Member Info for martyh

Where did you get hold of the note?

Does anyone have a split of U.K. high street sales between their own stores and concessions? They are always grouped together in the accounts.

Looks like they currently have 60 of their own stores and 142 concessions.

Unfortunately a lot of the high street sales were though concessions in Arcadia stores, which are now going to close.

From today’s announcement:

‘The Board has also been taking steps to reduce its exposure to UK department stores going forward. In the year ended to 31 December 2020, the Group reduced the number of concessions operated by 20% to 142.

Of these remaining concessions 85 are in Debenhams stores and 29 in Outfit stores operated by Arcadia, both of which are in Administration. We note the announcement that Boohoo has acquired the intellectual property assets of Debenhams and that these stores are expected to close, and that there is uncertainty as to Arcadia's future. There is no financial exposure to outstanding balances due from these businesses and the redundancy costs that would arise from these store closures would not be significant.’

What are people's thoughts on the timetable for a Nasdaq listing?

Good to see the number of users increasing significantly.

From the admission document:

'Since launch, MelodyVR has continued to build awareness and engagement and now boasts approximately 325,000+ users.'

Nice tweet showing the market cap over time. The market cap was into the £200 millions a while back with just MVR. Add Napster and it must be worth at least that.

https://twitter.com/thesageinvestor/status/1336582636681261056?s=20

At 3.75p the new group is valued at £92m. That's very cheap including Napster.

Hoping for 5p+ today.

Great news,

Most of the additional funds have been raised by a $25m loan from Davis Partnership. Huge show of support and minimises dilution.

Along side this there is another $10m equity raise at 3.75p with the Directors taking 26m of the 200m shares being issued.

Shares to start trading again today.

I think Bidstack would certainly be getting a commission.

It seems that Bidstack have been able to offer a package to Duracell to allow them to pivot into the gaming world. Both sponsorship of a esports team in FIFA and in-game advertising in FM (and potentially other titles).

Duracell also benefit from the exposure they get from the associated media articles and social media posts. Gareth Bale has posted on Facebook about the Duracell sponsorship. Gareth Bale have 33 million followers on Facebook.

I think it could be quite a lucrative deal for Bidstack. Also, depending on the structure of the deal, all of the money from Duracell (in-game and sponsorship) could flow through Bidstack and be recorded as revenue.

It also shows how uniquely positioned Bidstack is to allow brands to enter the gaming space. I continue to believe that the current market cap hugely undervalues the company.

I’m increasingly confident that the year end forecast will be met and we’ll see a substantial rerating.

Does anyone know how they ranked earlier in the year? I can only find information going back 3 months.

Would be good to know how they were doing in H1 to gauge it against revenue.

Thanks - appreciated.

Abeck - are you accessing the Googler Play Store from within an Android device?

I can't find those stats from the website.

Do you have a link?

Thanks

The loan had a 20% interest rate so good to repay.

Now it’s repaid the company is virtually debt free and has about £3m in cash.

There is a £43k interest free loan remaining and a £70k convertible loan (10p conversion price). I expect the convertible loan to be converted into shares but either way the overall debt balance is now very small.

I think I’ve worked out the wattage point from the WHIreland note and it looks very good.

Standard solar cells are 6 inch squares and standard solar panels come in two common configurations, 60 and 72 cells.

Verditek uses standard 6 inch solar cells and their panels I’ve seen for sale so far are 60 cell panels (the panels for sale by distributors and the EvRiderz photo are 60 cell panels).

The WHIreland note calculates current ramp up capacity based on 350 watt panels and maximum capacity based on 420 watt panels.

The note also says that Verditek can go up to a maximum of 72 cells per panel.

Verditek are constantly upgrading their panels and I think 350 watt is their latest 60 cell panel and 420 watt is based on changing to the larger 72 cell panels (the maths works exactly). I think this must be the case since the note states that 72 cells is their maximum number of cells per panel and you wouldn’t get 420 watts from a 60 cell panel.

These figures mean the Verditek cells are now becoming very efficient. 350 watt/420 watt for 60/72 cell panels would put them as best in class of all the flexible panels I’ve seen. More efficient than the top of the range Solbian panels that sell for 10 Euros/watt.

In reality I think sales will be much higher in 2021 and more closely fit the 40WM or 60MW scenarios laid out (which give £9.9m and £13.3m gross profit respectively).

I also hope the average selling price will be over 1 Euro/Watt. The 1.5MW SAF order was over 1.2 Euro/watt.

Good to have a note out from WHIreland.

As has been mentioned it gives earnings scenarios for 2021 onwards going up to 60MW.

The 20MW Scenario uses 1 Euro/Watt as the selling price and gives a £5.5m gross profit (a 32.5% gross margin).

This ties in with what Paul Harrison said in his interview and it’s great to see this in black and white in a research note. It gives people something to base a valuation on.

Great to have the Department of International Trade involved. They could really help with Verditek's expansion.

Great news today.

Someone else worth mentioning. I believe Verditek take a payment up front on orders and then further payments before shipping. This is confirmed in the RNS today which states that the first stage payment has been received.

This means that the company can scale up sales quickly within running into any working capital/cash issues. It means they are definitely cash flow positive from the orders (without the build up of receivables balances you often see in companies ramping up sales).

Just read the TW article.

He’s just looked at the figures in the interim results and think they will need to raise cash at some point. He doesn’t have any extra information, he’s just looking at the interim results.

As always he is selective with the information to suit his purpose. He assumes the following:

1) Hasn’t assumed cash flow from orders (on the basis he doesn’t trust the company etc)
2) Assumes the £700k of loans will need to be repaid in the short term.

Let’s look at the reality:

1) The company has announced orders of £2m+. A number of these have already been shipped. Based on just the 1 Euro/watt base price we were told there would be a 35% margin. Since they are selling for over 1.2 Euro/watt the margin should be over 40%. Therefore the orders announced to date should create £0.8m+ of positive cash flow in the second half.

2) As I’ve pointed out before the £700k loan balance is made up of a £530k interest bearing loan and a £170k convertible loan.

The interest bearing loan is from Gavin Mayhew, a non executive director of the company. Gavin has a major shareholding in the company (21m shares) and has always supported the company (in December 2019 he converted a £1m convertible loan into shares at 8p per share when the share price was under 4p). I think it very unlikely that he will call the loan and jeopardise his holding in the company (which is worth much more than the loan).

The convertible loan is convertible at 10p and £100k was recently converted into shares without the need for any cash being paid by the company. That leaves just £70k that needs to be settled.

The company had £588k of cash as at 30 June 2020 and received another 330k from warrant exercises in August – making £0.9m in cash. This alone would be sufficient to cover overheads for the second half. Add in the cash flow from orders and the company should be in a very comfortable position and should be cash flow positive going forward.

At some point I expect a trading statement which will state that the company is cash flow positive for the second half of the year.