Member Info for mugginsthedog

Disappointing that there was no update (as many posters on the board were forecasting) on Covid testing or a 'blockbuster' RNS, disappointing that the research note gave no indication on sales over the next year or two. Highly alarming that the company itself is only expecting a modest rise in sales - and that is based on an collapse in sales last year which continues a worrying trend. The company appears to be regressing.

Newuncle, the management team had little choice as the group was a few days from going bust. They failed to sell the testing business and they had little option. Two of the main subsidiaries went bust anyway - hardly a triumph of management.

I rather think that you have missed the point Retire. The same executive team are running the company now as were running it then

I think that there is pretty much universal acceptance that the 2019 management team were poor. Understandably the company is trying to distance itself from that record. While the addition of 2 new NXDs are welcome, I doubt that, on its own, a couple of new NXDs represents a new management team without further fundamental change. We are left with the CEO who is the architect of the historical problems running what is supposed to be a 'new' company. Until that changes I expect that the market will be rather sceptical. I am surprised that there are some on this BB who seem to think that this is not an appropriate forum for a discussion on this fundamental point.

The forthcoming results for 2019 will be an interesting indication of the strength/weakness of the current executive team.

I am afraid that I really do not understand what you are talking about.

Interesting. I was not aware that you could not ask entirely legitimate questions of the management on a BB. Seems to me to be an extraordinary level of censorship. Silly me to ask a few questions about the shocking performance of the management team over many years. Obviously to even suggest that the failure of the current management team is in any way pertinent to the future of the company is absolutely absurd and I can only apologise from the bottom of my heart.

Ima, you make some very good and valid points. It is quite true to say that the CEO has been with the company for many years. As such he is largely responsible for the numerous failures of the company including failure to land the Gib contract, the constant flip flopping between strategies (including the previous strategy of selling the testing business – now the focus of the company), the financing crisis (including the collapse of 2 of the main MW subsidiaries), the failure to capitalise on the great technology, the failure to build on a range of partnerships, the failure to build a robust management team and the failure to build a sales pipeline.

Over this time he has presided over a company where the SP has collapsed from 119p to 2p.

It is simply not possible to argue that there is a new management team when the architect of the previous failures continues to run the company. The lack of action by the new NXDs to resolve this is in danger of undermining their credibility.

Ima - you are absolutely correct.
The forthcoming results will be a good measure of their (in)competence

I think that you inferred that the Government were partly responsible which I am not sure is quite correct. But we are splitting hairs - I think that we can agree that the management team are entirely/substantially responsible. Further, virtually all previous efforts at commercialising the technologies they own have ended in ignominious failure.

I have lost count of the number of times that MW has announced what is supposed to be a major commercial breakthrough and then nothing happens thereafter. As well as Gib here are a few other examples - Partnership with Hangzhou Water in China, Partnership with Bilfinger for Forward Osmosis, Sunup JV, AquaPak package desal, AquaPak on China, AMBC in Africa, Technology partnership in China. None of these seem to have any noticeable impact on sales which continue to decline. The management team are simply not capable of commercialising great technology. My concern is that to leave them in place if/when waste water Covid detection technology is developed will simply result in another commercial fail. The upcoming results will be a judgement on the existing management team, who have been in place for many years, and if there is not a substantial improvement then surely the new NXDs will have no option to find a team who can deliver.

The Gibraltar government have announced a number of major projects over the last few years. ALL of these are going ahead with the exception of the waste water project. The failure to win this project has nothing whatsoever to do with the local politicians who approved all other projects. It is clear where the fault lies - with a weak, naive management team who had no idea how to navigate the local politics.

SanDiego - they were the preferred bidder for the Gib project but, unbelievably, they failed to land it. Worse, the subsidiary who was the preferred bidder when into liquidation. Unfortunately the same muppets who screwed that up are still running the company.

Paul - there is a slim line between simplicity and stupidity and unfortunately you seem to have crossed that line.

Even if they did have the technology there is no reason why this discredited exec management team (who are still in place) would be any more successful in selling this technology than any of the other great technology that they have in their portfolio (eg Gibraltar, desalination, testing/monitoring, brine concentration etc etc). After flirting with bankruptcy (and in 2 cases falling into bankruptcy) this management have a lot to prove. With the late accounts and falling SP the market is indicating that they have lost patience.

As far as one can reasonably ascertain they do not currently have technology that detects Covid-19 in waste water. and certainly nothing that is currently suitable for sale.

Paul
Unfortunately you clearly have no concept how often the management team (who are still there) have failed to commercialise great technology. They even failed to land a £25m project in Gibraltar when they were the preferred bidder. There is no reason to believe that this time it will be any better. Your comment about inserting a grey box demonstrates a startling level of naivety/ignorance. You are indeed very simple.

I think that if we had a waste water detection system up and running now then we would reasonably expect the price to multiply, provided that there was a sensible plan to commercialise it. But we do not and we may never have one. Further;
- The results have been delayed at very short notice
- There is a big hangover of shares following the placing
- The same executive team who have chased the price down from 119p to 1.9p are still in place
- The executive team who have consistently failed to commercialise great technology
- Two of the major subsidiaries have gone bust and the group almost ran out of cash a few months ago.

Before they start prioritising the opportunity we need to have detection technology that works and is proved and demonstrated. I have been through the RNSs and I cannot see anything that suggest that there is anything actually working. Until they do have something MWG will not be taken seriously. The fact that the market cap remains around this level indicates that few people believe that there is a breakthrough. There have been hints that we are getting there and even some suggestions over dates but that is not the same as having a working model.

The next challenge is getting a team to deliver on the commercial opportunity and there remains considerable doubt over that based on the failures of the current team. Using the football analogy there have been numerous changes of owner and manager but the on field captain is still there after 14 seasons, despite the team sliding into Division 14B of the Southern League.

I have been very careful to differentiate between the Board and the Executive. I have no issues with the Board it is just the appalling record of the Executive I have concerns about.

How is it that after 14 years where the SP has collapsed from 119p to 1.7p that they are still there. Sadly, however good the Boards strategic plans are the current Executive team are completely incapable of delivery. Time for them to go and bring in a team who can deliver.

It is very frustrating seeing a company with the incredible opportunities, technology and market that MW have yet continually fail to deliver.

I am not sure why you thought results would be bad. Management said they were expecting a 20% increase. Instead we got a 30% fall!

When there have been 14 years of management failure why would anyone believe that the executive would suddenly change from being the worst to good?

I do not have an issue with the BoDs behaviour - it is the Executives ability to deliver that I am concerned about.

There has been 14 years of total and absolute failure - the sales in 2019 being but the latest example. I do not need any more evidence that they have failed and there needs new blood to deliver the new strategy. Without the all to obvious requirement for a new executive that the credibility of the entire BoD will be called into question.