Member Info for TRQS

With regards to profit, this is the automotive industry, so SED will HAVE to do a QAF with the major players.....if you don't know what this is then you have no idea on how things are priced in this market.

Actually, just looked at the market info I have again, £200 is ok for motor.....

Lincolnite, what are you selling price estimates? I didn't see them?

What should the cost delta be between the price for 3000 units (over some unquoted timeframe) and 80k UPA?

If you actually know what you are taking about the you would say that £200 was being optimistic on pricing......

Page 44 of the last company accounts - Basically £14M in salaries, £4.4M in share options costs, £10M in other expenses. The revenue was significantly higher than the last statement (£3.5M then, £1M now, not including the lastest news). The £14M is inline with the very simple maths of 142 employees with average cost to the business of £100k per person.

In summary, unless there is a significant reduction in head count plus massive increase in revenue l I'm not sure how they can get the £24M (not including share options) down to the £11M they think they can live on for 2023??? Any ideas?

Again, why is no one doing the simple maths on this? 80k units in India with sell price of say £200 and net profit of 15% = £2.4M for such a large volume. SED engineering burn rate was nearly x10 this in 2022........that is the downside of the Indian market which is a race to the bottom (YASA products sell for 5X this figure). SED will NEED to add in inverters and gearboxes too, which I know is in their plans.....

"With £5m rev. from 3,000 units announced in last RNS"

This is obviously good news, but put this in to perspective, imagine it is 15% next profit = £750,000

This pays for around 2 whole weeks of burn rate based on the last years accounts!

FarmerWheeler, please don't take my comments the wrong way, I REALLY hope SED gets back on track and make a success of this. I was looking at this purely from the state of the world, have you tried to buy a Mercedes Benz or Volkswagen product recently? The worlds most powerful automakers struggling to get chips to deliver to premium customers who are paying good money for products versus the Indian market, where I have worked previously.

SED products are for LDV applications, so in a motorcycle the target motor and inverter price combined will be in the region of $200USD, at say a realistic net margin of 7% in the India auto market - so even at 80k UPA its a $16M turn over business with net profits of say $1.3M.......remind me know much the Directors got in the last set of accounts? As above, hopefully more customers will come along now!

? Staff costs based on current head count must be £10M annually, not including senior management remuneration. Biggest investors weren't wise enough to insist on their own people on the board, which is the same team as on the remuneration committee, as also on the audit and risk committee! Even if SED get somewhere on motors, they are a tiny player and will struggle with power electronics supply....even M-B do! No semi-conductor supplier will be prioritizing India over markets with much more margin.....

With a burn rate last year of approx £2M per month......

I've read a lot of comments now, the issue with this company are multiple:
1) There revenue from projects is TINY. Typically a serious OEM would be spending tens of millions in addition to the investment SED are making
2) Serious Tier 1's would be looking at min 3 - 4 years to design and validate a product that could be made in the 80K UPA upwards. Anyone who thinks this can be done in a year or two just doesn't understand the OEM world
3) It is great selling in to India, but has anyone done the maths on the margin that can be achieved on this product in this market versus what the big players will accept?

I really hope SED pull it out the bag, but delivering even a fraction of their plan will be extremely challenging