Member Info for Savage_KeyboardR

TerryM1 - you said "it is not good but I believe AH will succeed and turn this around eventually and IMO insolvency at this point is scaremongering."

IMV it's not scaremongering and because UK is in a really bad economic shape (thanks to 14yrs of Tory decline) there's very real likelihood that due to consumer + business cutbacks there will be some notable businesses which will go to the wall under that additional pressure.

CPI had precarious financials at the HY24 results, and now with this trading update they're looking much, much worse; a sharp UK downturn IMO could cause CPI to further haemorrhage cash, something we know from this update already happening. There are only so many avenues/options available for struggling businesses to rapidly plug cash gaps in the order of magnitude of £50-£225million+, and it becomes much more difficult if the economy is in distress too.

I'm not saying CPI will go bust tomorrow, that would be scaremongering but what I am saying is it's most certainly already in very acute distress.

DOOM2 - tbf... that's definitely an option. Sensible discussion at long last!

Which begs the question... Who would want to buy it? - Who could gain advantage from buying the cesspit that is CPI?🤷 - serious question mind because if there is a takeover that will have massive repercussions for PI's here.

TerryM1 - look being super direct & frank... I literally have not got a flippin' scooby doo what you're talking about.

You accused me of ignoring profit - I never did such a thing, I was talking about Revenue but that doesn't equate to me having disregard for profits being booked by a business.

You added 2+2 and got = 5

I do not know any other method to convey this, so forgive this direct approach should it cause offense.

BT was on the hook for upto £1.3bn liabilities - However, it has won the case & defended itself from a potential big ticket cost:

https://www.catribunal.org.uk/sites/cat/files/2024-12/13817721%20Justin%20Le%20Patourel%20v%20BT%20Group%20PLC%20-%20Judgment%20%2019%20Dec%202024.pdf

ValueS - I view 80p+ as being inevitable sometime within 2025 Calendar Year, and possibly 90p+ as it heads into 2026.

TerryM1 - "Without the RI it would have gone bust"

Yes, that's probably true given what many have said on here (I don't specifically know this for sure, as I haven't delved into the accounts published for the particular period when this was taking place - only the general overview numbers).

So you agree that back them JL had to reach for the RI lever?

i.e. to maintain cashflow and therefore solvency

With this knowledge... I suggest CPI has now entered a similarly dangerous period of time (maybe not this very month but... quite possibly in months or some months ahead).

This thread I started because I asked the open question: "Will AH tap shareholders for cash?"

Do you think AH will take some sort of action to tap shareholders again?

TerryM1 you said "It is correct as at that point CPI by chasing cashflow were insolvent, just it was hidden"

What you are saying is just factually wrong because:

If CPI was in fact insolvent back then well then it would have already gone bust. Claiming it was just hidden is nonsense and there absolutely would have been signals within the results being published.

You're just making strange statements now which will not stand up to interrogation of the facts and whilst I understand the disappointment/cost/pain you may be feeling it's not right for you to lash out at me because I'm 100% not to blame here, so I bid you farewell as I don't want to engage in discussion with you until you calm down a number of levels (as it's not a discussion, it's just me pointing out holes in your angry/shouty statements).

TerryM1 - I've repeatedly explained why I'm on this board for all to see. I find your language quite accusation/aggressive - e.g. contrary to your belief I don't have to justify to your why I am on here because it's a public forum for discussing aspects effecting CPI company.

You sound like a bully tbh - you also seem to enjoy trying to shut discussion down, much like a toddler does when they cannot get their own way🤷 - I find it very interesting because also I don't have control over the CPI Share Price, so why get so angry with me when you only have yourself to blame for your own personal investment decisions going wrong?

TerryM1: "when CPI were chasing contracts at any price the best option is to batten down the hatches, cut costs, keep profits even if they are shrinking along with cashflow and wait for the results of your compactors mistakes to take effect."...

Um... that is just not correct... if you batten down the hatches + cut costs you'll just see sales locked in freefall and costs won't reduce quickly enough so you'll be insolvent and fast at that... it's a lovely narrative that might sound plausible but it will not work.

ValueS.. you said: "Without it the SP would be at 63.5p instead of 67p!"

Except it's trading with the buybacks and so it's holding the ~66.5-67.5p range 👍

Davef24 - why? you ask...

It's because VOD is being buffeted by broad based macroeconomic turbulence. However, VOD is remaining at a fairly decent SP when you compare it to the many other London listed companies... Definitely a good buying opportunity here if you consult with the recent results published and consider the forward look for VOD.

Significantly in VOD's favour is the decent liquidity/cashflow it has.

Jokes aside though I'm deadly serious here... neglect sales AT ONES PERIL. Yes, a business cannot stay solvent if only ever booking losses on 100% of all sales... and overall net profitability is vital of course.

But pulling back rapidly from selling anything... Well then you'll go bust in a flicker of a moment.

But hey... let me introduce you to TerryM1 the Sales Manager at CPI...

Yeah he's a great chap... you know... the one who wants to do anything except sell any services because "it's better to let your competitors make mistakes and pick up the pieces when the time comes" 🤔💭

"Sometimes it is better to pull back let your competitors make mistakes and pick up the pieces when the time comes."

This is woefully misguided tomfoolery - Do that and this business will fold, of that I assure you.

"Very poor communication" - it's another flippant comment essentially making an excuse that the results are better than they look and it's down to 'poor comms'...

No... the results are terrible - this is not a case of CPI stock being manipulated and in fact it's probably the other way around, the stock has remained remarkably resilient in the face of clear, present and VERY real danger.

Also to add... when firms need cash FAST there are only so many quick routes to do this too which makes it particularly difficult these results have landed at the moment of danger for the wider UK economy and I did warn about this in the Summer and into Autumn but hey ho no one was listening to me because apparently some think I'm a paid to post de-ramper 🤷

Literally and frankly speaking CPI has entered the critical danger zone... straight up, without raising bucket loads of cash and fast there is possibility it can go bust... I'm not claiming this can happen in a matter of days but I am claiming they really need cash and FAST.

Thank you Hexam and just for the record I have never argued profits are not important! That's just being peddled by Terry as an attack line because he sees and reads my comment assuming I only care about revenues and cashflow which is NOT the case... It's just my view right now that CPI has a cashflow crisis and rather than emphasis on cost cutting they should be far more worried than they appear to be about the plummeting revenues and the tanking sales.

TerryM1 - Cost cutting is though not the only route to fiscal success though of course and that's part of the issue here because the narrative from CPI would lead many to believe that were the only option to achieve glory.

There is of course another option... Bring in bucket loads of cash through growing sales revenues; to keep the wheels turning whilst you perhaps consider cutting costs at a less aggressive rate... CPI is achieving cost reductions but... it's costing lots of cash to undertake those cuts quickly which is causing it a cashflow conundrum!

Especially since its revenues are acutely falling £2.81bn (non-adjusted) 2023 FY and projected by my estimate to be just £2.4bn (non adjusted) for 2024... so CPI spent bucket loads in pursuit of saving £160mil, meanwhile losing £0.4bn of revenue...

Now... what happens when you cut your revenues, and you simultaneously spend bucket loads of cash to try and cut your costs? Yes, a cashflow crisis... which has to be filled plugged with either borrowing or selling.. and if you exhaust both of those? what happens then?... well you either tap shareholders for more cash... or you become insolvent!

TerryM1 - https://www.youtube.com/watch?v=g4IQjUpTNVU 👈 Perhaps, this explainer might help you with working this one out?