Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Topdog21 - their website is at https://www.fresho.com/
To give you an idea of how adaptable the management team are they accelerated part of their strategy. I quote from the April 20th 2020 PRIM quarterly update RNS in the section about Fresho...
"Fresho is a business that we first invested in back in 2017. It has since then developed a business to business ('B2B") platform for wholesale suppliers to seamlessly fulfil many thousands of fresh food orders a week across Australia, New Zealand and now the UK. The key point of Fresho is it allows many large and highly sophisticated businesses and less sophisticated ones in the supply chain to interact and trade via a single source and neutral platform. This platform generates huge efficiencies for all participants by reducing manual inputs, integrating with accounting and stock management systems and invoicing and generating sales tax reconciliations. Since we invested, the upward trajectory of gross order volumes has been impressive and the company finds itself in a strong financial position having reached a position where it could be EBITDA positive if it chose to spend less on growth.
Clearly the current crisis has and will significantly impact the volume of B2B business with restaurants and venues closed and or heavily restricted. As a result, several key suppliers asked if Fresho could be spun around to allow sales direct to customers like you and me, business to customer ("B2C").
Out of crisis often comes real opportunity. In the week or so since Fresho began turning B2B suppliers into B2C vendors, demand has exploded. At the time of writing and solely by word of mouth over 25,000 households in Australia and New Zealand have signed up to Fresho order-for-your-home.
Whilst B2C was always on the roadmap for Fresho, the strategy had been to continue to focus on the extraordinary growth in the B2B business. Since the world changed overnight, Fresho now finds itself on a potentially game-changing path with both business streams growing in parallel.
Significantly, Fresho has continued to add a number of large food wholesalers for its B2B business as well. It is likely that many of these have been spurred to make real business process change in light of the current crisis to ensure they are competitive when the world returns to normal.
Fresho has significant cash reserves to weather the current dip in B2B business and so, despite an inevitable short-term hit to gross order volume and revenue, we believe Fresho will emerge as a significantly stronger and more financially diverse business. Given sectoral valuations of B2C businesses are often higher than those of B2B (owing to higher margins in the former compared to the later) we also believe the potential exit for us as shareholders may be much higher should the B2C business continue to grab customers."
With credit to Golden Prospect on the “other site”
https://www.businesschief.asia/technology/zuuse-completes-acquisition-cloud-management-firm-fm-innovations
https://www.fminnovations.com.au/about.html
Interesting that Rogue Baron Ltd has changed its name to ROGUE BARON PLC last month and is apparently about to have an AQSE listing. The connection seems to be D Strang as previously mentioned (he was at PRIM and also at Gunsynd who are also an investor in ROGUE BARON PLC. They have partially converted a CLN into shares.
Surely, there exists a contractual obligation for ECP to purchase these shares at the price agreed. Otherwise every "subscriber" to an IPO could hold off for 6 months to see whether the price had moved against them or not. I'm more concerned that we are trusting this ECP "outfit" to be our advisor. If they have pulled stunts like this before and get a reputation in the marketplace it may well tarnish TruSpine's brand
Yup jamesc7, sounds like we've got some big "sticky" shareholders. That shows some serious commitment to the company doesn't it. No placing, no dilution so, if someone wants these they have to buy in the market. If you take RL and the recently disclosed shareholdings from Sep 2020 onwards then that's more than 32% in sticky hands. I know of a few other "minnows" of 1% or so that boost that to 40% so the public float is getting smaller. I suspect that some of Mr Hemming's shares may have come from some impatient sellers on 15/02/2020 redeploying their cash into anything with BTC in an RNS
- more than 5M shares out of a total volume of 7M were labelled as Sells but the price held up pretty well.
Testing321, interesting Wiki bio at https://en.wikipedia.org/wiki/John_Hemming_(politician) - I would make sure you're not drinking anything when reading the Personal Life section :-)
From Companies House filings his latest forays seem to have been in software filing MTD VAT Returns. The latest accounts for his main company show bank balances of just under £4Million as at 31/08/2019 up from zero/overdrawn a year earlier.
https://find-and-update.company-information.service.gov.uk/company/07728574/filing-history
Yes, just over 14% pa...
If investors wanted a lower risk return of say 10% with necessary safeguards PRIM could undertake the commission of the sites and still have an ongoing share once all costs covered by investment from external investors
That's useful Testing 123, thanks! For a comparison of yields etc. the costs of each project are at:
https://www.renewablesfirst.co.uk/windpower/windpower-learning-centre/how-much-does-a-wind-turbine-cost/
Looking at both pages it seems that bigger is much better and we have got the cash. If we have buy in from some pension funds into these SPAC companies that would allow a few of these to provide a sustainable income stream.
Hi Testing123 I was wondering about that. Unfortunately, some of the candidates I had thought of now no longer seem to fit in to the new eco friendly direction - some UK onshore oil projects give reliable income and, with a bit of extra investment, can have production bumped up further.
That's true Speculator1 but that was under previous management. Alastair Clayton saw a particular opportunity in a sector and location he knew well and it just happened to be listed. The new BoD have different skillsets (fairly sure none of them are qualified geologists) but, particularly after recent market surges, best value is probably still with pre-IPO and unlisted businesses.
Mkx007, where have you picked up that the board would be chasing BTC?
Nov 27 announcement said “The Board has recently received several potential investment opportunities, which it is currently reviewing.”
Nothing changed in the latest update from what I could see.
Frankly I hope that PRIM doesn’t use its cash to chase whatever BTC, CBD or gold bandwagon is the flavour of that particular week. They use the word ‘investment’ which suggests longer term
Hi Testing321 - the phrase used in the update was "we would like to provide an update to our shareholders of those two larger investments which we have focused most of our time on to date" which doesn't seem to take a view on the importance of Zuuse it's perhaps just not where they have been devoting their time in the last 3 months.
I would expect that shareholders will be updated by Zuuse from time to time (especially if the pension funds we co-invested with in November 2020 request it as is their right with an Australian 'small proprietary company' which is what Zuuse seems to be.
There won't be a quarterly update, that was something Alastair did. The new BoD will announce anything that needs to be announced by RNS but don't expect quarterly updates - they are time consuming to put together and several of the investee companies don't update very often.
In one way it's a shame as AC's reports were always a good read but I'd much rather the directors carry on their work behind the scenes without distraction to create more value in PRIM.