Member Info for shandypants2

So only in July we were told the company has exceeded expectations for the year, a few weeks later we then have a placing at 30p and afterwards the CFO twice buys shares via the LTIP.
Today it appears the EBITDA has been overstated not once but twice.
Of course the EBITDA (not PBT) is used as the main part of an overly generous LTIP.
The CFO and CEO need to go - Hudson already owns c25% of the companies shares, not sure why he thinks he needs any additional shares.
Over the last year or two the revenue and EBITDA have been growing nicely, however, the SP has been steadily declining from c50p to now less than 20p.
Clearly many knew things weren't quite right, and so it has been proved.

So sorry for all LTH (except the BOD)

should be a decent announcement as numbers were increased upwards quite late in the year, albeit the initial trading guidance was quite low.
2022 should show that RBG is trading profitably and is cash generative.

The outlook/trading since YE should be an interesting read as other bars/restaurants seem to have been trading well since the summer.

poor H1 results were already known so maybe the fall today was due to the outlook statement which was no more than ok.

I was hoping the change of distributor impact would be short lived and surely the new one would open up new channels - maybe progress is a little slower than they had hoped, as surely any good news would have been mentioned.

Previous RNS stated a whisky would be coming late 2022 - well we are in Q4 now.

Seems strange to spend so much on TV ad at the same time when distributor change would squeeze cash.

Hopefully a good Q4 /xmas will get this back on track

I suspected the timing of the CEO share purchase indicated that there was no news imminent, but nice to get the share price up a bit.
News is due by end of Q4 so i'm not expecting anything until early Dec at the latest. Happy to be proved wrong.

staff and marketing costs up by £2m !!

i do like OTMP and the CEO comes across well. However, i'm a little underwhelmed with today's figures.

Essentially revenues up £2m (good , double digit growth) but operating profit is down by £1m as costs have increased by £3m. This increase appears to be due to staff costs and marketing (c£m in total) and £500k on Glanty.

Cash is still good though and it is cash generative from operating activities.

So revenues up, cash being generated but due to acquisitions and other strategic initiatives profits are down.
Seems to be the same story we were told last year.

Ultimately it is the PBT figure that is key - not EBITDA or operating profit etc. PBT is positive at least but is very low and doesn't seem to be increasing any time soon

the cashflow in the accounts is key and shows the issues DVRG were having. The 2021 accounts (published in June 2022) showed the cashburn for the year was £8m - £5m from operating activities and £3m via investing activities. That's why the £10m placing was required and burnt through.
In the H1 2022 numbers the cashburn was c£4m, so that's why the loan was required.
The other issue in the H1 accounts is that Accounts Receivables (money invoiced but not yet received) is over £7m. So as at 30/6/22 DVRG were waiting for £7m to come into the company's bank account (and revenue for the period was only £6m). Some of these invoices might have say 90 day terms so won't be paid immediately but it appears to show that some customers are not paying on time

i wonder how much DVRG owe for goods supplied. In the recent accounts the accounts receivable figure (money we have invoiced but not yet been paid for) was over £1.1m which is quite high based on total revenues.
As GB essentially runs both companies it is likely that issues with one will impact the other.
Hopefully, it can all be resolved soon

Cash has always been an issue and GB has been quite aggressive in shouting down those who have raised this as a concern.
It was only 14 months or so ago that £10m was raised at 30p. He is also the first to tell us when the odd quarter has been EBITDA positive - we have heard this for about 2 years now, however, clearly that is not profit or cash generation.
A key aim for any small company is to manage cash. Whilst it is good to be agile and adjust as demand dictates e.g. STC, costs must be managed and when things are not progressing quickly they should be swiftly stopped or reduced - such as the breathalyser (which i had high hopes for). DVRG has struggled managing cash from day 1 and GB must take a large part of the blame.

Incidentally the supposed purposes of the £10m June 2021 placing are below - maybe working capital should have been top of this list.

The Company has transformed its business model to apply artificial intelligence to life science and environmental test services for bacteria, viruses and toxins. The Company intends to use the net proceeds of £10m for the following purposes:

· Acceleration of Labskin Services

· Expand Skin Trust Club

· Expansion of Modern Water Sales

· Working Capital

a really good update today, building on the AGM statement. 15% YoY revenue growth should not be sniffed at and cash position looks very healthy.
Need to ensure these increases filter down to the bottom line, as profit is key, however, overall Marks is a well run little company that is progressing nicely despite difficult market conditions.
Recent SP decline looks overdone

what a joke of a share. No info for ages. Has the BOD given up?

Adding to CF's purchase i think the bulk of his shares were at the time Venn acquired OO (or vice versa). The money from that was at a placing of 5.6p and CF was a main contributor - he mentioned at the time he has put a large % of his savings into the company. He then added at a later placing of 6.1p and a few more at 26.5p last year. Not saying he didn't get any free shares but the bulk was at 5.6p

i hope you are right re Leahy as the number look worse every time i look at them. A Gross profit of c1.3m whilst spending 1.8m on marketing is madness. This is before operating expenses of over 2m and R&D (which can be increased/decreased as required i suppose).

I presume the logic is to increase marketing spend for a limited period to support the salesforce and then when reduce it once these contracts start renewing. However, the growth in revenues is just too low to justify it.

I had such high hopes for this company so am very disappointed. BOD just do not seem to know how to get this to profitability

other than the new on Friday that FDA has granted a 90 days extension. If no chance of success surely a CRL would have been issued. A massive positive IMHO

Noel - they weren't 'promised' for April, however, there was a stated keenness to get them out earlier. However, CF did state that it is complicated by having foreign operations. In a year when some companies have extended their audit periods due to covid extensions , ORPH has not. ORPH can give a trading update at any time, no need for audited figures BTW.
Of all the areas to bash ORPH and CF people must be getting desperate if they are focusing on the time to publish results, despite it being well within AIM rules.

well IMMO isn't profitable yet - it made a £300k loss as per accounts today, albeit much reduced from previously years - and it has only £300k of cash which is very low, so i don't think a placing is out of the question (and IMMO do like a placing).

Having said that one of the positives is that cash generated from operations was over £500k so this shows the business can be profitable and cash generative.

Let's see how the next few months pan out

No worries Da it was badly worded and i had to re-read it to fully understand it. As the extra payment seemed guaranteed at a SP of 125p i'm not sure why they didn't just do it in cash, as essentially that's what has happened. Probably money we could do with keeping inthe bank at the moment!.
We really need these 2 recent acquisitions to start adding value. The revenue since acquisition has been underwhelming.

well the TWD H1 RNS looks like they've given up. No positivity at all. No point keep mentioning this pipeline of opportunities when new contracts never seem to materialise.

sorry guys i didn't expect to get sst commenting again - apologies.

However, for balance i'll re-post this comment, which he has conveniently ignored.

So in 18 months in many respects from a cash position it has stood still.
However, it has spent quite a decent sum in that period on expanding its CS models, the number of beds and also reorganising the company structure so to do this without impact the cash position is a decent achievement.

the pipeline is looking encouraging but the admin costs are currently double the Gross Profit so there is a long way to go.
With the recent asset sell the cash position is looking better although the loan is at 11% interest which is not inconsiderable.