The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The prospects are dire Yoshie. There's a never ending series of placings since the company is fundamentally unviable.
Its controlled by an offshore party which is effectively Lance O'Neill a guy which has been in position since day 1 and has presided over a near total wipeout of shareholder value.
I think there is a good chance this money pit of a company will delist.
MediaZest – argues set for ‘much improvement’… but is it really?
By Steve Moore | Friday 27 September 2019
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from *************). I have no business relationship with any company whose stock is mentioned in this article.
Audio-visual systems for organisations-focused MediaZest (MDZ) has updated including that “two large projects set for completion in November/December… should generate significant profitability in the quarter ended 31 December 2019” and “new business enquiries in recent weeks have markedly increased and several potentially significant opportunities are being pitched in coming months”. The shares have responded currently more than 14% higher to 0.08p…
However, it expecting to build upon last year’s profit is stated “pending successful upcoming pitches” (of course, far from guaranteed) and “despite the economic environment”. Indeed, “the first half of the financial year has proved difficult against a challenging macroeconomic backdrop in the UK, felt particularly keenly in the retail sector. This has been mitigated somewhat by cost savings implemented at the beginning of 2019 and ongoing contractual revenues which continue to renew at a healthy rate”.
“Mitigated somewhat” means not wholly mitigated then and there is reliance on “the second half of the year is set to be much improved”. However, last year a half year to 30th September profit of £90k on revenue of £1.8 million developed into a full-year just £6k on revenue of £3.3 million. Now there’s been another “difficult” half but we’re asked to believe in a “much improved” second half in a “challenging” macro environment – and it can only say even that is “to build upon last year’s profit for the current financial year”.
Additionally, even that £6k profit saw a net current liabilities position slightly increased - to £0.99 million - and net assets slightly lower at £1.819 million and including £2.77 million of intangibles. As such, although “further projects for Ted Baker, LuluLemon, Pets at Home, Tiffany & Co, Kuoni, HMV and Hyundai have been completed or are in progress”, I suggest the half-year numbers will re-spark concerns here and my stance remains avoid / sell.
As I've pointed out previously this company is being valued at a fraction of the current share price by the other Lance O'Neill company, EP&F. Correctly so imo. You need to take account of the £1m in net current liabilities when trying to value this business. Note Im using the word "business" in its loosest possible sense. So is it significantly overvalued? Of course it is. This is no bargain.
Yet another BS trading update out this morning.
Shareholders, or potential shareholders, can infer less than nothing from it. However as a long term watcher I'll assume it means they are still losing money and a placing is on the cards at some point this year.
Exactly. In fact in my opinion the chances of delisting are now high because I'm now almost certain it is only insiders subscribing to the placings. If that is the case why do they need the listing at all? They can save perhaps 100 grand per annum by removing listing costs.The company is not viable IMO.
This company is a joke and you are going to lose all your money. As a shareholder all you have to look forward to is continual losses and continual share dilution.
This stock belongs in the toilet.
There's nothing else I can say.
The latest placees are already sitting on a 20% paper loss. Not bad going. And not much to look forward to either given the outlook statement.
I really would love to know who is contributing to these placings. I mean it would be hard to find a more unattractive investment. The only logical conclusion I can come up with is vested interests. I don't believe any independent 3rd party would subscribe for shares in this effort. We know Lance is taking 60 grand a year so it makes perfect sense for him to contribute £10K in the placing if it helps keep the company solvent.So maybe other employees are doing the same? Or maybe there are other offshore companies, owned by the directors, subscribing.
I still rate the equity here as worth zero. The financial liabilities are a million quid and wipe out any value int the shares of this perenially loss making effort IMO.
DYOR
Its almost like these buyers haven't done the slightest bit of research in the company's true ownership. Why would anyone take a stake here knowing O'Neill/CCCAL control the company and can call in a loan that will sink the company. Surreal.
History would advise you to completely ignore news, and the value of, of new contract wins. They are completely misleading. The problem is they need sizable contract wins every year just to keep standing still. Recurring revenues are only £0.7M. And we have no idea if any of these contracts are going to result in a profit.
Im amazed these shares have held up so well today. An extraordinary share price performance.
Exactly. The 10 grands worth of shares Lance bought in the placing were effectively a gift. He received a 10 grand pay rise (20%). Remember Lance is a part time non-exec with multiple directorships. Why he was given a pay rise is a mystery given the total value destruction that has occurred since he has been present at this company.
Does the new 6% holder know CCCAL can call in their loan soon? Every year CCCAL (almost certainly aka director Lance O'Neill) must pen a letter primising not to call in their loan for another months. I can only assume InurFace haven't bothered to read the company accounts! They've also not spent 10 minutues googling CCCAL. If they had they'd know this is completely uninvestible.
You mean O'Neill. Recall he was given a 20% pay rise last year.That pays for the pathetic 10 grands worth of shares he bought in the placing.
O'Neill has presided over a 99.8% reduction in share value since IPO. He's a non exec with multiple directorships. This is a part time job for him. Probably spends a day a week on it. Do you think he deserves 60 grand a year for his achievements with MDZ so far?