Member Info for Okehurst1

AS

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Helpful for all us PI’s

Nb Commited revenue for 2026 looks like £1.5M to date so they need to double and get GP to 65% and they are at scratch

The auditors will want to see one years cash burn on hand to sign off going concern

Assume £160k a month burn they have £500k maybe £600k today

SOH never mentioned cash yesterday which was a pity and we can guess he didn’t want to flag so kept stum

If the SBTX stake is worth £600k and they dispose post suspension that’s the next 12 months burn covered and H2 could add almost £200K if production costs reduce 31% and GP hits 65% at that point

Ideally they then need £3M revenue to get to FCF neutral

Suggest that’s the maths

Fair comment on cash Aquae

So they have to sell SBTX shares as/when to get past audit ?

Or drive sales hard

Suggest Friedman has some fair comments about management credibility to create shareholder value

As Letitrun says they are cutting costs they can control, the gross is 53%, cutting marketing costs via distribution deals and decreasing production costs by 31% all appear in traction so the GP should go to 65% +

Less than 8 staff and no debt so no savings of note, it’s all about a targeted 65% GP and distribution deals

The RNS mentions 2 such deals

Hydroxycut (USA)

SlimBiome launched in Hydroxycut, described as the No. 1 selling weight loss supplement brand in the USA

This is a major consumer brand — Hydroxycut is owned by Iovate Health Sciences and sold in Walmart, Target, Amazon, GNC, Costco across America

Getting into Hydroxycut is a genuinely significant commercial milestone — the brand reach dwarfs anything OPTI has achieved previously in the US

“Well-known direct selling weight management company”

∙ Unnamed in the RNS

∙ First order received H2 2025

∙ Product launch scheduled H1 2026

∙ “Direct selling” suggests a network marketing/MLM model — companies like Herbalife, Amway, GNLD, or similar

∙

That’s the punt for us PI’s at this level, one of the above converts to an RNS with $value and this could bag from here

Thanks Martinu

Just working on what they have said really in the RNS

you can count their staff on two hands so no savings of note to be had there

They have moved to a distribution selling model so they can save £500k on marketing which they have already implemented this year

Production costs down 31% we can take that as firm

Gross margin was up to circa 50% they deliver above and it’s 65% ish

Big IF,they hit their sales targets on that margin then the compound affect is decent, one decent RNS and this could be a bagger is how I look at it, meanwhile the balance sheet assets are higher than the m/cap and there is no debt

Not without risk but a nice punt at these levels

Appreciate a few disgruntled maybe ex shareholders who have been burnt here, get that .

Based on the RNS they look on track to get to FCF neutral quicker than the market envisaged, they may well be able to get the gross to 65%, no reason why if they cut marketing (waste )to the tune of 78% and production costs by 31% which is what they said

Same time they have £6.4M of investments plus £1M cash , market cap of £5M with the core business looks like a free ride

It’s pretty simple to now dissect their numbers

With just 6 to 8 staff and no debt total operating costs are £2.6m,cost breakdown roughly as:

∙ Staff ~£500k

∙ Listing/audit/legal ~£240k

∙ IP/patents ~£80-120k

∙ Marketing/selling/R&D ~£800k-£1m (the remainder)

The RNS tells us they have already implemented cost cutting so it looks like this ;

A 78% cut to marketing and selling suggests that bucket was perhaps £650-750k, making £500-600k saving plausible.

Currently revenue £1.13m at 53% gross margin = cost of goods ~£530k. SlimBiome is the core product so let’s say £400k of that is SlimBiome production.

∙ 31% reduction in Q2 = ~£124k annualised saving on current volumes

∙ 48% ultimately = ~£192k annualised saving

But here’s the compounding effect — as volumes grow with Meelung and new customers, the saving scales with revenue. On £2m revenue at 53% margin, a 48% production cost reduction could add 15-20 percentage points to gross margin — potentially pushing margin to 65-70%

So cash burn looks like this

Post restructuring that becomes approximately £2m minus £650-790k = £1.2-1.35m net burn — but that’s on 2025 revenue levels. With 2026 revenue clearly tracking significantly higher, the actual cash consumption should be materially lower still.

Maybe it’s because he’s down £50M and buying the dip ain’t worked for his fund ?

He is after all answerable to his LP’s

What Opti management own on top of the 30%

Some skin in the game here

You could see the PBX stake heading to be equal to Opti m/cap at this rate

SBTX is bunce on top / cash in hand

Core Opti is a free ride

4.1% stake

If Q1 2026 order book is £1.3m and at 54% gross margin that’s so £700k gross profit in a single quarter against total opex running at roughly £500k per quarter in 2025

Ballpark depreciation / share comp etc is £25k a qtr ?

Any comments

Opti own 30% of PBX

Key Highlights

· Sales +45% to £2.73m (2024: £1.88m)

· Gross Profit +46% to £1.48m (2024: £997,000)

· EBITDA loss from continuing operations down 34% to £426,000* (2024: £642,000*)

· Gross Profit margin improved to 54% (2024: 53%)

· Group remains fully funded with a cash balance of £1.27m

· 10 new products launched during the year

During Q1 2026 the Group has achieved profitability

· Outlook positive with a record Q1 2026 order book +110% at £1.3m

· Strong momentum in China, with increasing sales channels being delivered by partner Kemin China Technology

· Recent launch of new women's health products is gaining further tangible traction - well placed to target an accessible B2B market worth more than $5 billion

· Planned (and funded) expansion in new metabolic health areas to include prediabetes studies

· Further margin improvement has been achieved, driven by CMO optimisation

ASOS have said today no FCF + in 2026, they have until Sept 2027 at best to generate FCF, arguably as Zca says 12 months headroom on the audit, they can then negotiate hopefully decent ReFi term

‘Broadly neutral free cash flow.’

So that’s 2026, they have one more year 2027 to generate cash to deal with the £1/4B loan which exceeds £M/cap, they could ReFi but CB holders are going to be brutal

Suggest this is a key point, they need FCF + to have a chance to be able to negotiate from strength

Thanks Martinu

Guess the one off legal costs re PBX is the unknown £ ?

ASOS has £73.6m of convertible bonds maturing April 2026 and £253m of convertible bonds maturing September 2028.

So the £73.6m is the immediate problem — that’s due this month essentially cash on the balance sheet will sort that out

£253m in 2028 is the bigger structural overhang hanging over the business.

They did refinance the asset backed loan facility in November 2025 into a secured term loan, extending to 2030 and adding £87.5m of additional liquidity headroom. But that doesn’t solve the convertible bond maturities.

With a market cap of only ~£270m, having £253m of bonds to refinance by 2028 whilst loss-making and producing very little FCF + has to be what the market is concerned about on the equity side

Is the share price now back to its 2001 IPO price of £2 ?

Last one

SA has 10% equity do has skin here, his salary is £140k

Appreciate any posters who can challenge the numbers / data below, handy to see if I am missing something ?