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In a different time zone, so just read report and comments.
The report is not by an independent adviser. so Buy expected, as usual.
Several errors, as Itt said free float looks incorrect. In appendices the BS does not add up, for 2020A worrying as an actual, and 2021E, maybe rounding or not!
Is this company a hardware supplier, which it seems on a reducing gross margin to 45% rather than softweare with higher margins,
The company is still forecasting losses in 2022 with extremely low cash, bumping along the bottom.
Is this an Indian company, as all other older territories have vanished. womnder why?
A major risk to show more value, unless mergeractivity
The £400k was, as ITT also said, most likely to allow DD to be undertaken. It must have taken longer than planned, Will the potential purchaser be Indian?
No terms of the loan made public,
Slippery slope of M & A in a global Covid arena!
The RNS was very short on facts, as is usual with Cyan. There must have been a big queue of potential lenders offering this facility. Surprise after much due diligence lasting all of 10 seconds, the successful winner was the directors. No details, or whether it is convertible, etc
The beginning of the end or the start of M & A!
Heather comment was a standard response trotted out by many companies. Not specific for Cyan.
The presentation gave no more details, minimal vision and left me with the feeling this company is run for the benefit of the directors rather than shareholders.
Look at the share price deterioration over the years, with no actions to revitalise the company. And make it a prospect for an acquisition etc
IMO
Hi itt,
I suspect it wasn't CC decision, but Deloittes had had enough. See my bb comment yesterday 13.47. Deloittes had been continually embarrassed by the lack of the company meeting plans and they had accepted company comments and actions which had been reversed later as they were not true.
RSM already have a tainted rep. so a good match for cc.
I am frequently overseas so only view at irregular intervals,
Deloittes, I assume were totally embarrassed by the lack of progress, the non orders that the company keep including, e.g. Iran, Bangladesh and Ukraine and the major stock write down which seems to have been missed in previous years. Even the lack of progress in India and other markets. It's hardly a major company for them.
Not surprised Deloittes did not tender, they had probably had "a quiet word" with the company, to confirm they were not continuing.
Agree with others, the appointment of RSM, who have there own problems, and year end date change are major red flags.
When will the company go private, as surely that is where it's heading. A major convertible loan will arrive, and the company will have no choice but to ................. IMO/DYOR
Not certain that Messrs Stamp and Powell would want to run the company. They have both lost a fortune backing the inept management.
The order book is pure fiction, with dubious gross values allocated to each contract.
The December 2019 forecasts contain a figure of £3.4 m for accounts receivable, yet only £2.3m of revenues. Hardly credible. Also, having written off £1m of inventory last financial year, the inventory has been built up again to a high level.
Not certain why new investors have paid out good money, but I suspect they have only undertaken limited if any due diligence, judging by some of the comments on this Board, which are clearly pie in the sky wishing, rather than based on factual analysis.
IMHO. Go for a prepack administration to get out of the liabilities, and take into the new company, the minimal assets the company still has. But not take the management, leave them on the gravy train, heading off into oblivion.
The company has several options, away from an AIM listing.
Go private in UK or India, major wipe out of existing shareholders.
Be listed on the Mumbai stock exchange, or similiar Indian exchange. Unlikely as to beauracratic.
Capital Restructure. This will not benefit existing shareholders
Accept bid from competitor or similiar in India or EUrope. As all the major shareholders have long since written off there shares, they will not care. So a minor bid will succeed, and directors will get a new contract and equity.
Execute a prepack agreement, again likely to wipe out all existing shareholders.
Either way forwards,existing shareholders lose out and if done "correctly" the Board will continue on the gravy train!
Being a UK AIM company with the majority of their sales coming from India, it didn't ring true with a December year end, so probably hence the change. However, It also gives them the opportunity to go for another 3 months when hopefully they will have something to report, Or Not!!!
Deloittes must be relieved, as they seemed to miss the major inventory write off of $1m until December 2018 and still allowed the rather dubious order book including Iran and NIK to be used despite them not being genuine orders. BI in China as well!!!!!
I hope the company did their due diligence on RSM, as they have had a questionable 2019
- Institute of Chartered Accountants, issued a scathing report on RSM lack of quality control
- Numerous audit violations
- Appointment by Sports Direct as there auditors..... Say no more!!!!
Yet another negative twist by the company, at the expense of the shareholders
It's good the sales / trading stopped at 4.30 otherwise, continuing major sales in the last hour would have breached the 2p level for the first time.
A clearout, ready to take the company private, rather than be on the AIM casino.
Hi itt,
When suppliers are paid via shares, they have the choice to hold or sell into the market immediately. So whilst they may get more shares if they sell straight away, as the SP is lower, they do not gain (or lose!). If they hold and the price goes up, then they do gain, but that's a gamble and many companies cannot speculate on future gains. Depends on their accounting policies etc.
The RNS is usually drafted and agreed by the Board then agreed with the Advisors, Arden! It would also be usual for others to have a view into it, e.g. Auditors, PR etc
So a long way of saying YJ may get shares.
What a shambles! India is always a delay, that's the nature of the country.
Order book vastly overstated, what a surprise, did the NIK orders actually exist.?
No Governance by non execs and a total lack of financial control.
The only positive light is that this company may be taken private. The only winners will be the directors. Major severance packages!
OMG. If these two were going to turn the company around, or at least make break even. O They would have done it years ago. As both with the company many years.
This is a scraping the barrel summary. .No positives to take home. No mention of the large order book and how or when it will be delivered. Assume that as well as Iran, the Ukrainian and Bangladesh contracts are dead.
AR total remains high, so either not delivered, not in accordance with contract, or simply not collectible.
But still the gravy train rolls on, whilst shareholders lose money, and the weak Board does nothing.
What a mess!