Member Info for WolfofWarks

“Its my gut feel as to why large corporates are now a Syme focus, it allows compliance with the current International accounting regs.”
MrMarky - AZ said as much in the recent interview.

The £20m and £6.5m were the projected annual revenue from IM1 which hasn’t happened yet so will be in the 2020/21 accounts in twelve months time.

These figures are potentially higher now anyway which hopefully we will find out in the next proof of concept RNS.

The platform integrates with the clients inventory system. AZ mentioned this was another reason why we’ve moved to medium and large caps.

How it quite does this I’m not too sure. I would think the clients system would probably need to be running a large out of the box ERP with little bespoke. That said IT folk are clever little buggers!

I original thought we were already running and that’s what the gross originations are referring to, however it was pointed out to me that these are potential customers waiting to be monetised. Maybe AZ is referring to the pilot companies - I think there were three in Italy.

Not too sure what people are expecting from the results. The revenue will be tiny and presumably relates to the pilots in Italy. I think in the interims there was about £400k. The headline will be the writing off of the original valuation of the business at the prospectus date which was £225m. So they’ll be a large loss albeit in paper form.

What it will give us an idea of is what early costs we have and also how much cash was in the bank at the end of September.

Syme competes on two fronts 1) against other forms of finance (mainly RCF and ABL financing) and 2) against other sources that require funding.

I get the point though it does have the feel of an AIM stock.

I have to remind myself occasionally, or the stamp duty charge does that for me!

I don’t quite understand his point about dilution? We had a large number of shares from the outset.

Possible negative perception of penny stocks I guess but if you invested £10k and there are 32b or 32m shares in issue you still own the same relative % of the company.

I think he is suggesting there has been massive dilution in the past, which there hasn’t.

All the fishing talk makes me laugh. It’s such a tiny part of the economy but politically so important.

I’ve had my doubts all the way along but based on the price action over the last couple of weeks 1p by end of year is achievable. Especially if we keep having the compounding of 10% days.

If we get an RNS on the end of month update and SH isn’t complete I’m preparing for it to go the other way as well.

Bombay - this is where I differ. I don’t think any if these points have been answered - in fact until the interview the other week I don’t recall either the accounting or regulations being addressed before.

Midsummer - if we are talking substance over form then the corresponding credit would be a liability on the balance sheet and therefore a loan.

The existing framework defines what the substance of the transactions are purely by the nature of how they are posted.

Thing is the FTSE 100 is global so less likely be impacted by singular regional issues. The medium to small caps should be more affected by uk/eu issues. Sterling strengthened considerable last week so it probably offset somewhat.

The immediate problem will be getting hold of the stock in the first place. It’ll be stuck at the ports or waiting to enter.

There’s still loads of containers of stock around the world all in the wrong place from the outset of COVID.

Yeah and I think reducing the pension relief to 20% for higher rate payers in pretty much guaranteed.

It’s done the rounds before though.

Actually one last last bit of obvious advice and based on something I read on GGP the other week. Even if your only putting small amounts in think of your tax wrapper, either ISA or SIPP.

There was a young lad who only earns £28k a year and he’s sat on a £250k gain and has got to pay tax on it.

To fail to prepare is to prepare to fail.

Right one last piece of advice as it’s not the most interesting subject. If you are a 40% tax payer and earn between £50-£60k a year and have kids you will have to pay back some/all of your child benefit. You can use pension contributions to bring your taxable income back under £50k per year and keep all your child allowance.

Actually I’ve re-read it again and we are on the same page ....

Actually I just re-read the post. We are not on the same page at all lol.

I think it will come down to whether or not we can achieve funding for the potential monetisations. Quite often in an economic shock investors and capital run to the safe havens.

A very basic synopsis:

Strengths
Innovative
Not very capital intensive
Multiple income streams

Opportunities
First to market
Highly scalable
Multiple funding options

Weaknesses
Unproven concept
Accounting compliance
Concentration on only one class of assets

Threats
Regulatory approval
Competition from other forms of lending
Competition for funders and capital