The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
My take on this —- they have focussed on affordability and as such put efforts into making existing sites as efficient as possible, building out capacity where possible. This is working at top line and makes it cash generative as well…. But they need to run it this way for a while as they don’t want capital intensive refits anytime soon… if you take off £2.3M to account the depreciation change then they were lower profit year on year… so yes they are massaging the numbers again… but think the overall strategy is the right one…. Keep it affordable and careful capex allocation
This was in the RNS….
The Board has re-assessed the useful life of certain of the Group's fixed assets, notably games and leasehold improvements. Previously, games in both Escape Hunt® and in Boom Battle Bar® were depreciated over two years, whilst leasehold improvements were depreciated over five years. The success of the early Escape Hunt sites which have continued to show strong like for like growth with the original games installed over five years ago, has provided strong evidence that the policy for games was aggressive. The games are regularly maintained with maintenance costs expensed as incurred. The Board has therefore re-assessed the useful life of games to be five years for games in both Escape Hunt® and Boom. Similarly, the leasehold improvements were being depreciated over five years on the basis that the original Escape Hunt® leases had five-year break clauses. Boom sites generally have break clauses after ten years and the success of Escape Hunt® has given confidence that the useful life of leasehold improvements is expected to be at least ten years. The change is regarded as a change in estimate rather than a change in accounting policy. As such, no change has been made to prior year numbers, but depreciation in the twelve months to 31 December 2023 reflects the new estimates. The impact in the current period has been a reduction in depreciation of approximately £2.3m compared to what would have been charged under the previous estimates.
See your point but this isn’t year end so let’s see how 31st March looks
Amapa is making progress…. Slowly but surely…. Commodities starting to tick up….
Shorts closing today
Here comes the sun, doo-doo-doo-doo
Here comes the sun
And I say, it's alright
Little darlin', it's been a long, cold, lonely winter
Little darlin', it feels like years since it's been here
Here comes the sun
Here comes the sun
And I say, it's alright
Little darlin', the smile's returning to their faces
Little darlin', it seems like years since it's been here
Here comes the sun
Here comes the sun
And I say, it's alright
Would love to see forward earnings update.
At &23m market cap … if can get to £5m profit it will be less than 5 times
Yes they should now be into profitability after financing this year regardless of the way they cut the accounts… but more scale needed to make profit really meaningful so more reinvestment of cash needed to build the pipeline. Feels like this is the pivotal year coming
They have leasing costs - profit after tax & financing is loss. They also stretched the timeframe for depreciation. My take though is that it’s generating cash —- so overall looks decent —- a good bolt on acquisition for a PubCo or entertainment company
Hey trolls, price is trading higher, not lower.
Your move next
Why so?
I don’t think so
Imagine the RNS to announce dual listing. At some point that is coming
Ok, so subscribed in the retail offer to double my holding. Same company funded & same opportunity… if sentiment returns actually in a better position. And 2 years where funding won’t be the concern.
Not to forget a bunch of shorters who need to buy back
No interview until retail offer fully closed would be my thought
Neil bell left the company. Keep up!!
Generally that’s a bit rampy considering the placing but a ballsy call that it will 3 bag from here and easily
That’s why I took part in the placing…. Although crapping myself about more risk in this casino…. And kicking myself for not bailing at £1.60
What is the learning—— BP and IP’s set the price and value of a company not a bunch of retail investors….. and that’s why we see 50p regardless of the price it was 6 months back. You want a lot of cash…. You don’t get it without offering a risk adjusted return…. Even partnership deals won’t necessarily stump up £10’s millions upfront investment.
Everything would then seem to then hinge on a partner for phase 3… as that’s bigger trials and bigger expense. And also that’s where Nasdaq comes into it