to the same place.. if so. Then WTF was the other £59m for.
I expect they will make a reported profit this year but given its a loss of 2m in the first 6months (that's a known number) I wouldn't be optimistic of hitting any broker forecast given.
The decline in margin has hit the price and given todays update stated liquidnet is lower of expected range (higher margin in theory on that revenue), that's what hit the share price.
Also don't think anyone in the market really buys the FX line hitting margin. Yes you earn in USD translated, but if your broker in London brokers a product in USD (say oil), you pay them in GBP bonus but their revenue in USD is converted at spot rate into that bonus pool. In real terms if you are competent your brokers revenue and bonus pots (cost) are in the same currency. Always been the case.
There's no mention of profitability in this update. It's all revenue. So not sure where that's coming from.
Last trading update they were actually making a loss of £2m for the first 6m of the year. It's only on "adjusted " they were profitable. Adjusted by removing what they deemed to be significant items from costs. Fine but find a year where a firm doesn't incur significant one off costs. It's the real number the auditors sign off that counts.
What's project cash?
They have a loan o/s at 25% interest rate, all due before end of Nov or on project raise ...
How will they clear that? Raise yet again.. with the narrative of "clearing creditors".
Quick look at the balance shows accumulated losses of £40m no less.. what's actually been achieved for that? Is there a mine? Is there a road? Have people been cleared? Erm.. absolute joke.
Even in the reals of aim this one stands out as a cess pit. Good luck all you.
I think you missundertand the market tp icap is in. They provide liquidity to institutional investors, they don't touch nor have the permissions to provide any services to retail like a coinbase for crypto; or for example a Barclays providing FX.
The crypto offering might fly but it's dependant on providing best fill to institutions who so far haven't been that enthused in general. Which is why the market isn't valuing it as anything other than a wait and see element.
Issue is, after purchasing a company with that's tech based, thus higher margin than voice, going through round 12 of susposed cost cutting... Which should increase margin after exceptional redundancy costs...
Somehow this lot managed to get the EBIT margin after exceptional costs, to go down from 16.1% to 12.5%...
Impressive in how bad that is. For a broker if revenue declines so should the amount paid to the brokers, thus maintaining the margin with a corresponding fall in revenue and profits.
Apologies, was discounting down to estimated as of today per an average at best spreadsheet.. point remains given that NAV is 120p or so, that diluting at 70p or so isn't preferable to selling assets if you can get the equivalent of close to carrying value for said asset. Which is why to be fair they are doing the later.
Also agree at some point the valuation decline stops, on out of town centers it already has, pubs probably there as well as a generalisation. Shopping centers, God knows. You go around some of these centers and half of the tenants seem to be 'art galleries' or 'bag shops' which is just a way for a landlord to avoid paying the buisness rates when empty. Redevelopment with less retail, is probably the only viable solution.
Sd235 your lack of knowledge of how share issues work is frankly worrying.
Last published NAV is 120p
If you raise cash at 70p doubling, yes you have number of shares * 70p in cash.. but you now have double the number of shares in issue. Given NAV was 120p and you are raising at 70p in cash. NAV falls to 90p a share overall. Not great for existing holders.
At what price? 70p? that would be a far greater discount to NAV than what they are effectively getting for the pubs.
LTV isnt nice on this, they need to sell something and seemingly there's no real market for shopping centers at the moment.
Which then becomes your own view on how much of that discount is overplayed or underplayed. I wouldn't just concentrate on Nanopore as a saviour though...
Well no as it depends what the remainder is and how reasonable that NAV is calculated on unlisted stocks.
Holders, watchers and the newish manager know theres a ton of absolute dross making up that published NAV in this. Hence the large discount. Large cough, industrial heat, takes most of the flak as it's so ludicrous but there are others.
On a boring accounting perspective, if stones are mined and therefore added to stock but not yet sold as a tender is delayed \ cancelled. How is the value accounted for on the balance sheet? Stock at lower of cost or net realisable value I presume but cost is accounted for how on something mined?
On advfn someone has posted up suggesting it isn't including c stores.
Would seem consistent with just logic that a pub operator like admiral taverns would be after pubs rather than retail which they don't own or run. C stores just bundled in with pubs for presentation in accounts rather than being one of the same.
Realistically if they want to reduce LTV there isn't too many options.
If you look at the big sales they have managed on the retail side it's to the JV partner, that suggests unsurprisingly there isn't huge demand for retail assets at the moment. Of course this is known and reflected in the share price.
It's been disclosed to the FCA which is where everyone is picking it up from. Either direct or via a competent broking platform.
You can find the excel sheet here.
https://www.fca.org.uk/markets/short-selling/notification-and-disclosure-net-short-positions
The problem with these investigations is that the people with access to the confidential are they going to lose info include... All the staff at the regulator, your staff, your lawyers, their lawyers, your consultants you have bought in to help deal with it, your auditors, your internal auditors, the clients you had to get info off, the clients the regulators asked for info, the audit partners pal at the golf course etc etc.
Quite, also if you read the accounts pretty clear the medium term plan is to get this to the size where it's both liquid enough and chunky enough for income funds to take a stake, on the main list of course.
Expect a few more raises before we get there.
"On 9 June 2021 Urban Logistics confirmed that the Board aspires to reach a level of market capitalisation that will justify a move to a Premium Listing on the Main Market of the London Stock Exchange in the near future. In contemplation of a successful placing and assuming no material change in business conditions the Board anticipates a move to the Main Market will take place either with, or prior to, the publication of the audited financial results for the current financial year."