Member Info for Theanalyzer

RTOP owed millions by AZ company put out results after market close just before Easter holiday.

They show tiny revenue, negative gross margin and huge loss.

What a dog of a share.

Interim results promised by 31 March and today is last trading day.

Suspect they might slip them out at end of day

Given issue of 1.5 billion new shares to TAG around 2.5% of issued equity a new TR1 should arrive shortly.

A positive move for SYME as it reduces their debts, small dilution for shareholders by using artificially high share price.

TAG admits it is trying to raise finance using SYME shares as collateral I.e it needs more cash to pay off SYME working capital requests.

No mention of status of £1.766 million still owed by TAG to SYME as at 29 February 2024.

No new cash raised by SYME or TAG by today’s news.

TwoGood2Die

My understanding of SYME’s product is that once a facility is granted then the customer can draw on that facility and as inventory is sold, it is likely that new inventory will be added and financed. The IMs so far proposed are multi year deals.

On that basis the lending under the facility isn’t going to represent a high quality liquid asset so I don’t agree with your assertion that banks will be financing the SYME with their liquidity assets.

Also I doubt that HSBC a multi trillion asset bank is watching a €10 million transaction closely either.

TwoGood2Die

SYME needs the loans from TAG to fund ongoing trading losses without which it will go bust unless it can raise alternative finance.

TAG and SYME are not in a group. TAG only owns just over 24% of SYME.

Yet despite these obvious errors in your post you get 3 recommendations proving the poor understanding of many SYME investors.

Chewy8uk

If TAG have money why are they continually failing to pay the contractually agreed amounts due to SYME and RTOP as set out in numerous RNS announcements for last six months?

They are liable for 15% interest on late payments.

You have no answer to the question do you?

Chewy8uk

TAG don’t have the cash why else is it going to pay 15% interest on overdue payments to SYME and RTOP. You can’t earn 15% on U.K. cash in the bank.

How would the warrants help?, they are out of the money I.e anyone exercising a warrant at present has to pay more than the share are worth and you need to pay SYME cash which TAG doesn’t have.

There is a reason why TAG only talks about the two expired share loans because AZ knows he doesn’t have to find the cash to get the share back because the contracts have legally ended around 9 months ago.

The third share loan for 3.5 billion shares doesn’t expire until 2027 so TAG could end that loan and recover the 3.5 billion shares. TAG won’t because it doesn’t have the cash to repay lender just like it can’t make timely payments to SYME and RTOP.

When RTOP publishes interims next week we will see how much it is still owed by TAG group.

Chewy8uk

If TAG have cash why are they not paying SYME and RTOP on the contractually promised deadlines as has appeared in multiple SYME and RTOP announcements?

a) they have the cash but like paying SYME and RTOP 15% penalty interest on late cash payments as set out in the RNS announcements? Or

b) I am gullible fool and believe everything AZ tells me?

Rudeboy

Mate if TAG were to buy back shares they would have to pay the price in original stock loan not current share price otherwise the lenders lose a lot of money which just how such deals are structured.

Also TAG have no cash if they did they would be paying SYME the amounts requested.

Phoenix transition from a closed book consolidator to an active life company writing lots of new business isn’t without a lot of execution risk but it does mean that Phoenix isn't going to shrink in scale over time.

The Standard Life pensions savings business is starting to grow rapidly.

The legacy business will throw off profit and cash and release capital over time.

I continue to hold

Given TAG has not been paying loans to SYME and RTOP on basis requested where will it get money to buy back shares at double current share price?

Also if TAG want more shares they could turn loans being made into shares reducing SYMEs debt and improving its financial position

Two of the loans terms ended last summer and it’s only now that shareholders hear about the situation

All sounds a bit dubious to me.

RTOP was historically grotesquely over valued due to low liquidity in its shares.

Its revenue for last three years was around £1 million and it was loss making.

It is owed millions in unpaid cash draw down requests by its controlling shareholder who has consistently failed to pay on

It’s utter dog and one for traders who like high risk punts only.

SYME’s stake in Tradeflow was fair valued by SYME based on sale price of £2 million for 81% stake at just £352,000.

In SYME’s 2021 accounts you can see that when SYME purchased Tradeflow it paid just over £7.1 million upfront and had a further £4.5 million in deferred consideration, a total of just over £11.6 million.

So I don’t think SYME will be getting £6 million for its 19% minority stake in SYME.

The Proactive analyst report of 27 May 2020 on SYME’s website suggests that it had undertaken 2 initial IMs in 2016 and 2017. So if that report is to believed then SYME have been in start up mode for almost 8 years!

Next two weeks should be key as RTOP is due to publish interims which will provide update on its financing or lack of it from TAG and SYME should be providing an update on WL IM.

Maidit

Iconic will effectively be buying ITS if deal proceeds using its shares. The holders of ITS are not going to give you their company for nothing and won’t be over paying for a listed shell. Icon is likely to be valued at a couple of million tops imho.

Iconic is a Standard Listed Main Market company and it isn’t that expensive to gain a standard RTOP listed last year at a cost of just over £1 million.

Ria

No doubt Ria you sold before latest new 52 week low. LOL

TwoGood2Die

What cost of sales are you deducting from revenue?

In last two and half years ex Tradeflow, SYME has operated with negative gross margins.

SYME might get to positive and high gross margins but they are a long way off that at present implying that there is a lot of fixed cost and or manual effort involved in the revenue currently delivered.

In the Style raised a lot of money for selling shareholders and was sold for just £1.2 million. Shareholders lost over 99.5% of their money in around 3 years.

I wonder much Iconic shell will be paying for the RTO?

Lse99

VRS lost £3.4 million in last six months.so Versarien Korea saves £250,000 in six months and Ricketts saves around £120,000 so Versarien still loses a lot even after removing your two items.