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Agree, the own cash position is drastically different to where is was pre-covid, cash including customer deposits is same than the market cap and the £1.3bn of own cash is way bigger than anything they have had before (2019 it was around £60-70m). Wonder what they will do with it all, a special div or buyback would seem sensible whilst putting the rest to work investing in the business. 13% capacity increase should drive an upgrade through the year irrespective of the wider environment
Easy mistake, the internet can be just one big recycling bin, this year will be a lot better to 2022 though.
I do think the market hasn't quite appreciated the net cash position here of approx £2bn. The enterprise value is around £1.2bn to the mark Cap of £3bn. I know they have forward liabilities etc but in 2019 the net cash was £68m - that's a massive difference.
Saying it is expected to be earnings enhancing isnt giving an actual profit number… and that happens. At the moment its just a load of new revenue.
In any case lets wait for the TU, I am invested just not over enthused about their comms strategy
They should be able to say if it is earnings enhancing. Clearly they need to announce the contract wins as they are material, there are no clear rules about what has to be said when.
Fact is they failed miserably to give any real detail or the impact the contracts will have on the business and the shares got spanked accordingly.
Fact is if its earnings enhancing in any future year then state that. The fact they haven’t/ can’t simply means it can only be regarded as revenue. So it could end up driving a profit or a loss depending on how the contracts play out…
So are they the lowest bidder winning the contract or have they left enough to eke out a profit? Maybe we find out in a couple of years.
Because they haven’t given any indication of what the contract wins actually mean for the results of the company. Not much point in announcing if on-one has a clue how much extra profit the contracts make…
Maybe if they announced how this would actually impact the results for 23/24/25 then the share price wouldn’t fall.
Two big contract wins, no idea how much profit they make. Share price falls both days… nupty Investor Relations…
For all the positive press it’s pretty frustrating that the listed entity TM1, the one people can actually buy shares in, doesn’t get a mention…. Rycyclus gets all the press and our Chairman is happier being presented as the founder of that than putting some PR the way of TM1… whoever is running the PR needs replacing.
Thought this story was quite relevant -
https://www.lse.co.uk/news/GLEN/dead-ev-batteries-turn-to-gold-with-us-incentives-rrf2ifu02szsyth.html
Personally I am a bit concerned about the Recyclus deal. Binding term sheet means nothing, usually that only binds them for an exclusivity period and non-material items (like confidentility) - its the SPA that matters and I just don’t see the sellers wanting to take TM1 shares at this price on the same basis as when the term sheet was signed when the price was much higher. I suspect that is why it has taken so long and perhaps they are waiting for the share price to go back up. Normal course due diligence and the legal process do not take this long, particularly when you own 48% already. Suspect it will happen but not on the terms previously announced.
It doesnt say 1p for the share options. The exercise price is 2.325p which is the current price and what they would need to pay when they exercise.
The nominal value of the new ordinary shares of £0.001 each in the Company but that isnt what the directors pay for them.
Unfortunately management here couldn’t organise a p*ss up in a brewery, plus we have the car crash of the 2022 results to come.
That said I think it will go back above £1 shortly but every time management open their mouth it crashes back down 20-25%…
Singer also claiming in their note this morning that "Management execution remains strong"... so I'd assume Jimbo has a good relationship with them and they do what their told like good little brokers... whilst they wait for a big fat take private fee... only after he's trashed the price by continual underperformance....