Member Info for moneyspider

GW - thanks for the info. This is probably a good short to have in the portfolio. He seems to get appointed to rescue business but doesn’t seem to be able to do it.

I agree the boiler was dead a long while ago - many years ago - and investors took a punt on the energy business - which I did. Just sorry it got sold off too cheaply in my view. I also invested in YU Group, which took a massive drop last week due to accounting issues - but they have £11.5m in the bank and the drop was overdone - this maybe a good punt for upside in the next few weeks

Not much then. They why I think they must view this as an opportunity to drive the price back up. They will have lots of clients that will be putting pressure on them to do this.

How much did they sell - I missed that, thought they still have the majority of their holding.

Looks like they have not sold - so they will surely be trying to average down - this alone will drive the price up.

Still a way off my average at £3 ish. but expect it to climb in that direction as the weeks go by. I think that other energy suppliers will be looking at them for their customer base, that why I'm more confident of getting my money back and hopefully a little profit.

Keep it going. As I said bought back in to average down. Soon get my money back at this rate.

Not the total amount but close - trying to get my average down.

I have decided to get back into this share although I feel the management team is poor. This is on the basis that the business will be worth much more to others that seek to grow their energy portfolio. Drax paid a high premium for Opus Energy and now with all the generation that they have acquired from ScottishPower they have ability to service more customers with low carbon energy. At this low price a take over much be on the cards. Will now wait and watch with interest.

He would not be able to stop one, he does not have more than 75%. The institutions that invested will just want to get there money back - not the paper gain but the investment.

He would not be able to stop one, he does not have more than 75%. The institutions that invested will just want to get there money back - not the paper gain but the investment.

Haven’t a clue

Drax bought Opus Energy for a whopping price. My view is that this will now be on their radar as a cheap buy at this price to add more business customers. I would expect a cheeky offer soon. Might average down.

When I bought the outlook was amazing, high gross margins, good net profits, great cash generation and a growing business. Now only after a few weeks, outlook has change from large profit to large loss, weak gross margins and they will not now have enough money to fund the growth (IT systems, people, new office etc) that they claimed was going to happen. Will have to spend a fortune on accountants to check everything, when this money should be used to grow. I am concerned that the cash burn will be too much and another equity raise will be on the cards. A new team would give me much more confidence

I would buy at this level with a better management team. MY bugbear - if you read my posts going back a long while is that they have always overstated the gross margins and future potential. This market can work well with lower margins but to prosper the operational costs must be under control. I vote for a change.

Mikey279 - I don't mind investing in risky businesses as most of AIM is, but really pissed off that only a few weeks ago everything was quoted as being great with lots of potential. Strong cash generation, good profits etc. Could be a good investment but I do worry now about the CEO. He only owns the majority because he started the business - remember he has a paper gain not a loss as he didn't put any money in to start with.

They need to cut the divi and slash the board costs

Cash at 30th June was £18.2m - now only £11.5m

I am delighted to report that our strategy to invest in our infrastructure continues to bear fruit both in terms of scaling the business but also attracting quality staff. We will continue to use these strong foundations to strengthen the Group and manage the opportunity for rapid growth. Revenues have grown by 72.6 per cent and we are on track to report revenues in line with expectations for the year to 31 December 2018. Significant revenues are already under contract for 2019 and beyond. I am confident we have a clear view on our strategy and remain committed to delivering further rapid, yet controlled, growth. Â
In line with the overall strategy we will continue to invest the proceeds of the secondary placing to strengthen and expand our product range and invest in infrastructure, staff, systems and brand marketing. The effect of the investment can be seen in the rapid rate of bookings which averaged £7.82 million in H1 2018 compared to £3.75 million in H1 2017, representing an increase of over 100 per cent.
Cash generation remains a key operational focus and we have tightened up processes around credit control and debt collection which is already showing results in FY 2018.  An operating cash inflow of £2.0 million has been reported in the first 6 months of 2018, an increase of 83 per cent on the same period for 2017.  Group cash balances at 30 June 2018 were £18.2 million. This supports our progressive dividend policy, and therefore we are pleased to be able to announce an enhanced interim dividend of 1.2p per share, an increase of 20 per cent compared to H1 2017.

Floated on a promise to become profitable. Stated results which are lies and raised more money sending the share price up. FD left - knew what the business was really and has probably sold off his stake making a huge profit - he needs to be investigated - this is insider dealing. New FD comes in, discovers the mess which the CEO if he was doing his job properly would have known about and makes them go public with it. Share price collapses and more promises made. A £10m hole on their turnover makes this a loss making business. Why would this be worth anything? The money in the bank will just go into covering some of the losses on the bad debt. Rising wholesale prices makes this even worst. New office building costing them money, 30 staff per month being hired. This is not a well run business.