Member Info for shandypants2

Laura, EYE has over £10m in cash and is cash generative as per it's cashflow statement. Furthermore it has an undrawn £10m credit facility.

Essentially it has spent £5m ish today despite losing a big contract a month or so ago. However, i'm struggling to see a massive cash issue here. What are you thinking and why? Cheers in advance

Whilst the delay is a concern and also pretty unprofessional as we had a TU for the YE end earlier in 2025 they would have to RNS if anything had materially changed.

Hopefully the delay is due to good news!

Ice - the $450m comes from Sidara, as per previous RNS, below

The Sidara Liquidity Arrangements would be structured to enable the Company to draw in two tranches:

(a) an initial tranche of $250 million, the drawing of which would be conditional upon approval by Wood's shareholders of the Offer (if such Offer were structured as a scheme of arrangement as is currently intended between the parties) or upon the expiry of 21 days after posting of the offer document (if such Offer were structured as a takeover offer); and

(b) a further tranche of $200 million, the availability of which would be conditional upon completion of the Offer.

Among other things, in the event that the Wood Board withdraws its recommendation of the Offer, any funding drawn down under the Sidara Liquidity Arrangements would become immediately repayable (unless in the context of a competing bid that is matched or improved upon by Sidara).

If the Offer does not complete as a result of any antitrust or regulatory approval not being obtained, the initial tranche of $250 million under the Sidara Liquidity Arrangements would not be affected and would remain in place until its maturity date (in these circumstances Wood would not be entitled to draw down on the second tranche of the Sidara Liquidity Arrangements).

The auditor must undertake a going concern evaluation. It could be as simple as having to waiting until existing lender discussions are completed. There is extra funding available via Sidara, however, clearly that purchase will only be actioned once the lending situation - waivers/extension/new terms etc are completed and known and the account are published. Very frustrating but the fact that Sidara haven't walked away is encouraging IMHO.

No they haven't. Whilst the Japan deal is a positive, like the other deals such as China, regulatory approval is required in that country. If the regulators do not accept FDA evidence, as was the case in China, then further phase 3 trials will be required to show the product is safe and is effective. This could take a few years.

As per the RNS excerpt below

VITAL-NET will undertake and be responsible for all costs, including clinical and regulatory, related to activities required to achieve marketing authorisation and commercialisation of ACCRUFeR® in Japan.

Well with the NAV at 90p a 20% discount to that would have us at 75p and c20p increase on the current SP or c35%. Seems fair value to me. Yield would still be c8.5% at that price .

Plenty of upside IMHO

Agree, however, the lack of BOD share purchases is v.disappointing and would give some short term assistance to the SP.

They are well paid so there is little excuse IMHO

Stanleyb - it wasn't a suggestion to post the same stuff yet again, which you have.

As i said, i agree THG is massively undervalued, however, as the 2024 accounts show it lost c£150m. As i said profit is king.

Stanleyb - we get it. THG is undervalued. You post about 10 times a day, every day, saying essentially the same thing.

Unfortunately revenue is just a guide - profit is king. THG doesn't make one and MM is not rated hence the negativity.

Hopefully 2025 will be a better year and value will be realised.

Look at Revolution (bars) BTW. Over £100m revenue and EBITDA positive but makes a loss as loads of debt and is almost worthless.

Yes the new CEO (who was previously a NED) bought c£20k worth but it has to be said over the last 5 or so years with multiple fundraises the BOD engagement has been zero which is very disappointing.

The previous CEO (American snake oil salesman, Greg Madison) came in when the SP was almost 60p and left with it over 90% down. Yet looking at the results he received a total remuneration package of over £1m in 2023 and when he left mid year 2024 he still received a bonus to take his earnings to over £600k for c6 months work. He also received $600k as his exit package (hidden in the accounts, but it is there). He also receives loads of 'free' shares for just staying in his job so had no incentive to buy in the open market.

STX has clearly been rewarding failure.

I note that last year we were told there would be a 10% 'cost base' reduction, so i assume this includes salaries. Based on the last accounts STX has 77 employees of which 53 appear to be sales based. Has the board taken a 10% pay cut? Maybe that's partly why the last CEO left. Maybe it partly explains why the last 2 quarters prescription numbers have declined - an unmotivated salesforce is never a good thing.

My concern here is how much further dilution will be required in order for STX to get to breakeven/profit.

Years ago after an initial fundraise (pre FDA approval etc) at 150p we had 117m shares.

We now have over 1 billion after a number of fundraises (30p, 8p, 6p and recently 3p).

We have also 'sold' 45% of revenues to Viatris, sold the Chinese milestone payment off at 50% of it's value and have a number of loans in place which we are now paying interest on (over £3m in the last accounts).

Whilst i suspect AOP will continue to be supportive and will take up any further placing it is likely the price will be lower than the last one (3p) so i'm guessing maybe 2p.

If we need another $10m at 2p that's another 500m shares , so c50% dilution. That's on top of the c90% dilution we've had over the last 5 or so years.

So £100m is 8p a share.

BTW - it's a bit confusing having the £ and p signs together, but i know what you are trying to convey.

Guessing this will be in the next few weeks if it is based on the calendar year.

This should have a positive impact on the SP. The recent trials showing 95% accuracy bodes well too

Well we have a massive issue here then as STX aim to get to breakeven by the end of 2025 and if they don't their coffers will be empty.

This is as per the most recent RNS from less than 2 months ago...

"Looking Ahead - Our goal is to be a self-sustaining business by the end of 2025. The solid financial foundation we have in place exiting 2024, empowers us to move forward with confidence, fully equipped to execute our strategy. With a stronger balance sheet, effective cost-saving measures, and a thriving presence in the U.S. market, aiming at achieving cash flow positivity by the end of 2025."

Results for 31/12/24 need to be published within 6 months of period end, so end of June.

We are not far away which is a slight concern. In the Jan trading update there were a few adjustments and write offs from previous years, which might account for the delay.

Hopefully no new issues have been identified.

2025 should be a good year so let's hope H1 trading has progressed as well as Q1 and a decent revenue and profit increase will be reported for H1.

Https://www.sharesmagazine.co.uk/article/dividend-growth-stars-the-companies-boosting-returns-to-shareholders

Re divi - Share Magazine highlights Card on their divi best performing list - both in divi growth % and divi yield , i.e. it pays a decent divi and the divi is growing at a decent rate.

Yes, a short but positive update. I think the language being used is quite conservative. Comfortably in line with expectations will hopefully be upgraded to exceeding market expectations in H2

Yes, a short but positive update. I think the language being used is quite conservative. 'Comfortably in line with expectations' will hopefully be upgraded to exceeding market expectations in H2

Yes i remember saying i was concerned about his large holding as he is no longer a non exec when he started selling a few a number of months ago. I remember one poster immediately telling me i was wrong. Well it appears not.

He is involved with an Australian net zero company now so clearly wants to release some of his equity here, which he essentially got for 'free' when EAAS bought Beond (sp??) a number of years ago.

Clearly he will want a decent price for his shares, so hopefully that will limit how many he gets rid of and how quickly but it's pretty clear he is selling down and will continue to do so.

A good trading update despite playstack revenues declining MoM, although this was expected as Balatro sales had to start declining at some point.

£51m target for YE looks very conservative so i can see a couple more exceeding expectation RNSs later this year.

Not a massive fan of buybacks, i would prefer this was combined with a special divi - maybe 2p, which is c£2m in total. Still leaves a lot for buybacks. Alternatively leaving money in the bank earning 4% is not a terrible idea for the next year or so.

Anyway, buybacks it is. Despite a 200k purchase yesterday the SP is refusing to move higher - MM games? Surely this has to be £1 plus in the short term if buybacks are at this level (although it is noted previous days volumes have been much lower).