MrCalm5415 Apr 2014 22:05
From trading update 27 Feb 2014: "2013 results, due in early April, will not be particularly meaningful in view of the company’s start-up status and the exceptional problems, both financial and commercial, which prompted the formal business review in the second half of last year... First half EBITDA was a loss of £3.6m on revenue of £5.1m..." So we would need to see a substantial increase in second half year revenue to merely recoup first half loss. It does seem that ZZZ is expanding rapidly, but part of the reduced operational costs included "permanent headcount down by two-thirds". Still will surely impede growth longer term? Further, without the prospect of a div, why exactly would a loss making business see its share price almost triple? May do so in a few years time but don't think we are there yet. I know loss making OCDO may be in people's mind, but that had Goldman's backing and technology to boast. Not sure what the case for ZZZ would be? Just my 2 pence and as I am long would be happy to be dead wrong.