Member Info for stt1

Eddie
"moving from low margin or loss making operations to profitable areas of the market (Video/CTV)"

The results include rthm operations which were closed down. Rthm's margins were around 45% pre-merger. Therefore, it's using rthm's model which has improved margins, slightly from 42% to 45%.

However, they closed several rthm operations, inc Perk during 2019. Therefore, nobody knows whether the increase in margins was because of any of the discontinued operations.

There will also be a loss of revenue and cash from those discontinued operations.

CTV Revenues

They are comparing Q1 2019 against Q4 2019. Q1 2019 was pre-rthm merger, which was completed at end of Q1. Therefore, not a proper comparison. Trmr are following rthm with CTV, so I think Q4 2019 was from rthm.

If for Q4 CTV revenue was $18m then the fy revenue from CTV should have been around $36m-$54m or representing 2 to 3 qtrs worth.
Yet they state CTV revenues at less than 1/10th of fy revenue...

"Revenue from Connected TV (“CTV”) grew from $2.2 million in Q1 2019, to $18.1 million in Q4 2019,
total year of $31.9 million "

https://www.tremorinternational.com/wp-content/uploads/2020/03/TRMR-Final-results-310320.pdf

Also ad tech industry is suffering because of Covid-19 and there's still the other Industry Challenges, like GDPR, CCPA etc etc..

Given they will lose revenue from discontinued operations and CTV revenues were only $31.9m, I believe this years, fy2020 revenues will be below $300m.

Frac,
"Evidences the market and needs for Byot products"

There is a demand for their products at a time like this.
However, FACT - THE COMPANY told investors last week in their TU that their orders are £1.7m to June, up from £0.35m. However, nothing was mentioned regarding figures for any other orders?
Why bother mentioning just that 1 figure?

Where's the company accounts or TU which clearly state that they have tens of millions of pounds of orders and that they are going to make millions of pounds in profits for several years to come? Can you post the link showing the evidence?

A £25m mcap for a short term spike in orders to £1.7m seems steep.

FACT.
Even Finncap, the COMPANY broker, didn't raise their target price after last week's TU. Finncap have maintained their target price at 7p for 2 yrs now. They maintained the 7p target, AFTER the Tristel deal was announced.

Free to register:
https://www.finncap.com/our-services

Those are facts.

Oneandone,
" I see he started on TRMR last month and since then they have gone up and up."

That's simply not the case, is it?.

Everyone can read my posting history. Rthm, now Trmr have crashed from 500p to around 100p over the past 3 yrs and crucially due to EVENTS.. The company stated they are continuing to suffer from Industry Challenges, the same Industry Challenges that I was warning about over the past 3 yrs..

https://www.lse.co.uk/profiles/stt1/

Just proves that everyone should check facts rather than believe posters who are simply trying to discredit.

Frac,
"Fact is they are “Selling everything they can make” "

They said they had firm orders of £1.7m to June!!!

Normal run rate: orders of £0.35m.
Running at full capacity and selling everything they can make: firm orders of £1.7m to June (inc Q1)

£1.7m of firm orders is not a huge amount, if they are 'selling everything they are making', is it?

Does it justify a mcap of £25m though?

Naturally a company would state that their products are the best one.
All company's state on their website that theirs is the best product on the market.

The fact is the powers to be recommend an alcohol based sanitiser on their websites. Byot isn't alcohol based.

WHO:

"Wash your hands frequently with soap and water or use an alcohol-based hand rub if your hands are not visibly dirty."
https://www.who.int/emergencies/diseases/novel-coronavirus-2019/advice-for-public

CDC:

"If soap and water are not readily available, use an alcohol-based hand sanitizer with at least 60% alcohol. Always wash hands with soap and water if hands are visibly dirty."
https://www.cdc.gov/coronavirus/2019-ncov/about/prevention-treatment.html

Also would majority of people use a major product like DETTOL OR BYOT?

Dettol

"If soap and water are not available, use an alcohol-based hand sanitizer"
https://www.dettol.co.uk/about-us/understanding-coronavirus/

Frac,
They have been seeking partners in US for months and have appointed an agency to find one.
If Byot's products are so good, why aren't partners scrambling to sign up.

Even if they sign a new partnership this week, it will take weeks to set a supply chain in place.

" In the US, we continue to seek a partner for Byotrol24 and are now engaged in a number of early-stage discussions. As this process continues we are reducing marketing spend linked to the Target retail trial and are now expecting the in-store trial to lapse at the end of March 2020. We hope to be in an alternative relationship with a better risk/reward profile by this time."

https://byotrolplc.com/wp-content/uploads/2019/12/2019-Interim-Results.pdf

SLF,
"Although I confess I don't often read WHO guidance before a trip to the shops."

However, governments and health services do.

Byot don't supply any supermarkets so it doesn't matter if you read any guidance before going to the shops.

Frac,
From your link

"Appropriate disinfectants with proven activity against enveloped viruses should be used (for example,
hypochlorite [bleach], alcohol, hydrogen peroxide, quaternary ammonium compounds and phenolic
compounds)."

Byot's isn't alcohol based, WHO recommends alcohol based..

Coronavirus: Where has all the hand sanitiser gone?

"Amazon, if you try getting alcohol-based sanitiser - the type recommended by the World Health Organization - you'll find all of the usual brands are sold out."

"Zidac can make 150,000 bottles of hand sanitiser a day, but for the past two weeks the production line has been down. It hasn't been able to get ethanol, the alcohol it puts in its sanitiser, and which has to make up at least 60% for it to kill viruses (and bacteria) effectively."

https://www.bbc.co.uk/news/stories-52126847

Thoth,
Look at the list in the link..
There are hundreds of products on the 'approved' list to fight Covid-19.

That backs up my point that Byot products don't stand out against the hundreds of others currently available..

Byot's update last week stated orders have increased from £0.35m to £1.7m to June, which is Q1.

Mcap is £25m

so is it already in the price?

They increased their orders for the stated period from £0.35m to £1.7m. The period includes Q4, which finished this week, 31st March and they are now in Q1 of this year. It's very likely that Covid-19 will be under control/vaccine within the next year.

The increase in orders in the short term is about 5x.

The sp has already increased around 3.5x since the outbreak started.

The company broker, Finncap, has maintained their target price, despite the TU. Their TP has been 7p for nearly 2 yrs.

Mcap £25m

Therefore, I think any expected increase in sales is already in the price.

There was a small buy of £5.57 earlier and sp rose..

smaller buys to push sp higher and as previous days likely to see larger sells later...

Frac,
"When demand returns"

Distilleries were already concerned about the impact of Brexit on their business.
Also having to negotiate to sell to USA where President Trump was looking at imposing new duties.

Given WHO/CDC recommend alcohol based sanitisar and there's likely to be demand for it for a while, it seems a good new business for distilleries to easily diversify into to.

Eddie,
"that shows prudence on behalf of the company regarding POSSIBLE future bad depths , they have made provision for it just IN CASE."

Not at all. This I believe is the fallout due to inventory payments that I posted about year ago, when Sizmek filed for Chapter 11 protection.

‘It’s the tip of the iceberg’: Sizmek saga spells trouble for ad tech

"Typically, clients pay agencies on average, 90 days after a project’s delivery. Agencies then pay the trading desks, which pay the DSPs. Usually, the SSP has invoiced the DSP with much shorter payment terms — typically 30 days, according to sources. Those SSPs that can offer publishers the shortest payment terms will likely end up with their business.

But this means an SSP can carry in the high tens of millions of dollars in working capital requirements every month. Not cheap. A go-to way to shoulder that additional cost is to take out short-term loans with banks to cover the cost. Those loans wouldn’t extend to when a DSP defaults, however."

https://digiday.com/media/tip-ice-berg-sizmek-saga-spells-trouble-ad-tech/

Provision for doubtful debt has shot up... current $22.3m (2018: $2.8m)
AS EXPECTED.

Note 16B (2)

"(2) At 31 December 2019, the Group included provision to doubtful debts in the amount of USD 22,376 thousand (31 December 2018: USD 2,822 thousand) in respect of collective impairment provision and specific debtors that their collectability is in doubt."

https://www.tremorinternational.com/wp-content/uploads/2020/03/TRMR-Final-results-310320.pdf

and regarding Cash...

from results:
"Net cash as at 31 December 2019 of $76.9 million*** (31 December 2018: net cash of $54.4 million),"

Didn't $28m of that cash come over from rthm, last April?

SLF,
"all these high profile freebies from ineos and brewdog etc just serve to increase the size and awareness of the market for the future."

If anything I think it'll lead to the established players upping production from their factories and if anything I'm sure some will follow companies like InEos and BrewDog and open up a factory to sell alcohol based sanitiser. If Ineos or BrewDog see the demand, they or other distilleries might open up a new subsidiary, especially with uncertainty being created because of Brexit.

Tricky,
"Tremor also remains highly cash-generative, with a net cash position at 31 December 2019 of over $76.9 million."

Ad Tech companies need high cash balances to pay for Inventory. A lot of inventory is paid on 90days terms, so Trmr is currently likely to be paying for inventory from Dec-Jan.

As several rthm operations were closed during fy2019, there won't be any cash contribution from them this year, fy2020.

If Covid-19 continues for months then it could leave them getting short of cash..

The Trade Desk and MediaMath, both huge companies within the AdTech Ecosystem had to raise money because of the way inventory payments work.

"DSPs shoulder this burden directly because they constantly owe money to inventory suppliers. The Trade Desk took out a $200 million loan in 2017 to preserve liquidity while it bridges inventory payments. MediaMath has raised more than $600 million, including $225 million last year."

https://adexchanger.com/online-advertising/sizmeks-bankruptcy-is-changing-how-the-supply-side-manages-dsp-debts/

Frac,
"the need for specialist antiviral surface cleaning agents for the professional environment will both increase 100-250% this year and stay at that level for a number of years to come"

The sp has moved up around 3 times, hence why I believe it's already in the price.
There needs to be some clarity and detail from the company and not just orders to June have increased from £0.35m to £1.7m.

Eddie,

What is your opinion of the results or are you waiting to see what direction the sp takes before commenting?