Member Info for shandypants2

CB - agree, which is why I quoted cash statement in addition to profit. If they are spending it they can't hide it in the cashflow statement.

we are but Bitcoin was over $10k then and it appears market prices this up and down as Bitcoin price fluctuates.

YE will hopefully show efficient mining is producing a healthy profit for ARB regardless of price and if Bitcoin rallies , as is expected, hopefully this is a double whammy for ARB.

Hunky, I disagree a raise is inevitable - in fact I would say it is unlikely.
In H1 Starcom did create cash during the period from operating activities (a massive plus IMHO) and R&D costs are quite low (less than £100k) as I think existing products are tweaked/updated rather than rebuilt.
They has c£500k cash at end of H1 and H2 should/will generated their first full year profit (c£250k I think).
So unless something unexpected happens I think cash is ok (IMHO!!)

Also don't forget £4m rev expected in 2020 - so 2019 is minimum of £1m and then c300% growth in 2020.

I knew it would grow rapidly - e.g 100%, but 300% is amazing, and probably reasonably conservative

HC sold 4m shares last week, 27% of company. Not only will this have created an overhang that MMs will slowly work down but some blocks were sold at 47p so at 60p there is a quick 25% risk free profit for some.

This is massively undervalued IMHO but it might take a week or 2 before things calm down.
In last week we know that revenues are up 38% - so one track for a record £2m 2020 profit and new product will be stocked in all 800 Superdrug stores from next March. So Superdrug will do a bulk buy of between £250k to £400k to stock these stores. This revenue is not in 2020 numbers so clearly de-risks the 2020 profit even further.
DYOR etc

I do think some of the equipment is definitely unique and there is definitely a large market for rail and air freight products, whether unique or not. The fact that Starcom has a number of major customers is surely a positive indication that the products are needed and are top class. Some of these deals appear to be quite small though so it is repeat orders that will make the big difference.
Other relationships such as Zero are clearly in the early stages, but I would be surprised if we are not charging the manufacturer an upfront amount for each unit fitted.
Agree PR is a major issue and also being a small company lack of a good salesforce, however, revenues are growing and we should make a positive PBT for the first time so momentum is building, unfortunately not in the share price.

Hopefully a little positivity and things should change. Company currently valued at £4m - less than last year's annual revenue

Skier - no the company now has an additional £20m of cash - so total value of company is now c£26m.
Divide £26m by total number of shares (existing and new) to get value per share.

HC was on a little over £100k last year I think, year before as CEO he was on over £150k. None of the IDP Board are on silly money - quite well managed from that perspective.

HC will need to be replaced though as Board is now quite 'lite' and in last year he was focusing on Life Science division so somewhere else will need to pick that up

most of those 62p ish sells will be buys. I topped up at 61.8p mid afternoon and it was reported as a sell.

agreed, but neither are on great salaries - KC got paid £56k last year - so it is still a positive sign

I strongly suspect that Haris wanted to take a back seat so they forced him to sell all his shares in one go - no way would he accept c54p otherwise. Comments regarding him being a great entrepreneur suggest there may have been issues in the background regarding how to run the company. Costs and cash have definitely been managed far more effectively since KC took over.

Now he has gone Kieran and Joe are steering the ship and both have just topped up - it's a good indicator IMHO.

Wouldn't be surprised if we get more news soon on distribution deals etc in addition to new product.

Also, 2019s £1.4m profit was made up of H1 loss of 0.4m and 1.8m profit H2. They will know what H1 numbers are so even a moderate H1 profit massively de-risks full year profit guidance.

certainly think anything under 80p is a bargain.
Decent H1 results in Jan and yes we should be back to £1 - 50% upside with limited risk (38% rev increase in 4 months - only 2 to go).

agreed, but eventually the numbers will do the talking.

Moving to profit this year is a massive step forward, it's hardly RIP

hopefully things will calm down now.

We were 80p yesterday morning (and pretty cheap at that price IMHO) so hopefully can get back there asap.

If anyone is thinking company must be going to the wall as HC has dumped all shares this was no doubt part of the agreement. Couldn't have him drip feeding sales over the next few years. Had to be a one and done and a clean break.

Good to see a few previous holders back and suddenly positive again!!

A little harsh greg, he did a lot in the early years to set up the company and acquiring ST quite cheaply was a master stroke.
Having said that he tried to move too quickly and over promised and under delivered.
The share selling during results day was unforgiveable and this share has never recovered (especially as he had also received his 6 figure loan back during that period).

IDP is in a solid position now and current CEO is a safe pair of hands. Onwards and upwards!!

Cash position??
SOH's quote is..
"the money would support the stocking of retailers and the 6 figure SlimBiome order (as we have to buy the ingredients first). Interest is growing quickly and I wanted some contingency in place in case the demand for the products is high and they needed rapid restocking. I did not want to risk having a retailer growing sales and us not being in a strong position with stock. This is an unusual activity and the extra funds give us added contingency if required."

When concerns were raised re cash position only a few months ago after poor H1 numbers we were told everything's fine, SOH has said so.
Buying ingredients in advance of an order is standard BAU practice. If OPTI hasn't got the money to do so that's a concern IMHO. I'm not sure why unusual activity is mentioned, surely that's exactly what you want to happen - repeat orders.

Similarly if OPTI are going to part fund marketing costs early next year - how much and where will this money come from.

Most big players have a 90 day payment policy following invoice so that could be maybe 120 days plus after OPTI has incurred expenses.
This is why cash was raised as a concern and many were quick to shoot that down.
Surely if you think your shareholding will go up you wouldn't sell any - regardless of the positive spin.

Love the products and still think this will come good but cashflow is still a big concern for me. If there is a placing, for example, to support marketing next year no doubt this will be spun too - only small %, small discount etc.

wow - well over 4m shares sold in last 24 hours. Has to be HC.

Did hear he was essentially part time for last year or so and being based in Australia and 12 hour time difference means he can't be dealing with any UK issues.

Maybe we do need a clean break - he's damaged goods.
Where's the Tr1?

couldn't go myself but the messages I've had are all positive.

A few snippets are:
ST - expanded Wonder Serum products will be released next summer
ST - xmas offering in SD will be out in early December (in 681 stores)
ST - nominated as one of 5 best new launches at Boots - didn't win but shows IDP doing something right
Roots - increasing marketing efforts to get new customers (% of repeat customers quite good). Asda doing better than Tesco
Roots - more shelf space in Boots a vote of confidence
C+L - new xmas offering plus DTC in UK Dec this year
Growlase - relaunch in Dec this year with supporting hair products. Before and after hair pictures look quite impressive
New product - DTC form Feb 2020 and 800 SD stores from mid March. SD very keen from day 1 and matching marketing spend £ for £.
Prolong - attempting to expand regulatory approval - a bit of a negative here IMHO as this should be quite straightforward and we have been told this before. Maybe these things just take time

38% 4 month H1 revenue increase. I was slightly disappointed with this as was hoping for nearer 50%, however, as a friend mentioned late summer weather was horrible and DTC was so aggressive May and June 2019 (to hit 2019 numbers) that there was always going to be a slow down first few months of H1 - this makes sense as when I buy Roots DTC I always buy in bulk to ensure I get free p&p. therefore, only need to make purchases every 6 to 9 months.
Also told DTC issues last year predominantly happened later in period so this may mean better xmas numbers this year.
If 38% increase is continued for full H1 that's c £5.5m - so to get 23% year on year increase H2 only requires c15% growth.
Eventually the numbers will do the talking with this share

I'm not overly keen on these kind of accounting entries but every DTC customer has already bought a product so is something like 5 times more likely to re-purchase than a new customer (or it might be cost of getting a re-purchase is 5 times less!) and £3.50 does not seem excessive to me.
Surely this is no different than having intangible assets on your balance sheet, which every company does.
How are these valued ? A brand name asset can soon turn into a liability if poorly managed.
I look at cashflow as a guide to a healthy company - last year IDP generated healthy cash from operating activities and even after spending some of that on new product development was still cash positive.
All good indicators of a healthy, growing company IMHO

Nice to get this confirmed so hopefully all systems go now. Was hoping for less than 10 week wait until results, so now early Jan 2020, but this process is massively de-risked as POLX has already done this testing, internally, before so they already know what the results will be. They just need to do so under clinical conditions.
Looking good

the broken record returns. Probably Miton if there is a big seller, as well you know