Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Batfink, The 'red' trades this afternoon were a result of the ask being held at 1.95 for much of the period. With a 'bid' price at 1.80 and 'ask' at 1.95 any trade below 1.875 will appear to be a sell. The afternoon session was actually very positive for REDS with a net £46k bought. This is not counting the larger trades at 1.85 which I assume to be roll-overs or mm to mm trades, (although they were large trades, they had a zero effect on the trade price at the time) I am very pleased that we haven't 'sold on news' today, and the clearance of the traders this morning should allow some improvement in the share price heading into October in my opinion.
I agree Random, what the update does is to reduce much of the uncertainty which has held REDS back. A number of traders hoping for a quick buck have jumped this morning, but interesting to see a buyer picking up 2.5million tranches, which has mopped up much of the selling pressure. Going forward, much to be positive about. Robust new business enquiries= can be selective to maximise margin. Increased margin = straight onto the bottom line recurring revenue base = low cost to business (sales cost mainly in year 1) Connect IB generating cross selling opportunities = low cost additional revenue. Leaner, fitter business= lean businesses can generate 25% productivity gains and cut waste/ down time significantly. Significant opportunities moving forward. What's not to like??!
2 months 'closed period' for Directors, prior to the release of results. This refers to buying or selling shares held.
Great to see the emphasis on margin...... mentioned 3 times in the report!!
Hi Melody, A healthy business should turn down business that doesn't generate the right margin. I agree that it appeared from the balance sheet that REDS were busy chasing turnover, it was unclear why. Possibly to benefit from after-sales which appeared more lucrative. If that was the case, this will appear as better bottom line growth in these figures. An alternative would be that they weren't pricing correctly and didn't have a grip on costs. I would be more than happy to see a slower increase in revenue in exchange for an improved margin. Should be interesting tomorrow, and provide a better insight as to the effectiveness of the new management team.
Last year's figures showed redstone part of the business growing revenue by 38% if I remember correctly? This was with considerable disruption and lack of full focus. I would hope to see at least a continuation of this strong trend, coupled with the need to strengthen the management team recently, due to demand, (not seen in a business struggling for turnover) I appreciate that Stokenchurch exit won't impact these figures, but will free cash moving forward. Fingers crossed its not 'jam tomorrow' tomorrow, but tangible, bottom line growth!
Not sure if this trading update on Monday is the actual interims, or just an update on progress without figures attached? The published interims have historically been produced later in the year in October, but I would imagine the business is somewhat more straightforward now! If numbers are being printed, I would like to see around 25-35m turnover from Redstone for the 6 months to the end of July, (to show that growth is continuing/ accelerating. I am particularly keen to see that net profit has improved... perhaps 1.5-2m? This would show the market that REDS haven't 'bought' turnover, and have a sustainable business model that would be worthy of investing in. In my opinion the 'cost of sales' should be rising slowly as the group expands, but with every business, a 'sweet spot' exists where the head office and sales functions are capable of achieving more turnover, with the same facilities and staff. Once REDS can prove it is profitable and can achieve an improving margin in its fast moving, expanding sector, and isn't requiring cash top-ups for working capital, then a re-rate will follow. With what we know, a market cap of around £30m seems fair, (for now), and I am not expecting 10p any time soon with the huge number of shares now in issue, but some potential to continue the recent run, assuming tomorrow's news is positive.
I posted the comments below, after the finals in the old COMS thread: 'Smart building revenue increased by £6.8m, gross profit from these operations only added £0.2m. This suggests buying business, perhaps to make money in the networking/ management? Probably why Connect IB was bought. Profit was not forthcoming due to (one-off) integration/ transactional costs. Very hard to value a business accurately when buying/ selling assets. (see old COMS in D.B days) Net profit, without one-offs of £0.7m on £40m of sales needs improving, average ftse 250 company achieves 10% or £4m on the same turnover. I am happy holding for the next set of figures, which should show improved margins assuming that integration has gone well, and an enhanced revenue performance. Remember, Mark Braund will want to draw a line under previous management and will want to show what he can do. Every new CEO/CFO will want to bury margin issues and write-off's in the previous years figures, and show a turn around, I am certain Mark is no different.' I hope we see continued revenue growth, but with a much improved margin. No integration/ transactional costs this time round, and some talk about strong order book/ contract news. Any opinions out there?
This rise looks as though it has legs...... it would be encouraging to see a move over 1.75. Momentum is with us it seems!
read 'knew' not new!
Well it does look as though the mm's last week new the sell order had been cleared. 500K buyer now. I guess for now, the pressure is on the upside.
There has been a large holder reducing in 500k tranches these last few weeks, if this overhang is clear I would expect a good rebound too. Looking at the price action today, the mm's seem to think the reduction is over. Fingers crossed, we'll soon know!
Some concerns highlighted in the recent final results: Smart building revenue increased by £6.8m, gross profit from these operations only added £0.2m. This suggests buying business, perhaps to make money in the networking/ management? Probably why Connect IB was bought. Profit was not forthcoming due to (one-off) integration/ transactional costs. Very hard to value a business accurately when buying/ selling assets. (see old COMS in D.B days) Net profit, without one-offs of £0.7m on £40m of sales needs improving, average ftse 250 company achieves 10% or £4m on the same turnover. I am happy holding for the next set of figures, which should show improved margins assuming that integration has gone well, and an enhanced revenue performance. Remember, Mark Braund will want to draw a line under previous management and will want to show what he can do. Every new CEO/CFO will want to bury margin issues and write-off's in the previous years figures, and show a turn around, I am certain Mark is no different.
http://postimg.org/image/mobpg289j/ Getting interesting again looking at long term support and resistance. The current push down is being brought about by low volume, and no real conviction IMO. Hopefully the next move up will take us past the lowering resistance level at around 1.70. Strong support at current bid price (1.55) and again at around 1.48-1.50 if it doesn't hold. I am not alone in joining dots! and many traders follow similar patterns, this is what will make the break-out (should it occur) be accompanied by good volume. Obviously it can break south or north, but generally follows the trend leading into the triangle formation, which in this case was up. Good luck.
Anybody know what just happened? My guess is we broke through the falling resistance from the last push over 2p, which can only be good news!
Well, just for comedy value. I challenge anyone to have bought COMS shares higher than my spectacularly timed buy at 16.29 date:03.02.14. 26666 shares @ 11.25p. My second buy of the day over 10p! Let's just say the RNS the next morning was unwelcome!
It got personal!!! Good luck with what you decide to do. I think I made Coms one of my projects, not finished yet either......
I feel your pain. I have looked up today and found to my horror that since 2014 I have made 62 trades in COMS, selling and buying tranches in order to reduce my average. I have probably personally paid for my trading account's Christmas party! 2 years and 4 months after my initial 'dabble', and I have 40x the number of shares I started with! For the first time in years I can see a way to this investment achieving its aim of providing funds for travel.
Couple of mil just picked up has seen us through the 1.62 resistance.
Simply to make your home interactive. The options are ever more interesting. Heating is becoming more and more linked to need, you can get your heating to turn on when you are about to arrive home simply by interacting with your phone, you can programme your fridge to reorder food, your lights to turn off when you leave the room etc. This is what COMS does in offices, parking spaces can be designated by need not by person, heating requirements adjusted so that rooms heat up when they are about to be used, computers coded to have the specific interface for each user recognised when they log in, allowing hot desking. The options are endless! What is brilliant is that the technology saves money. In other words if you are an office manager and you are not embracing this technology you will have to explain to your bosses why you haven't adopted the technology and saved the company money!! I have a sales business, and selling is all about making the buyer look good to his bosses at limited risk. This technology ticks all the boxes. 😀