Member Info for NoelShempsky

400,000 - a big deal? Comments please - not you worm, sensible ones only please.

I'd like to see the others jump in too.

what did I say last week?

https://www.investegate.co.uk/falanx-group-limited--flx-/rns/director-pdmr-shareholding/201909241137004784N/

The end -
I am watching the trading with great interest. For me, this is a time for serious decision making - is it a chance to offload some before it drops back again, or do I hang on for 3p?

Good morning FK.

I was intrigued by that figure of 222%, but that was a minor detail in the report.

There was nothing in the results to make me want to put more money in, but that is because I am already so heavily loaded up.

I find all very tantalising. As we have seen from Crossword and Sophos, the demand for cyber security is huge and for FLX there is the added benefit of the SolarWinds tie-up, so FLX should be a good prospect - but can I trust a company that gives out so little information and says something about four weeks, but fails to hit that target? I have in mind all of your comments about "snouts in the trough" and smoke and mirrors, oh worshipful one (that should keep the worm busy on a long reply :-) )

I always treat figures with a degree of caution. In recent months, I have heard two guests (well respected senior accountants) on the Business section of Radio Four's Today programme say that there can be lots of nasties hiding in the figures and the auditors won't pick up on them. Those guests were talking about accounts in general and NOT about FLX specifically. Also, look at all of the high profile company collapses in the last year or two where, after the collapse, the accounts, which had been passed of by auditors, were found to be dodgy.

Figures need examination - e.g. "Loss per share reduced by 53% to 0.58p (2018: 1.24p)" - it sounds good, but is that only because the extra shares diluted the loss per share?

A lot of the hope value relies on the SolarWinds tie-up paying off. Mike Read said - "We anticipate the SolarWinds partnership to start to bring benefits in the second half of the current financial year as they rollout their product" second half of the year - doesn't that mean from the start of October? and in the Chief Executive Officer's Report we find this - "to support growth plans such as SolarWinds which is expected to start benefiting in the year ended 31 March 2020".

So it is anticipated and expected, but not guaranteed. At 10:31 on Monday, MrDibbles told us - "The company now has 100’s of happy customers…with more joining very soon" - more joining soon - I hope so, but didn't he make it sound like a certainty rather than "expected".

Also, see this - "SolarWinds has engaged with the three inaugural TMSP’s, of which Falanx Cyber is one" - so the period of exclusivity is over.

So with my reluctance to take the numbers as evidence, for me it all boils down to - can I trust the people and the things they say. We should get the Interims in November. They won't cover the second half of the year when the benefits of the SolarWinds tie-up are anticpated to start rolling in , but I hope for a few words in a "Post Period Highlights" section to give us an indication of if it is happening. If not, then I want a trading update very soon after the Interims.

I am watching the trading with great interest. For me, this is a time for serious decision making - is it a chance to offload some be

MrDibbles - re. my posting at 17:04 yesterday - "The Company may need additional access to capital in the future" and your reply at 17:49.

I wasn't expressing any view on whether or not the Group may require further financing.

I posted it merely to point out to the people on here who insist that there will be no placing, the wisdom of the saying "Never say never".

I feel so flattered that the worm took the time and the trouble to write all that.

It pleases me to know that he reads my postings so intently and absorbs every detail.

Note - "the fourth tranche when the share price reaches 20p" - when will that be?

Please note that these are just things that caught my eye. Please see the full document.

13,550,000 share options were granted at 3.50p, a price 19% over the then current share price. They vest in three tranches: the first tranche when the share price reaches 6.5p (25%), the second tranche when the share price reaches 9p (25%) and the third tranche when the share price reaches 12p (50%). The Share Options only vest if the average share price has reached the relevant threshold level for a period of three months, save for the event of a change of control in the Company, in which case they will vest in full.
4,249,999 share options were grated at price of 5p. They vest in three tranches: the first tranche when the share price reaches 7.5p (25%), the second tranche when the share price reaches 10p (25%) and the third tranche when the share price reaches 12.5p (50%). The share options only vest if the average share price has reached the relevant threshold level for a period of three months, save for the event of a change of control in the Company, in which case they will vest in full.
2,000,000 share options were granted at 7.125p. They vest in four tranches: the first tranche when the share price reaches 7.125p (25%), the second tranche when the share price reaches 10p (25%), the third tranche when the share price reaches 15p (25%) and the fourth tranche when the share price reaches 20p (25%). The share options only vest if the average share price has reached the relevant threshold level for a period of six months, save for the event of a change of control in the Company, in which case they will vest in full.
The weighted average fair value of the 17,799,999 (2018: 26,200,000) options granted during the year was determined using the Black-Scholes and Monte Carlo option pricing models. This resulted in a cost of 0.84 pence per option (2018: 3.41p). The significant inputs to the model were exercise price as shown above, an expected option life of three and a half years, expected volatility of 70% (2018: 50%) and a risk-free rate of return estimated between 1.02% (2018: 0.35%) and 0.92% (2018: 1.16%). The volatility is based on analysis of the volatility of the company’s historical share price.

2.1.1 Going concern
The Group made losses of £1.8m (2018: £2.0m) in the year of which £1.2m (2018: £1.6m) relates to the Adjusted EBITDA performance of the business. Cash balances as at 31 March 2019 stood at £2.4m and these were seen by the Board as sufficient to achieve break even and cash generation on its organic plans. Should the group not achieve its revenue and growth targets the Board routinely prepares alternative stress test scenarios to deal with lower growth and any ensuing shortfall in working capital. This assumes that cost reductions and discretionary expansion spend would be curtailed as well as cessation of certain investment spends. Other measures could involve the disposal of assets or business units. Furthermore, the Group could seek, as in previous years, the support of investors and Directors (debt or equity) and has received offers of invoice discounting facilities should it want them.
Based upon the above the Directors have a reasonable expectation that the Group has adequate working capital for the twelve months following the date of signing these accounts. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

There are statements in here that show MrDibbles to be a clueless oaf.

Page 14 or 15 (14 ptined on the page, but Adobe reader says page 15)

"The Company may need additional access to capital in the future

The Group's capital requirements depend on numerous factors, including its ability to expand its business and its strategy of making complementary acquisitions. If its capital requirements vary materially from its current plans, the Group may require further financing. Any additional equity financing may be dilutive to shareholders, and debt financing, if available, may involve restrictions on financing and operating activities and adversely affect the Group's dividend policy. In addition, there can be no assurance that the Group will be able to raise additional funds when needed or that such funds will be available on terms favourable or acceptable to the Group. If the Group is unable to obtain additional financing as needed, the Group may be required to reduce the scope of the Group's operations or anticipated expansion, dispose of assets or to cease trading."

However, I think is a general warning and not a statement that they definitely will need to raise funds.

https://www.investegate.co.uk/falanx-group-limited--flx-/rns/availability-of-report-and-accounts/201909231513473410N/

So a 2 million buy didn't send it up by much - but what would a 2 million sell do to the sp?

As usual - nothing worthwhile to say, just abusive remarks from the worm.

I posted my last post before I read yours FK.

1.25p eh?

Oh no. That is dreadful news for me and sadly, your excellent track record makes me believe that you wil be proved right.

If this is going up, then the one who will correctly forecast it will be FK1.

I'm sure his ability to forecast a rise is as good as his skill in forecasting falls.

Don't buy until FK advises that it is safe to do so. I learned that the hard way.

Slimeballs and worms know nothing - clueless and have a hidden agenda for posting. Won't say what he meant by "followed".

Could this be the director buying I spoke of last Friday?

If it is - more on the way?

5p by Christmas?

From the trades screen -

12:18:50 1.89 2,116,402 Buy* 1.65 1.90 40.00k

Nice!

So much for confident results - the CCS share price has dropped by nearly ten per cent.

Confidence at Crossword in its Interim Results.

"Crossword Cybersecurity plc (AIM: CCS, "Crossword", the "Company" or the "Group"), the cyber security technology commercialisation company, today announces its unaudited interim results for the 6 months ended 30 June 2019.


Financial Highlights:

· Orders received for Rizikon Assurance during the period were more than double those received in the same period last year

· The Rizikon Assurance pipeline more than doubled in the first six months of this year and now stands in excess of £3 million over 100 companies in a wide range of sectors

· Product and Consulting revenue increased by 21% over the same period in the prior year

· Total revenue increased by 5% to £570,757

· Total comprehensive loss for the period was £1,077,595, an increase of £246,804 over the same period in the prior year, following investment in product development and sales and marketing

· Cash and Cash Equivalents at 30 June 2019 of £1,294,491.

Operational Highlights:

· The Consulting division launched its vCISO service (virtual Chief Information Security Officer), securing its highest value, multi-year contract to date

· Worked with Imperial College London on enhancements to our second product, Nixer

· Appointed a new world class Advisory Board made up of senior figures from academia, the corporate world and government.

Outlook:

· Continuing to convert pipeline into revenue, aiming to close several large opportunities in the final quarter, and the Board remains confident that full year results will be in line with market expectations

· Next version of Rizikon Assurance which includes Supplier Assurance Framework dashboard was launched on 4 Sept

· Nixer, our second product, on track for release in Q4 2019

· Close to agreeing one or more distribution deals over the coming months.

..."

https://www.investegate.co.uk/crossword-cybersec--ccs-/rns/half-year-report/201909230700081991N/