The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
But to what end Steward? Seems to me like we don’t have authority to raise anywhere near enough to satisfy creditors, and then there’s working capital to worry about.
A refi, perhaps mixed in with a share consolidation, seems to me the most likely option if we van find anyone to lend. And if we can the terms will be horrible I think.
Some might think, like Gemstar, that “ongoing initiatives as previously announced” must mean the diamonds. It certainly could.
But it’s also worth remembering this from the final results;
“In the event that the receipt of the historic claim proceeds were received after 30 November 2023, management is confident that with continued progress in the realisation process Mercuria and Alpha would remain supportive. To date, Mercuria and Alpha have extended the original repayment date several times. However, as mitigation, the Company continues to engage with investors and debt providers in order to provide liquidity to repay the Mercuria and Alpha debt and to articulate the fundamental strength of the Group’s business so as to attract additional funding when required.”
So, “ongoing initiatives as previously announced” could just as easily refer to these other engagements with investors or debt providers.
Just for info, but one thing I noticed is that between August, when we were told about the CP split, and the CP announcement yesterday, Cantenalucis LLC has sold down 500k shares taking them from 6.2% to 5.8% of the company. I don’t really think there is much to that at all - it’s a modest sell down over the last 5 months, but always good to be aware of these things.
All of the usual Pumpky, ie all wages, cost of sales, operational overheads etc.
Anyone have a view on the fact that we no longer appear to have an FD? It’s great we’re promoting internally but I can find next to nothing about our new financial controller although I suspect this is likely to be her;
https://www.linkedin.com/in/laura-towse-cgma-ba-hons-4a61bb82/?originalSubdomain=uk
If is is, and not to be disparaging, she doesn’t seem to me to be hugely experienced…
Seems to me that Yates is effectively taking executive responsibility for finance within the business. I’ve no real issue with that - it will save money and he has plenty of experience and qualification for that role.
We are left with Hand and Yates as the only remaining Exec directors, and Mary Tavener as the sole NED.
We don’t really a a covid business any more though, apart from being one of many distributors of a third party test.
I agree Apre, the drop today is just the traders moving on. We do still have lots to look forward to in the short term with Loop, Upfront, Folium and potential FDA approval of Salistick. CEO of Loop, BTW, just got recognised by Forbes as a “change maker”. The presentation later will be interesting.
And ref the concert party, it just seems odd to me that so much time and effort has been put into splitting the original and now making what seem very minor changes. The only outcome I observe is that the founder group now just consists of Yates, Hand, and their families, but then that doesn’t seem particularly strange.
Mixed feelings today because the update, whilst ok, was light on detail and not as good as I had hoped for. Period comparable at 118% looks great on paper, but then H1 last year was a poor period. Reality is that H1 this year has fallen £500k on H2 last year, but remember that Yates said in the last Investor Meet presentation that things quieten for the business in the first quarter of each year when academics holiday, so perhaps that’s unsurprising.
The elephant in the room is of course cash, which at current burn rate will last 9-10 months.
I don't know anything about charting or the reputation of this chap, but he has 17.6k followers and so this might help. stir some interest this afternoon.
https://twitter.com/Borg74/status/1744931684116836758
Hopefully John - I thought we might see a bit of buying today in anticipation but it seems either people aren’t interested or we just fly so far under the radar for most. Maybe we’ll see a bit more interest as we move towards the close.
Agree - it’s conjecture only.
Personally I think something is in the vaults; I just don’t think it’s what was originally confiscated. Why, because in early 2010 the mining minister took the parcel from the RBZ under false pretences and contrary to the court ruling, only to be ordered to give them back a few weeks later.
Conjecture again, but ask yourself, why would he do that.
ASI - looks to me like Sinarom are in Court on 16th for the next hearing in proceedings started in 2022
https://portal-justitie.ro/dosar/?dosar=11450/3/2022&institutie=TribunalulBUCURESTI
and Vast Baita on 15/1
https://portal-justitie.ro/dosar/?dosar=2096/100/2022&institutie=CurteadeApelCLUJ
Which looks to me like an appeal by the creditor against an earlier court ruling in Avacta favour
https://portal-justitie.ro/dosar/?dosar=2096/100/2022&institutie=TribunalulMARAMURES
But I could well be wrong and as SS says, it may be nothing to worry about because we seem to be perpetually in the Romanian Courts.
ASI - I tend to agree that a placing at these levels wouldn’t achieve much given current headroom authority. It would perhaps buy a little bit of time. Asking for more headroom would help, but doesn’t send a great message I think.
But then if we need cash soon (and that’s only an assumption), what are the alternatives?
- Diamonds? Well there’s hope (if no solid basis for that) at the moment.
- Debt restructure - again I suppose it’s possible we might be able to raise more through debt, perhaps as part of a full re-fi, but even if we could I suspect terms would be very painful and worse than the exorbitant 20% we agreed with Alpha.
- Revenue - it could be I suppose that revenue has risen sharply, but we have no evidence of that. Who knows what we will see in the BP production report, soon hopefully.
- Convertible bonds maybe, but again terms would be painful.
- Sadiq Khan’s magic money tree possibly.
Short term cash is the biggest issue for me here at the mo. Get past that somehow and the significant asset, and opportunity, potential can be realised. Fail and there is the possibility of administration - it’s notable that Vast Baita and Sinarom are both back in Romanian courts next week as part of bankruptcy/insolvency proceedings.