Adding up...19 Jul 2024 18:31
"Sales guidance for 2024 remains in line with market estimates - £17.5m ["Management have detailed plans in place to continue to drive all three areas with the pace of progress determining a current spread in expected revenues for FY 2024 of between £17.5 million and £22 million." : in the Proposed Placing document 1st May] - as current output levels are delivering to our revised customer needs.
We are pleased to report that production of discs has doubled in the four weeks ended 12 July 2024 from the average levels achieved over the previous 5 months, and importantly, on a consistent daily basis.
Total sales for H1 24 were £4.6m, including the impact of no pre-production engineering revenues due to the revision to the Company's revenue recognition policy. We anticipate recognising £1.7m in engineering sales during H2 24."
Implies to me - and Maths O level is very far behind me - that they expect to increase production revenue from £4.6m in H1 to £11.2m in H2 (with the engineering sales on top), a rise of 143%.
If anyone knows what these engineering sales of £1.7m are I would be interested.
And given that they are predicting revenues at exactly the lower limit of the placing doc, I'm wondering which is more likely:
EITHER they don't want to continue the panic by predicting below, and would rather undershoot by a small slice at the time and say "But look how much we've improved anyway."
OR they don't want to continue the panic by predicting outside the lines, but are putting it at the bottom limit in the hopes of over delivering next January - and then doing a raise.
Do any of you with boardroom experience know which is more likely?
NB the £4.6m include 2 weeks of the recently improved run-rate so the percentage increase could be said to look even better.
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