This business is not viable19 Sep 2014 20:31
Financial (MAIN POINTS)
- Revenue increased by 39% to £753,204 (2013: £543,762) of which 55% (2013:53%) was license fees, transactions and recurring revenues
- Gross margin of 60% (unchanged from 2013)
- Adjusted loss before interest, tax, depreciation, amortisation and share-based payments of £1.53m (2013: £0.94m), reflecting planned levels of investment to support growth*
- Proposed placing to raise £3.5 million
So to summarise, despite getting more business, losses increased from 0.94m to 1.53m,. despite huge gross margins. And now they are going back to investors begging for more money!
Which means one of a few things
1) The business is not charging enough for their services
2) The business is in the wrong location (eg. London, high rents, high staff cost)
3) The services themselves are not performing well enough (Not enough retail sales)
4) Investors should not buy into any placing
I can see this share PLUNGING first thing on Monday
SELL!