Member Info for Myfairlady

One of the really good things about the results is the transparency. With the analysis of all of the contracts and the previous guidance of contract value, one is able to come up with a decent estimate of revenue for interims to 30 June 2015. Won't put all details here but I get to revenue of £560k. Maintaining the gross profit margin of 70% gets you to £392k. Assuming admin expenses remain similar, the business will be marginally loss-making. The issue in the short-term is that half of that revenue falls away by July and a bit more in August unless these evaluations are positive and the contracts start immediately which is unlikely. Even with new contracts and positive evaluations, it is very likely that Q3 will be burning cash as contracts take time to get going so they will need a cash input from somewhere. On a positive note though it only needs all these contracts to be renewed and a couple more and the business should be profitable but at the moment they only have one contract that goes into 2016.

Your subject heading for the results induced me into reading the results with a sense of excitement......that quickly dissipated

lol

Understood but 6.2 is only relevant in a mandatory offer situation - not relevant here. Not saying it's a done deal, I think it is partially dependent on Odey although they can do it without him. They cannot have the proxies in advance as otherwise they would have had to state it. Atb

Testpack - don't think it's that complicated. They need 50.1% and so can get it without Odey but easier (obviously) with his support. Odey is clearly trying to get a slightly better offer but good luck to him as not many people get the better of Teddy Sagi in a negotiation!

Ha, great question cashking , to be honest I had assumed that most of the posters on here had a connection to Directors Talk!

You know this stock a lot better than me but it looks to me that the net cash balance has drifted slowly downwards in recent years as its trade receivables have drifted upwards. I just don't really understand the business model and am put off by that accrued income number.

This was mentioned on another BB so took a look. Cash less debt of £1m and slightly loss making so hard to get too excited about it especially as there are a few red flags: Continued delay in repaying CULS Ridiculous amount of accrued income (almost 2 years of revenues) that may or may not be ever collected. This increased by £2.5m in first half out of total revenue of £4.4m - very strange. Doesn't this just get paid for providing software, I don't even understand how this level of accrued income develops. China I'll pass for the moment - don't understand the chat on here about 40p or 50p but good luck to the current holders.

Cashking - the Guildford pilot was announced last year so doubt there will be a further announcement just yet although hopefully they will keep it going once the pilot has finished which should be soon.

Loving the banter here but any idea when the results are out?

Thanks NS. The reason I started looking at this is that I have been following Coms for a while and trying to decide when the recovery play might start and get involved. Now knowing more about the incestuous world they exist in, it seems likely to me that MXCP will offer them some sort of deal around Redstone (and maybe other parts) and then immediately flip it to Redcentric or another connected company at a profit. Still might be opportunity there though. MXCP might look to take a strategic holding too so that they control even more of the market! Btw, the Castletown Montal deal is just as bad, just smaller numbers. Hats off to these guys for making profits out of nothing just don't know how sustainable it is!

I like this company but can't quite get my head around the various interconnected parties. Did they really just buy an asset for £9m and then sell the majority of it almost immediately on to one of the businesses they have a share in, and advise on deals, for £12m?! Why didn't they advise the company to buy it for £9m in the first place. Might be missing something but guess it means one should invest in this vehicle rather than the underlying investee companies.

Also, Sorbic, another Chinese stock went into suspension today so that combined with the positive results but no divi here has got people nervous and therefore selling. I hope for your sake, MM, that this is different to those other Chinese stocks and that you and others taking a punt at these seeming low levels gets their rewards

please stop typing and go and get some fresh air - you're scaring me. If this is real, then the share price will look after itself and you have no need to worry. atb

If bidders were interested, the perfect time was in the 3 months before today when the business had no long-term CEO and the share price was at an all time low (of recent history). I doubt Mullen's new contract would be much cheaper than an external candidate to payoff. I think the only reason one would appoint an insider is that Jim was the best of the candidates as there were no strong external candidates and they preferred to stay with someone they know rather than take a risk on someone a bit less experienced like the Glynn appointment 5 years ago, which didn't work out.

Harvard, those are very rose-tinted glasses you are wearing. When a business has struggled as much as Ladbrokes vs its peers in recent years, the market was hoping for a strong external candidate to shake things up - it is much more difficult for an incumbent to stand up at the next results and kitchen sink everything, fire loads of people and make significant changes when you've been involved in it for the last 18 months, particularly as Mullen's been in the division that has disappointed vs its peers. He may (or may not) be better than Glynn but the market was looking for more than that. Good luck with your holding

Been following a few Boards for a while and thought I'd try and contribute to the debate.I don't hold any shares at the moment just interested in business and especially early-stage ones, where they may be opportunity to invest, and thought it would be good to have some debate on the merits. I would prefer to avoid the normal name-calling that occurs on some of the boards. Positives Decent amount of funds following IPO Early-mover advantage in a growing market Neville Upton has a successful track record, albeit with a different business and business model, but he seems sensible to me Deal with Vue seems to be a sensible / cost-effective way of trialling these offline tournaments Could be an attractive takeover target down the track Concerns I know that they are not seeking revenue at the moment particularly but I was hoping for more subscription revenue in the second half of the year. I was surprised that revenues were lower in the second half than the first half following the launch of the website at the start of the second half. This gives me a concern about the subscription model so will be looking at these numbers closely going forward. There is always going to be some churn in the online user base so would hope for a faster growing base than indicated so far, although hope this will grow throughout he year as they get more publicity with the offline tournaments They will struggle to compete with the prize-money of some of the offline tournaments that are sponsored directly by the likes of Activision so would like then to tie up more directly with them to try to make their set of tournamnets the critical ones for the leading players to participate in. I would also have liked to have seen more noise about the opening tournament at Vue - anyone know how well attended it was? Unknowns I don't have enough visibility on how the advertising and broadcasting revenue could develop over time although guess it is based on users and viewers - anyone else know more about this? I'm sitting on the fence at the moment but will be looking for key metrics on users growth and subscriptions in the short-term and will get involved if growth starts to pick up significantly, otherwise will stay on the side-lines MY21 - thanks for the Arden info - I presume not but are there any other broker notes out there as, when evaluating possible investments, I discount house broker info to a certain extent