Results29 Mar 2018 19:57
Hi all,
I am very pleased with the results as I see them. They have given a clear outline as to what they are doing and the plan of action going forward. Revenue growth is going along nicely and they have a plan in line to reduce costs, mainly through a 25% cut in staff. I also like the addition of Advertising to the narrative. The have also outlined that they anticipate that revenue will grow, and lets not forget that they have not done any third party work, which last year was driving the revenue up. They have referred to the takeover, and have outlined that some "investors" are showing frustrations with the speed, but they did not need to mention this if the plan was merely to pump the share price to get money in......which by the way was not done through a placing but via an unsecured loan. Anyone who has grown a business knows that costs are always high initially, and this will level out over time when marketing and streamlining come to pass. Furthermore, they chose not to use Rising Dragon for the loan, which would have been convenient.
The Operating Profit for the six months has grown from 32k to 439k, while the Costs grew from 1257k to 1847k. I will let you do the math on that and the % growth in both metrics. I would also like to draw your attention to the Other Receivables, which states that the total is 822k and includes "funds held on account with an advisor in connection with a potential acquisition", I will leave you decipher whether that includes a bulk of the previous money raised that people who won't have actually read the accounts will assume has vanished into this air.
I do however note that it is strange they did not release the results before market hours, especially as there is nothing untoward in there. The numpties, whom I have no doubt will have read them, will assume this is because there is bad information int here, but then I have never come across one of them with a semblance of intelligence.
I hope this might spark some honest chat, and no waffle that has been spouted here for a while.
Onwards and upwards from here.