The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Brock
Excellent summation and until we see the detail I’m rather pessimistic too that excluding the Magna one-time $10m our revenues have declined. In addition whilst our cash balance has gone up by $12m let’s not forget that we’ve had the $10m upfront payment AND drawdown of $30m of the $47.5m so a cash injection essentially of $40m. That means we have breezed through at least $30m within the business pointing to a larger loss than we were hoping.
Might be wrong but clearly whilst the building blocks are being ever strengthened for the future the short term doesn’t feel as rosy as I’d hoped by any means and for me it’s all down to lack of top line growth. We’re not going to be a unicorn business until we can double sales year on year on year!!
Sorry for asking what might be obvious to other non finance people but clearly the revenue numbers announced today can’t have the $17.5m Magna upfront payment included. I know there was a long exchange on here last week about what gets booked to the P& L versus the cash but when the numbers get released in two weeks time then our +54% revenue growth surely will show a couple of 100% growth won’t it when including the one time Magna windfall.
Can anyone actually record the interview and post. Whilst a few have mentioned there was nothing new in here that always had to be the case From a disclosure perspective but I thought this was absolutely fantastic and probably the best media exposure we’ve ever had. Unfortunately for many of us we all have a long history and have shared the pain of the ups and downs But what an incredible investment opportunity for those who are coming to this for the first time were clearly there can only be high upside long-term. Here’s hoping the company share this far and wide on our website and social media feeds.
Good opener from Cenkos - “Seeing Machines has announced a positive trading update. We believe the company is on track to exceed our full year revenue and cash expectations. We iterate our Buy recommendation and our 24.3p price target.”
On the face of it a better set of metrics than last quarter but as always the devil is in the detail which we don’t yet have. Still trying to digest the underlying numbers but for example Guardian recurring income up only 6% vs prior year compared to unit installations up 25% - it’s still painfully slow .Where too for example is the Magna cash - I was expecting the balance to be higher. Hopefully more info will flow out in the next few week.
Livingstone/ STP - I think we all share that frustration and hope the Trading update will bring with it more concrete news of firm future contracts. Unfortunately until that happens our SP will drift as the incremental numbers we are achieving are insignificant to demonstrate that future value. I was just looking at the last KPI RNS in November to remind myself of the numbers and whilst in Auto we made large % gains in ‘cars on the road’ 559000 up from 183000 we have to remember that this is all being driven on existing contracts. Whilst clearly that’s great upside in respect of future wins that rate of increase quarter on quarter has been falling. For the last 3 quarters our % increases were 40% 31% and 25%. Let’s see what the next quarter holds but we really need new business to drive that growth which we’re seeing so much evidence of in our various posts and yet no new contracts announced at all.
Again we know where Guardian and Aftermarket are headed with NewGen and Mobileye but in the short term we’ve only seen low single digit growth. So in reality I’m not sure that my expectations for the numerical aspect of the KPIs are going to be great but I’m really relying on the the Trading Update to provide us and the market with news that the $$$$ are coming soon.
Financial Times -Saturday February 18th
Jim Ratcliffe and a Quatari Investment consortium today put in $5bn bids for SEE after getting a sneak preview of the trading update due on the 22nd. In a hastily arranged interview PMG flatly turned down the offer as being nowhere near the true value of the business. He did however indicate they came closer to $15bn they’de throw Man United in for free !!
https://twitter.com/seeingmachines/status/1626431297542316035?s=46&t=HZ6XeeL3HDySpQMll2aHBw
We know stuff is going on behind the scenes and are hoping for big news on Aviation ‘imminently’ but very encouraging news on the industry today with this Air India deal. We know too demand for pilots is increasing which this clearly demonstrates so come on SEE get us over the finish line on this soon!
https://stocks.apple.com/A_Z4CdsM3QAqrpQsdS0tduA
I think what Brock is saying is that whatever the benefit of the license revenue is it may well be a ‘one time’ supplement to the P&L subject to how GAAP requires the $17.5m to be recognised. I’m not an accountant but the rules may require it to be recognised all in one go even though it may actually be paid in three separate instalments. In my opinion it would always be better to have this spread as it would not impact the comparisons as much but there may well be no flexibility on that front if GAAP requires it.
https://twitter.com/ancapsafety/status/1625374226667683845?s=46&t=p4_fg9GtBXGcmoNPfIx5Pg