Member Info for Phrontist

A sub-contractor was paid HK$8.5 million, about £850,000, half of the annual receipts.

A substantial sum for a company that declared £540,000 losses for 12 months to March 2023.

The previous year’s losses were £390,000.

There is a lot of cash being moved about that shareholders don’t really see the detail of.

Salaries, ‘plans’ and housing cost £500,000.

Total staff was 11 persons.

The directors took about £320,000. The Chairman had £260K out of this.

There were 5 other directors, on a pittance it seems.

And only 5 ‘working’ employees on average salary of £36,000 each.

Looking at Google Finance, all the historic accounts info is in HKD.

But the main SP Graph is in GBX (UK pence).

Note 10 of these HK Dollars to a UK £.

Today the LSE MC for RC365 is GBP £96m (note not GBX).

It just seems a very high figure.

END

Thank you Moneymunch.

Please read the Annual Report from the RC365plc.com web site.

The following is my best efforts on a few points from this Report.

Please check before you draw conclusions.

I am using 10 HK$ to 1 £ sterling.

At 31 March 2023, the end of RC365 financial year, the Chairman owned 69% of the equity.

At 25 July 2023, date of the Annual Report & Accounts, the Chairman owned 51% of the equity.

Just over 50% shares were transferred into a limited company LYS Ltd of unknown ownership.

Was the 18% sold?

This accounts for the 600% SP rise following the 2023 Accounts.

Then a 77% drop over 7 weeks to accommodate a £20m share sell off.

A likely 4 times gain or more in a year for the Chairman.

The group had an annual revenue of about HK$16m = £1.6m

Note 2.3 of the Audited Report & Accounts says:

The Group incurred a loss of HK$5,378,451 (= £0.5m) for the year ended 31 March 2023. This condition indicates the existence of a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern.

continued

On Google Finance, RC365 have no published financials for almost 18 months.

Why, I do not know. But something is not right.

Hello Brom, I think the original leases were selected and successfully bid for by PB at BEX before 88E even had that name and it's then new MD, Dave. Sometime in 2014?

We were (informally) advised they were transferred to 88E when the 88E-BEX agreement was signed.

Phrontist

Last 5 years share price:

WPP down 42%

S4 down 48%

Over 5 years:

WPP down 30%

S4 Capital down 40%

Not much difference really

Resigned = reigned back

S4 have been Covid and long Covid....

Also flu scare with variants (my jab failed)

Russia invasion of Ukraine

I agree everyone else has been through the same...

But for S4 they had just started on the big expansion program, and could not predict 3.5 terrible years of national and international business disruption from the norm.

Maybe SMS should have resigned back when Covid went on its global rampage, but who could know the future?

Phrontist

IMHO SFOR is easily a £2+ share now.

Sales have been rising consistently and substantially.

EBITDA shows the group is trading well by generating substantial margins on work delivered.

Yes the SP is going onwards and upwards now

Likely for many years.

SMS was on TV the other day, looked healthy and happy, like a man soon to make a few £hundred for himself.

The media like him, a good sign 😁

Phrontist

Barbocoa

Can a business improve, or is S4 stuck in a rut for ever?

Getting Half Year preliminary accounts out within a month (with computers) should not be such a big deal.

With so many posters saying 'register on a USA stock exchange '.

S4 really need to show some financial management. The 2022 saga was a disgrace.

Well, they have had plenty of time to get on top of Accounts Dept, now let's see some results.

Surely SMS has sorted this issue (and himself) out, demonstrating that S4 really is the dynamic winner he originally promised!

Phrontist

I agree Splunge, the future looks good.

Will we get H1 2023 Preliminary report?

By the end of July?

If sales are still developing well and EBITDA is healthy, then S4 shares will be in strong demand.

Between 2p and 3p....

Phrontist

We need more (some) personal contact with the 88E management.

In June 2022 Burgundy Xploration was dissolved. Does this mean they no longer have approx 30% rights to Icewine region oil and gas?

Then, BX was reinstated two months later, it seems due to taxation reasons.

So Mr 88E BoD, where do we stand on this issue.

Michael McFarlane was Paul Basinski 's partner at BX, and became the President following PB's sad death following illness.

He was a Director of the Alaska Icewine subsidiary of 88E, but at my last look, had resigned and left.

MM was and likely still is a significant mover in oil exploration and potentially extremely useful to 88E.

I asked DW about this a year or two ago, he did not reply. Soon after DW resigned.

Has Ashley Gilbert made a visit to UK investors, as in our past annual visits with presentation?

Should we request him to make a trip to the City? After all we are about 75% of shareholders by value.

We need to talk.

Phrontist

I thought 88E and PANR were both going to edge upwards based on shared 'successful' drills on the same oil find.

Today PANR dropped 27% to 10.5p, not 15 times down from a 1-year peak.

I still think a marriage of 88E and PANR could be a smart move. Could save substantial salary costs with close of Aussie Office.

Phrontist

NigeCo

Perhaps there is a large ongoing SELL instruction going on, which doesn't show until the selling is complete?

Sorry, mistyped on mobile!

So why is the SP down to 145p

Great business but what is going on?

Phrontist

I don't think SMS resigning is a good idea.

He has built a fundamentally sound business strategy.

But like Margaret Thatcher, he tried to move too fast.

Now age, health, personal greed, a list of factors build up against him.

The situation here has some parallels with Elon Musk having to vacate CEO position at Twitter and himself to take a backroom director position. Only then can a good company become a great company. The new CEO has arrived, many good things are happening, future success seems likely.

So, I am suggesting that SMS should announce that the search is on for his replacement as CEO. Perhaps within six months. And whilst he is still available for a mentored transition to a younger, more energetic leader for the next 10 years.

I am sure the SP will rise on the back of steady fund manager lead investment.

IMHO Phrontist

This last season has not managed the annual Pump and Dump.

PANR have dropped from 140p to 17p in spite of successful work in progress. Why? Because the North Slopes require more work than a single Drill for 'success'. It seems to me that once a well starts to look viable, it will take another three years to become commercial.

On this basis 88E are two years behind PANR, at best. And PANR struggle to drive a definite oil find into a commercial oil flow.

I don't wish to be negative. But certainly I miss the annual 88E London Presentation. In fact, I have never met Dave Wall's successor. Observing on Yahoo Finance that DW owns 120 million shares - he must still 'believe'.

P

The market has realised that there is a big difference between 'finding oil' and 'making a commercial oil find'.

88E has 'found oil' every year. But there has always been a reason for 'not commercial '.

Water, bitumin, sand, depth, porosity, permeability, gaseous...

Is this Alaska job too big for 88E?

P

A decision to Buy or Sell when the SP=0.377p, is not really based on the 0.377 value (which seems low)....

The decision should be based on the MC =£75 million...

Is 88E worth £75million?

When they have almost no cash....

Have never succeeded in selling any oil from Alaska...

Seem to jump from region to region, never focused on one area....

Buy or Sell or Hold is a difficult decision.

Personally I think 88E should Sell the company to a larger oil exploration company with deeper pockets and a successful exploration history.

But who would pay £75million?

P