Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
How ITX can help in cosmetics industry :
https://news.sky.com/video/share-12978435
GLA
In the past, I have been critical of the chasm between the fantastic products being developed by ITX and its Board capability to convert undoubted potential into profits. After all, at the end of the day, that is the reason why shareholders entrust their funds to the Board.
I don't think the subject of Board incentives has been discussed before.
According to the 2022 Annual Accounts , JS received a bonus on 40 per cent on his basic salary - this compared with a 7.5 per cent bonus in the previous year. Also, LD (not a Director in the previous year) received a bonus which doubled her basic salary in 2022. These bonuses were voted through by the two non-executive Directors on the Board - presumably, the bonuses were well-deserved, but how they were calculated remains undisclosed to shareholders - it is unlikely that the bonuses were related to a small reduction in trading losses.
Furthermore, the employee share option scheme is not related to profit performance either, which for potential US investors would (I suggest) be a big negative.
US investors like stock (share) options to be linked to profit performance and/or share price performance in any given year. I wonder if this is partly why there appears to be a general lack of interest from over the pond, since the share consolidation?
Finally, on page 53 of the 2022 Annual Accounts there is a substantive paragraph under the heading 'Share Based Payments'. If anyone can understand what this actually means, I and no doubt other fellow shareholders, would like to know in layman's language.
GLA
Smart - totally my sentiments, too!
The share price will continue to drift (IMOH) on no positive news - that's how the market works. The presentation earlier in the month is now long forgotten and the market has not been impressed.
More importantly, potential US investors have kept away for the time being.
If you ask the MM for a price spread today, it will be provided based on whether you are considered a buyer, or a seller. Almost certainly, it will currently be assumed you are a seller and the sale price in the spread will reflect that.
The good news is that the SP is underpinned by cash equivalent of about 80 pence per share. So that is probably the default price until something exciting happens.
All the Board has to do is report some positive news, which indicates long-term profitability - until then it's fingers crossed and we LTHs will have to lock this investment in a very dark cupboard.
GLA
FoolsG...... With respect, you're not right here. As always, the devil is in the detail - the cash flow statement.
The reported loss in H1(23) was definitely reduced to $0.7m compared with loss H1(22) $1.1m and loss H2(22) of $1.3m. Note however, that the $0.7m loss was partly financed by a fortuitous US currency gain of $0.44m. That is an enormous differential for a six month period where gross revenues were only $4m.
If we keep on recording massive currency gains, perhaps there is something wrong with the exchange rate which ITX applies to its sterling equivalent.
Don't know where you get your info of two months in HI(23) breaking even??
GLA
No amount of snippets on this BB as to the number of contributions ITX products make to different branded products will make up for a marked absence of RNSs indicating that our Company can convert sales opportunities into desperately-needed signs of profitability.
As I have said before as a VERY longterm investor, the MMs aren't stupid - they know that without regular RNSs from the Board, the trend in share trades are only going one-way - SALES!!
Since the much-heralded share consolidation in August @ 204p, the SP has continued to drift, having lost a further 20 per cent of its market cap - this despite a positive Board presentation earlier this month. Yet, our Board seems unconcerned.
You only have to look at the SP movement, which is regrettably and inexorably on a downward path - the sale of just a few shares seems to send it lower.
Why would potential investors want to put their money here currently, when the Board offers no guidance as to when the Company will be in profit?
The longer the Company fails to get to breakeven level, the more its successful $11.5m fundraise will have to be used to shore up continuing losses. None of us signed up to that!
History suggests that the next RNS (2023 final results) will not be until June 2024 - that's NINE MONTHS away. If there is no positive news in the interim.............????
Come on, our Board - think of your fellow investors for a change....
GLA
Radium - your quote on TRMR - 21 August 2021, when TRMR share price was 818p (now trade@ 156p):
"Without a doubt, Tremor has just provided a very robust Q2 /1H earnings report and the accompanying forward looking statement points to another equally solid report in November. We then enter what is traditionally the most profitable final qtr of our fiscal year. I fully expect that the next two earnings calls will push the US and UK brokers into making substantial upgrades for Tremor, for 2022/3. That’s where I have set my horizon. Take the slightly longer view, that at least, is where I stand. I always preferred the slowly, slowly to the spikey, spikey. "
Frankly, you and STT deserve each other.... Both of you just grow up!
It's all very well using this BB to reveal what commercial brands are incorporating ITX products, but it does nothing to convince the market, that ITX is a good place for investors to place their money.
The problem is that ITX is on AIM, one of the most manipulative and unattractive markets to be quoted on. For the sale today of half a dozen shares to influence the SP by 5 per cent, says it all!
The consolidation (albeit only one week old) has done nothing to attract US investors, as was mooted beforehand. No doubt time will tell on this strategy.
As a significant holder here, I hope there isn't going to be a second consolidation of 2:1, should the SP halve to 100p!!
IMHO, our Board needs to maintain investor interest by keeping shareholders fully informed on all REAL progress being made, other than the mandatory RNS announcing trading results every six months.
On the other hand, perhaps there's nothing to announce and that may be the problem here.
I've said it before - ITX appears to be a company with fantastic green products run by a group of non-commercial professionals with total disregard for the interests of its shareholders.
Just saying... and GLA
The Newlands family appears to have had enough and one would assume they will be disposing of their entire holding on any upward trend in the current SP.
I can't see any medium term improvement in the SP until this large overhang of shares are cleared from the market.
It's a shame really, because the SP is not a fair reflection of the Company's massive potential with the various strikes gradually coming to an end, IMHO.
TwoGood - I disagree with your point re wafer-thin margins.
The company is moving from total reliance on Urgent Care (current year now 73 per cent of total revenue and down from 85 per cent in 2022).
The more profitable Elective Care (EC) business now represents 26 per cent of total revenue (up from 14 per cent in 2022).
Also EC profit margin(@ 19. 8 per cent is 2.2 per cent higher than Urgent Care (@ 17.6 pr cent).
So higher margin business on a division which now accounts for over 26 per cent of total revenues indicates TLY going in the right direction and no longer a one trip pony.
My main criticism is that the final dividend should not have been declared at this time - in order to conserve cash during these challenging times.
Foolhardy in my view and the market has voted with its feet on this irrational decision (IMHO). Perhaps the CEO will explain why, later this morning.
GLA
Simon Thompson changes his mind - what a difference 5 months makes!
Is he right this time around, or was he wrong last Feb - only time will tell.
Nothing has really changed since Feb 23 (except a prudent saving of cash) previously earmarked for dividends...
https://www.investorschronicle.co.uk/ideas/2023/02/20/a-sell-off-that-s-been-overdone/
GLA
Don’t understand these continual postings sending us to obscure websites selling our products (in small quantities). We know they have a multitude of applications, so there is little elation when another one is discovered.
What we really need is a company announcement(s) disclosing a major trading deal(s) of serious value.
Unfortunately, JS has already inferred that we have a customer base comprising mainly private companies, but no big corporation, which would provide ITX with immediate accelerated growth towards that elusive break even position and on to that subsequent pot of gold called profitability.
Good summary AJP, but really ..... JS's manner in dealing with investors' questions was pretty awful (constant hesitation and misreading their questions from an autocue etc..)
On a number of occasions, he could barely read out the questions, which he was then attempting to answer.
I just don't get why he thinks he is the best person to head these presentations - it was very uncomfortable watching his stumbling performance.
Another glaring omission in the presentation, was any reference to the words 'profitability', or 'break even'. When asked to comment on those two important factors, he simply suggested that investors refer to the two analysts' reports which 'have it about right!"
Why HE wouldn't / couldn't give out that information in person is beyond me and gives the impression that he's not interested in shareholder value.
Indeed, at one stage (when asked about the current share price) he was completely dismissive of the subject.
I continue to heavily invest here and I hope that the £10m of new funds are not going to be dissipated in supporting future trading losses.
We have 14 much-valued patents in our portfolio, so why can't we simply stop using these funds to develop new formulations and just concentrate on generating profits from our existing product range.
Hopefully the next TU in July will provide us with some answers and further progress.
GLA
a lot of nervous investors selling up ahead of today's presentation - it's become a bit of a tradition @ itx.
let's hope there are some new revelations, rather than a repetition of stuff we already know... (perhaps as to how the new capital is going be appropriated!!)
js has had plenty of time to rehe**** for this one. as we lths know, he's not the greatest presenter. so let's hope he delivers a smoother and more confident presentation than those of the recent past.
fingers x'd......
Reasonably OK, IMHO.
However in the hall-year's RNS (Sept 22) JS firmly stated:
"The Company remains on course to deliver full year 2022 revenues ahead of current market expectations based on progress in commercial volumes and success in passing on increases in direct costs.
My analysis (below) suggests we did not meet 'current market expectations'. Of course, using that phrase is a bit of a cop-out, unless JS informs us what 'market expectations' actually were.
Revenues for H1 were $3,057k, so H2 must have been $2,543k - and that is a 15% decrease from H1, which I very much doubt was what JS had in mind last September.
However on the plus side, GP margins in H2 were 28.55%, which was a definite improvement on H1's margin of 24.89%
Also I agree that with only 25 days to the end of H1 this year, a lack of any reference to current trading today's RNS is extremely disappointing. Let's hope tomorrow's presentation puts that right!
GLA.
Last year RNS on update was 22 April 2022.
It is now, 25 April 2023 and all the Board can do is to announce new Joint Brokers!
No wonder the sellers are here today....
Total disrespect being shown to shareholders, IMHO.
However, we live in hope that someone @ ITX, or perhaps its brokers , are keeping an eye on this BB.
GLA
Warren - I agree with your sentiments, totally
Investors here need to assess whether this Board has the enthusiasm to drive this company forward as an exciting profitable business, or is it just using shareholders' funds to further its scientific research, as commendable as that may be to save the planet.
I think we are all a bit fed up with no news, no trading updates etc..
As a significant long-term shareholder, I have given JS & Co the benefit of the doubt on his strategy here.
However, for me, the next trading update will be crucial to see which direction ITX appears to be heading..
GLA
It was always non-sensical as to why the SP would have dropped so alarmingly in recent months.
So, is this the start of a concerted reassessment by true investors, rather than remaining an arena for transient day traders to operate?
Whether it's a Tory, or Labour Government in power, the NHS will always require private sector co-operation.
All unprofitable contracts currently with private sector companies have to come to an end, eventually. New profitable ones will replace them for sure.
Long term, if TLY continue to provide services which are required, then anticipated profit margins will return.
Keep the faith!
GLA
Check this out from today on CNN:
https://edition.cnn.com/travel/article/seaweed-sargassum-florida-caribbean-scn/index.html
A 5,000 sq. mile blob of seaweed heading from the Caribbean to the Florida Gulf Coast. It's causing havoc to sea life and de-oxygenating to oceans, something which ITX products are trying to arrest...
GLA
"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."
GLA
Bubs49 - I'm still here and extremely optimistic.
"Price is what you pay, value is what you get". (Warren Buffett)
Long term prospects remain good. Compare TLY with your recommendation to buy SBTX @ 66p a couple of years ago and now standing at 20p with no money, no profit and no hope.
GLA @ TLY