RE: Risks and rewards31 Mar 2022 15:47
LTbeliever you said - If loss making, why would the lender risk 24 mln of hard cash.
Not being patronising but I assume you're hazy about how finance (both personal and business) works. The stronger your position the better terms you get which is why for instance desperate people whom no one else will lend to go to loan sharks and have exorbitant rates. The same applies to businesses and the deal we have secured illustrates we are not in a strong position. I understand needs must and we need to accelerate growth and have access to cash to secure large deals. That said, why did we drawdown £4m so soon when we pay high interest on it, likely in 12 months it will be some £600k on top. Surely we had cash for the cash bit of the acquisition and the other £3.5m for the bits mentioned in the RNS (you suggested we had £6m cash). Sure arrange the loan but why drawdown if we had the cash you suggested?
I think we're burning too much cash, too many people now and we really need to accelerate what we do. I bet we've spunked more than we wanted on skintrustclub marketing.
I also suggest labskin didn't grow double digit last year and the growth was through MWG. Remember labskin did circa £4m in 2020.
Anyway, the tech is amazing and the opportunity and potential too I just hope we have the right man leading the group and he hasn't spread us too thin trying to spin too many plates.