Member Info for Retireby40

Paul, I couldn’t agree more than a balanced board with opposing views is healthy and so much better than a board full of happy clappers. That said I think some of the posts this morning were inaccurate and one accusatory so I felt obliged to call them out. I’m sure muggins has posted many valuable posts but I had to correct this morning’s inaccurate posts.

Anyway, a big week ahead and am looking forward to Thursday. The deal will go through for sure and the combined group with the synergies, saving on listing and other admin costs makes sense. An exciting time for both and even more so when DeepVerge is confirmed and trading hopefully end of October.

I think you’re being generous, Paul as muggins posts aren’t always accurate. See below.

Muggins wrote -
We were promised that orders and sale were up by 40%+. They are actually DOWN 62%.

My reply - On 30 March We were told ORDERS of reagents were up 48% in Q1 so we were not told that sales were up at all. Also in today’s RNS we were told -
The increased order levels, seen in H1, are currently being prepared for shipping in H2 2020.

Therefore The above means the increased reagent orders will be invoiced shortly so in H2 and and the revenue will be realised in H2. Therefore his post is highly inaccurate.

Now this really annoyed me, a sly accusation which is inaccurate and bang out of order. Muggins on SKIN BB said -
A more interesting question is why SKIN wants to be saddled to this perpetually lose making company. Surely nothing to do with the 20m MW shares (and to be converted into SKIN shares) that are triggered for GB by the takeover.

I replied -
No he will receive shares in DeepVerge that will have acquired MWG. If it’s such a bad deal the motivation isn’t to receive shares that won’t be worth a lot and will in fact by your reckoning reduce the value of his current holding. Again, you seem to be making stuff up.

I agree the results are poor but he’s been in place 3 months of H1 so the turnaround is embryonic and the merger should do well for all IMO.

No he will receive shares in DeepVerge that will have acquired MWG. If it’s such a bad deal the motivation isn’t to receive shares that won’t be worth a lot and will in fact by your reckoning reduce the value of his current number.

Let’s agree to disagree but throwing half baked accusations isn’t good.

Muggins you seem bitter and a little disingenuous.

You said sales were meant to be up 48% but were down when they were only talking reagent orders in Q1 and you can see a lot is being shipped this half so revenue will appear H2.

You implied GB wants to buy a failing co for 20m shares. An additional 20m shares in a new co likely to fail is pointless and will reduce the value of existing holding. You should have the contrition to admit you’re wrong.

Also, GB et al only been in place for half of H1. Anyway, the deal will go through and let’s see what Thursday brings.

Best of luck

A subtle or not-so subtle accusation there. GB knows MWG has super tech which is protected and will do what he did with SKIN is turnaround a business that needs help. The collaboration approach will work and you only have to see the recent award in China the products are superb but they need to create a sustainable business model and that’s what GB will do.

Anyway, any doubt the takeover won’t go through is now gone. Onwards and upwards.

Oh and why would GB want 20m more shares in a failing co?! Have 20m fewer shares in a successful company then? Says to be he’s confident as the other directors are that the merger will work

Muggins-

You implied they’d misled investors and used the 30 March RNS as your evidence and that was misleading. The turnaround is embryonic but wirh Admin costs massively reduced and the comprehensive loss reduced they’re going in the right direction.

Clearly a lot of the increased reagents will be shipped this half so those revenues will appear here but yeah any MWG holders voting against the takeover need help.

You implied they’d misled investors and used the 30 March RNS as your evidence and that was misleading. The turnaround is embryonic but wirh Admin costs massively reduced and the comprehensive loss reduced they’re going in the right direction.

Clearly a lot of the increased reagents will be shipped this half so those revenues will appear here but yeah any MWG holders voting against the takeover need help.

Admin costs are down from £1.6m to £0.9m which is good in poor results at the start of a turnaround.

Sales of reagents up in Q1, not sales full stop. On 30 March they said -

Modern Water announces that orders for water contamination detection bacteria consumables have increased by 46% in Q1 2020 compared to Q1 2019.

Some of this would have been fulfilled in H1 and by the sounds of it a fair bit needed producing in the new lab space and will be shipped and therefore billed this half as below in today’s RNS.

The increased order levels, seen in H1, are currently being prepared for shipping in H2 2020.

On 30 March they said -

Modern Water announces that orders for water contamination detection bacteria consumables have increased by 46% in Q1 2020 compared to Q1 2019.

Some of this would have been fulfilled in H1 and by the sounds of it a fair bit needed producing in the new lab space and will be shipped and therefore billed this half as below in today’s RNS.

The increased order levels, seen in H1, are currently being prepared for shipping in H2 2020.

I think you’ll find it was a 40% increase in sales of reagents, not sales overall. I made the same mistake.

Admin costs are massively down from £1.6m to £0.9m but yeah not pretty and illustrates why new direction was needed. Takeover should be even more nailed on so a positive.

The MMs didn’t go that low there was an odd executed sell at 2.55p I think you mean

Given the way the CEO operates with a partnership model using specialists and having a smaller piece of a much larger pie I would expect once the prototype has been tested with live virus we’ll hear of OEMs. There should be significant global demand so I imagine we’ll have manufacturers in Europe, the Americas and Asia. Remember the footprint SKIN and MWG has in these regions.

Really hope we get an RNS on or before the AGM.

cash down from £1.2m to £255k in 6 months on £1m revenues.

If revenue was £1m and £1m was burnt on same costs they need turnover of £2m for cash flow BE for H2. No doubt costs may rise but they’re expecting to hit more than £2m having done £1m this Q and end of year cos spend the remainder of their budgets. Looking good to me.

From advfn - I think some got confused with £2m I’m booked sales for the year in Q1
over £2m in revenue Q1. The booked sales are with large cos who have service agreements so the invoices will be throughout the year. The last Q is always the largest with cos using budgets before YE and £4m is still guided due to £1m Q3 and remember last year was £1m FY.
With the warrants there is clearly decent cash on the balance sheet as well as a loan facility. As mentioned hopefully we can a solid RNS on the real-time monitoring progress. That’s the big one and by the sounds of the Chairman’s statements it’s on track.

£220m market cap looks too much and given Richards has said every year for several years next year will see genuine momentum. It’s jam tomorrow and always has been. Too many false dawns. They said cloud migration was on the up H1, $3.6m says otherwise.

The board’s (6 of 162 staff) remuneration in FY19 was over 10% of revenue - Richards’ package was nearly 6% of revenue which has fallen from $19.6m in 2017 to $17m in 2018 & $16.2m last year with losses increasing from $13.5m to $28.3m in same period. To even match the pathetic $16.2m of 2019 they’ll have to do $12.6m H2 so over 3 times H1 and losses will be higher.

It is criminal. Richards has milked this and good to see the CFO sell shares in July at 620p. They are taking the ****. It’s criminal.

Definitely wrong board!

https://www.gov.uk/government/publications/water-and-treated-water/water-and-treated-water

See under heading: Quality Water Delivery
“The UK has over 416,175 kms of water mains and more than 393,460 kms of sewers – combined, that’s enough to stretch TO THE MOON AND BACK.”

Many US states getting behind it too-

https://www.wxyz.com/news/coronavirus/state-announces-10m-grant-for-local-governments-to-test-sewage-for-the-coronavirus?_amp=true&__twitter_impression=true

https://www.gov.uk/government/publications/water-and-treated-water/water-and-treated-water

See under heading: Quality Water Delivery
“The UK has over 416,175 kms of water mains and more than 393,460 kms of sewers – combined, that’s enough to stretch TO THE MOON AND BACK.”

Many US states getting behind it too-

https://www.wxyz.com/news/coronavirus/state-announces-10m-grant-for-local-governments-to-test-sewage-for-the-coronavirus?_amp=true&__twitter_impression=true

Whether cruise cos thought it a good idea or not the fact is their customers will demand it so they’ll have little choice.

I imagine it’ll be the status quo once launched on cruise ships, care homes, resorts, hotels etc. It should also be standard in water cos plants and globally.

Turnover of $3.6m is shocking and it’s yet more jam tomorrow. Richards’ half year package is 1.7th of half year revenue. Absolute disgrace.

Johnson doesn’t know how many kids he’s got or his arse fr
His elbow so trying to analyse the **** that comes out of his pie hole is pointless.

We’ll have an update on or before a week on Monday and always worthwhile speculating on many things but not the **** that comes out of that charlatan’s mouth.