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Bobat, they also said:- " however as the Company noted yesterday, with a pipeline of multiple other potential contracts, the Company continues to monitor funding requirements and options to ensure it has adequate financing in place to deal with the anticipated expansion of services."
To create shareholder trust, they need to move away from their modus operandi of share dilution.
Gibbo:- "but that won’t be a bad thing if it is to fund an expanding business , even if it is equity."
Funding to expand business, yes, but would very upset if via further dilution.
With the two new contracts and the slow move out of Covid restrictions should present WSG with the ability to fund expansion via more shareholder friendly sources. This must be the way forward from now on.
5eights:- "so where does all these FTSE tracker funds get their stock from as no-one in their right mind will be selling"
Well the FTSE 250 tracker funds won't need them anymore!
Based on last year's loss, and being consistent with that yearly loss for future years, I reckon they have 4 - 5 years of working cash; this also includes the £300k annual saving on interest.
They should at least have sufficient cash to cope with initial setup costs for new contracts gained in the next couple of years.
I see good momentum ahead and it is not going to take too much positive news on contracts to see sentiment shift.
AIM, It could have been way briefer by simply referring to 4th March trading update; lots of copy and pasting taking place!
Nothing new, but nothing bad. I only see trading improvement coming their way, that is my take.
Off out to get pasted.
Let's remember what was said two months ago:-
"The £5m capital raise we undertook in December has enabled the Company to repay all its outstanding Convertible Loan Notes and the outstanding RiverFort loan, saving some £300k annual costs, which means we enter 2021 debt free, other than operating leases and with the capital reserves to deal with the current global uncertainties and to undertake current and anticipated new projects."
Also:-
"The outlook for 2021 is looking positive. Revenues from existing contracts, including long-term managed services and the revenue slippage from 2020 provide a basis for our optimism and together with the ongoing recovery from Covid-19 in our guarding, training and West African Airport operations, which in January 2021 experienced the highest passenger numbers since the airport closure in March 2020, some 14.6% ahead of budget, is all encouraging. These together with recent and anticipated new contract wins, are expected to put the Company back on course for the double digit % revenue growth in 2021 that we were experiencing prior to the Covid impact"
We know what the results will say; it is any comment on first quarter and outlook I am more interested in. I am expecting:-
1. No money raising exercise.
2. No shareholder dilution.
3. Profit for first quarter 2021.
4. Positive news on new contracts.