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Looks like a slight miss on the bottom line. I would like more info on the debt situation…
I've also done a quick thread on X - views welcome! https://x.com/Trendz_LSE/status/1752631608509698486?s=20
morning, gents. my reading of the timings is as follows but please correct me if i’m wrong:
1. shareholder vote - wed 7 feb
2. completion within 3 business days but expected on thur 8 feb
3. management presentation - fri 9 feb
4. new forecasts / broker note week commencing 12 feb
looking at the numbers for the continuing business is getting me excited! the growth is incredible and the reduction in overheads and finance costs is going to move the dial on net profit quite a lot. add in the cash in the bank and i really feel the market is seriously miss-pricing this. back of *** packet it should be closer to £50m market cap post close, imo
What am I missing?
Woof. This is going well
Going v well here - 25p soon IMO
I don't pay attention to pie in the sky broker target prices unless they are substantiated by a proven track record of revenue and net profit. However, the forecast figures (e.g. forecast revenue, spend and loss) comes directly from the company. The forecast is for a loss of £31m this year. Do maths. cash runway extremely limited.
Absolutely terribly strategy to try and land a commercial deal when you have a few months cash runway left. With the huge bond already taken out, no other traditional debt is an option. You’re then relying on a placing. The placees will demand a ruddy good discount, unless there is a white knight. All in all, there is one hell of a lot of hope required to get comfortable with the cash position. I’m shocked this is still being given a £300m valuation.
The Sarcasm backed up by any logic? A placing is the only route option to company bar a Hail Mary save the day commercial deal coming in at the last minute. AIM placing for a broke company, you’re probably looking at 30% discount. So around 60/70p depending on SP weakness in the near term
Also factor in the fact the company are now in debt at a level that exceeds its annual revenue and this is looking in severe financial distress. Full disclosure: I have a very small short on AVCT. Welcome to be corrected
How can the company be funded to Autumn? £26m cash 7 months ago. Losing £31m a year as per updated broker notes (which equates to £2.58m a month). 7 months at £2.58m totals £18.1m meaning there is £7.9m left in the kitty. Or the equivalent of 3 months!!! That is absolutely mental for a company valued at £300m. Any negotiations will be from a position of terrible weakness.