Member Info for WolfofWarks

‘Anything below EBITDA e.g., bank costs, loan interest, loan capital repayments, depreciation, shareholders divi, capital +|-. Is largely about how the business organises its funding. ‘

EBITDA is an investors best guess at free cash flow from core operating activities.

I would have thought tomorrow offers an excellent entry point for traders.

If they sold on Thursday they wouldn’t be very good traders, unless they had a short bet.

‘ All at sea, I sleep very well indeed thank you, because I don’t own equity like Ocado grp which is a total gamble. ’

So why waste your time hanging round here like a bad smell?

So at least in the medium term and, provided the authorisation goes okay, the bank in theory is funded and will be able to clear the book.

The question we all need answering now is how big is the book?

Mick - is the captive bank not facilitating the funding? It doesn’t actually provide the funding itself? If it does then AZ has some seriously deep pockets. I thought Quadrivo were proving the funding through the bank with TAG (who own/part own) taking a cut of the fees. I’ve not double checked so I may well be wrong.

Hi Doc .... I feel your pain. It took from July to December for me to complete a relatively small additional mortgage.

Nothing happened through its natural course .... I had to chase everyone constantly surveyors, solicitors, building society. No one seemed to care. I even had to have a desktop survey done because my original one expired.

The stamp duty holiday combined with COVID/remote working and no one can cope with the demand. If it wasn’t for the tech, docu-sign, etc, nothing would be moving anywhere.

Also I think with a start up business like this you’ve got to have the founder at the helm. He’s got the vision and knows this company inside out he just perhaps needs help with execution.

If he’s a tech guy, a regulatory guy and a salesmen that’s quite a broad skill set for one person to be the master of.

Perhaps the first mistake was to give exclusivity and effectively all the power to that one funder. Prior to the 30th Oct RNS they were looking at multiple funders.

What’s that saying ‘never put all your eggs in one basket’.

Brave move sticking it all in one chunk, leaves you at the mercy of the market.

I tend to put chunk of £5k in and then look for decent entry points.

Good numbers, shame they were released over this weekend.

Agreed on all points.

I’ve took everyone off Friday. At times like this it’s important to take in all view points.

Plus I do actually rate your opinion and you’re a serious poster.

“I never listen to trolls who continue to spout on about 'true sale' etc. Not bothered about trying to prove or disprove that point.”

Hi Parm - if you’re a salesmen you’re unlikely to be able to disprove the point unless you have some previous technical specialism in accountancy in a previous career. The point will be disproved in 36 months time when there is a large take up of the product from clients who have all submitted signed off accounts and the process till have gone through the accounting wringer multiple times.

AZ said he’s cracked it, we just don’t know the how. But if he’s been working with the big four there must be some wizardry involved.

Anyway don’t worry I’ve got no ambition to drone on about this all day. Just wanted to make the point.

10 clients £100m job done.

Haha my issue it trying to get a toddler to scan the item and then put it on the scales side without throwing a paddy.

NDN - this is where it gets interesting where the old world meets the new.

I’m not going to pretend I understand blockchain and how the tech side works.

I still can’t quite figure out what bitcoin actually is.

“Wolf, that’s the whole point, Syme is not looking at monetisation of most of Tesco’s inventory. They are looking at monetisation of Heinz or companies like that, who hold stock, especially the raw materials (companies that supply Heinz).”

Hi poor - my example was in relation to the points made around ownership of goods rather than it being intended to fit into SYME’s model but yes Syme would be working with Heinz in the chain.

Hi NDN - AZ has said the platform requires clients to be IFRS compliant - we just don’t don’t know how this has been achieved.

I know there has been quite a few replies since. The ownership of the stock isn’t a tax compliance issue so there are no repercussions with HMRC or anything like that.

The potential pitfall is when the auditors of the client company look to sign off the accounts as a true and fair view do they consider the ‘true sale’ to be true or would they treat the income received as a loan and therefore a debt in the balance sheet (which if you were looking at substance over form it should be).

Especially when they examine the stock take and those goods are still in the warehouse and their client has responsibility for selling them onto the end customer. Then on the flip side you have the funder who now technically should have stock in their balance sheet but instead has some sort of digital token that represents his investment/borrowing to the client company through the platform.

I’m not saying this doesn’t work, AZ says two of the big four have looked at it and they are working with them on further compliance. It’s a professional itch of mine to know how they have got around this. I’m not the only person from a finance background on here to raise an eyebrow. If I was to ask AZ a question on this it would be how many of the big four have looked at it? Only two and both agreed, or have all four seen it and two agreed?

I’ll hold my hands up as well and admit it’s not the most interesting subject but this is what Chalker is referring to.

Old Spurs fan - this is a good place to start

https://www.bbc.co.uk/news/technology-56371912

Hi poor - this is where in the t&cs you have to look at whether or not there is anything on retention of title.

I get the premise of what you are saying though. Think of how a supermarket operates. Tesco’s orders baked beans from Heinz and takes delivery in January. They are probably paying Heinz on 90 days, so most likely end of April. Tesco’s has most likely sold those beans and banked the cash in January.

Who owns beans in Feb? Heinz, Tesco or the end customer?