The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
How does Trakm8 soak up a £1.4m loss?
And what if the hoped for surge doesn’t turn up?
Two huge questions I’d want answered, personally.
They have to raise cash or sell the business. Perhaps I’m missing something but that to me seem obvious.
All this speculation would be moot, if the company provided clear and detailed RNS. What was provide seems rushed and ill-thought-out. It probably wasn't but that's the impression.
Lots of sells over at SAAS - Probably feeding through a little. At the very least, their continuing faith in Watkins must be denting the credibility of what was/is a pretty stellar reputation.
Agree.
This is pure take out play now. Question is simply how much.
Could Micro let it fall into admin before picking up or picking over the bones? (genuine comment - not being facetious)
Could be turning.
Just a half-positive update on Tuesday and this should fly.
*Why is it necessary to delay the signing for the best commercial outcome? What does that even look like - any ideas?*
Sounded to me like they hadn't even got the deal over the line.
This was also pretty worrying:
"the Group anticipates that its FY-2025 results will be adversely impacted by the lower levels of insurance connections, as outlined earlier. At this stage, the extent of any shortfall is unclear as this will depend on insurance capacity returning at which point the Board is hopeful there will be a surge in demand."
Hopeful ???
Plucky spirit and optimism only take one so far...
Not an ideal basis to go cap in hand to the market..?
Interestingly, when the Sainsbury's contract was delayed they sounded much more confident. To me, this sounds a whole lot more uncertain about whether they can even get the deal over the line.
£7 Close
Can't stay away can he...
That said, still can't see an offer here from Frasers.
No. Problem is Watkins and Co have run what was once a profitable company (£2m-odd, one year) with decent revenues (£30m) completely into the ground. They simply can't be brought along for a further ride. So, two questions then become pertinent:
1. what will Micro be prepared to put up to take control of the company and show Watkins and Co the door?
2. what will Watkins and co accept?
Is there a 3rd take private option?
The obstacle is surely Watkins and Cronies - a buy out would mean the end of the gravy train. Broadly speaking they have eaten well over the years. I suspect they will try for a placement first. MO of Aim companies.
Who is going to dip their hand in for a placement? Microlise? If they do then with the loan note, they will be forced surely to take the entire company?
I think this is the end of the story here, one way or another - i.e., in terms of Trakm8 existing in its current form.
Microlise must be as disappointed as those of us who have lost a lot here.
Yes, I had similar quotes - 25,000 for 7p each. But didn't pull the trigger as you never know with falling knives - I've cut myself before.
And it still might head lower.
Depends on whether today's buying / churn is sustained.
Lighthearted comment, Steve - don't be so thin-skinned.
Anyway, let's see if this upgrade creates enough volume to move the price meaningfully - preferably upward!
GLA
One of the Steves' is pleased - must be a good sign.
Well, the price is moving back up. I was tempted, but the remaining opaqueness around the cash situation, given the massive loss led me to pass in the end.
Good luck to everyone here.
I think that's always been one of the problems here, the company's reliance on single contracts. Just makes things too precarious, too reliant on jam tomorrow.
Would be interesting to know what thoughts Micro have on this - perhaps, as you say, this the moment, but at what price.
Any thoughts on the cash situation?
Will they ride to the rescue once again?
What's interesting in my opinion is that they managed to reduce by about a percentage point the other day, whilst the price approached the 52 week low. I guess that's why the UT trades are accounting for most of the trading volume day-to-day here.
Yes, just saw the RNS flag flying over here ...on a Friday - not typically a good sign.
*The Group's cash position at 31 March 2024 is anticipated to be approximately £0.4m.*
Free cash after or before the loss? What are their monthly overheads?
This should have been a much more detailed statement outlining exactly how they now intend to survive...
That's year-on-year.
Month-on-month they're flat, which is ahead of market expectations. Online clothing sales did 'well' (although, whether they did well enough is another matter).
Retail sales volumes in the United Kingdom remained unchanged in February 2024, following an upwardly revised 3.6% increase in January and defying market forecasts, which had anticipated a 0.3% decline. While clothing (1.7%) and department stores (1.6%) experienced boosts in sales due to new collections, this was counteracted by notable declines in trade at food stores (-0.3%) and fuel retailers (-1.3%). Additionally, online sales surged by 2.1%, marking the highest increase since July 2023, particularly for clothing retailers, as wet weather affected footfall. Year-on-year, retail trade was down by 0.4% in February, partially reversing a 0.5% advance in January. More broadly, sales volumes fell by 0.4% in the three months to February 2024 when compared with the previous three months, and by 1.0% when compared with the three months to February 2023. source: Office for National Statistics
Some good signs in there.