The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Seeking 1 let me educate you. 1integrate was renamed 3 years ago. It was previously known as Radius studio and is as old as the hills. No new software @1spa. No brains left to develop anything. Talent has all left. They are just kidding the shareholders to keep the fat cats in jobs.
4. The cash position at half year was terrible standing at £734k down from £2.293m in July 2017. Management have burnt £1.559m in a year!!! As a growth company one would expect this to translate into revenue growth but NO deferred revenues are down £754,000 and total revenue has only increase by £270k. 5. Management have raised £8m diluted all the share holders to support growth so let’s apply the same metrics, Lets be kind and say they’ve got £4.5m of the cash left (4.5m/734k= 6.13 time) so let’s apply that to the anticipated revenue growth (£270k *6.13=£1.655). So Management have raise £8m diluted the shareholder and if their track record proves out they will add £1.655m of one off consulting revenue to the business!! 6. What an investment case, raise £8m and add one off revenue of £1.655m while the board get fat with salaries and bonuses, while the tell the market they’re a growth software company....
1. A quick look at the balance sheet shows the decline and destroying of shareholder value, deferred income (accountants words for recurring revenue) has fallen 19% down to £3.260m from £4.014m that’s lost contracts, so in the half year they’ve lost £754,000, the full year position will be at least £1,508,000, i predict this will be approaching £2m at year end.This is now a pure consulting company and should be re-rated as a consulting company with a 0.8 times revenue valuation. 2. There also been a swing to the bad with Trade Payables now standing at £1.8m from £1.4m, so they’re not paying suppliers or HMRC!! 3. And what’s the Story behind the Write off accrued revenue £138k?...
A Placing to keep the directors overpaid and a fat fee for singers to go on holiday with. The bank must be calling in the £2.5m overdraft. After paying fees clearing the OD and paying the screaming creditors the businesses will be lucky to be left with £3m....
I have been a shareholder luckily I sold down, I keep a very close eye on 1spa. My posts are personal viewpoints from research information. I can not understand 1spatials strategic direction and I don’t believe any material value will be materialised but I hope To be proved wrong, the only silver lining is 1spa has hung onto its institutional investors, however I expect an RNS informing us one has sold out, 30m sale weeks ago,. I note no new investors for some some time. When a sales team losses its driving force its difficult to recover especially in a moving market.
You do not have to be rocket scientist to work out the roadshow did not go well, they saw over 10 institutional investors, no significant buys! I don’t see any buyers where we’d get an IPR valuation. From what I’ve seen of Management they are not capable of making a trade sale.
Roberts & Milverton on the roadshow this week, looks like they’re struggling. Need to open up - with news from the city is Milverton & Roberts have a business model that’s not sustainable and doesn’t fit with the market opportunity and it seems the Esri relationship has gone sour.