Not a good report is a massive understatement. I don't even understand how things could have gotten so bad. I heard from quite a few that they were going to nail their prospectus targets. Looking back on the March Investor update, everything looked fine. COB $4m, integration, synergies, new businesses wanting to join the fold. Prospectus targets for EBIT and Revenue on track
Then a double whammy in two days. First the Fact that instead of confirming 20m Rev for 1H17 it is 15m, and EBIT of 0.8-0.9 vs 3.3? But secondly, the dreaded quarterly after hours on a Friday. Come on, are you kidding? There should not have to be a strategic review for a business this early since it's IPO.
Supposedly 43mill Rev FY17 with 2nd quarter 4.8m in receipts is now looking like 20m FY revenue not 30? Time lag? Even if you strip out the 1.4m working capital costs they were barely CF positive & 30k is nothing to rave on about. Unless I am missing something?
@stardestr0yer
The only thing I can see that is positive in this is that it's priced for disaster when it might still be profitable and that all the vendors have stock in the business. But this strategic review needs to be 100% first rate to restore people's confidence. And with only 1.2m cash in the bank vs 15m outflows I cannot see them getting by without a CR, unless they get the steel fabrication (Barden) order out of nowehere, but it is slated for Q417?
