|In Cup Plus
||EPS - Basic
||Market Cap (m)
Real-Time news about IN Cup (London Stock Exchange): 0 recent articles
|cerrito: JakNife,You are corrct to point out that Pac Con and City Equities together is a bad sign.
I do not think that the company is in trouble now but as per my previous posting the share price will remain depressed until all these options/fund raisings have worked through the system and we have a better idea of cash conversion.
To me the company is better than its brokers...this illustrates the structural weaknesses of AIM and also calls into question whether such a small company really needs to have a listing.
ljsquash my hunch is that you have done a good deal but with the wide trading spread and the uncertainty in the next six months you will need patience.|
|mjcrockett: Cerrito, Thanks for the above. Good to meet you at the AGM yesterday. I also came away feeling that ICU are moving forward. They do seem to have a good product which seems to be gaining acceptance in the market place. However, there must be a risk that the big boys will copy the ICU product if it is very successful.
I agree with you that there is the danger that the share price will drift for the next few months. But, with the prospect of strong growth here, there must be a fair chance that someone will tip this before September which would have a big impact on the share price. Difficult call - but an exciting long term prospect.
|cerrito: Was at the AGM this morning.
Big picture is that I got good vibrations from management that there is a sensible business here and that now that they have got some big name sign ups they have the foundation to go forward as they have clients who can give good references...ie they are establishing credibility important as they are up against companies which are much bigger than themselves.Explained that considerable electricity savings, not to mention the maintenance savings compared to the traditional type of machine. Management seem perfectly sensible and of course the CEO is the major shareholder.
The increase in overheads/decrease in COGS in H2 compared to H1 was due to a different policy in classifying cost, bought in my the new CFO.. In hindsight did not press why the loss in H2 was exactly the same as H1 despite the increase in machine sales.
We were assured that with the funding commitments they have enough cash for the foreseeable future- see below
They were encouraged to give more information on the breakdown between revenues from machine sales and from consumables..I understand there are some commercial reasons for this non disclosure.
To me this is not a sell but I do not at this time see it as a buy.
I consider that the share price will continue to be depressed until the Pac Con option agreement runs its course at the end of September; indeed as I see it September will be crucial as not only will this option agreement expire and so lift what will probably be a downer on the price but we will have interim figures, which will give us a much better indication of their success in cash conversion as we have no firm clue as to whether or not they will run out of cash.|
|nigelsom: Placing (and options)news and trading update:
Can't say I'm impressed: £840k to be raised by placing and a further £800k on options to a director and the institution doing the placing. Just the placing alone dilutes us down to 72%. And the discount is massive: issue price of 2.25p against market mid price of 3p. That is about 25%. Except that the statement says it is just 10% down on the bid price - that is, shall we say, a slightly misleading statement: we don't get quoted the bid price when we want to buy shares! Can't say I'm impressed.
Trading statement: sales below forecast - third time in a year we've heard that - but this time it is different because they are confident full year will meet target. Hmm.
I really hate companies that don't play it straight with bad news. I suppose that at least this came out during market hours and not late on a Fri evening. But the 10% bit is a disgraceful misrepresentation: if you were selling shares you would assume that you could deal inside the spread - especially one which is 30% of the share price!
Now if they had simply said that 'having taken soundings we have been told that if we try to get more that 2.25p a share we are having a laugh' then that would have been OK (ish). After all the really small companies are having a bad time on the market at the moment, so it is hardly surprising that trying to do a placing right now is not going to be easy. But to try and make out that the discount is only 10% is bad form in my book.
Oh, and they then have a rather threatening bit along the lines of 'if shareholders do not approve this then...' And they want to do this because of time constraints and cost. But they knew at the results announcement in march they were going to need to raise funds - why the urgency now? Or did they just sit on their hands for four months before finally getting round to it.
End of rant.
I'll hold because this product just might work, and management may learn. But not a happy bunny right now.|
|woodcutter: looking at last years results they turned over 174K with cost of approx 1163K. From Uk Analyst
After a profits warning last Autumn knocked its share price for six, it was encouraging to see In Cup Plus back on the road to share-price recovery. The drinks vending machine group released an upbeat AGM statement, confirming that trading in the current year was in line with market expectations. Its shares rose 0.75p to 4.125p. A total 23 vending machines machines were sold in the first quarter compared with 41 machines sold during the whole of 2005. In Cup said it now had a total of 64 machines in operation and ingredients sales were progressively increasing.
If this is correct the sales cost of a machine is about £4.25K. They need to be selling selling about 70/qtr to break even. This assumes no extra cost on sales or admin, but doesn't take account of any revenue from material and maintenance sales nevertheless i think they will need to come back for more cash.
I like the product but would like to see more evidence of a rising trend in sales before buying in, the risk reward is too high at present.
How do they measure up in terms of cost of machines compared to competitors? i suspect they are more expensive, are they worth a premium?
Anyone know the output capacity of their manufacturing facility? It might give us some idea of how big they think their immediate sales targets could be.|
|siskinbird: I think the RNS is supposed to mean that sales are behind the planned levels because of a slow start in recruiting the sales force. However what it fails to say is whether or not the full sales force is now in place.
I'm just looking back through the info that Daniel Stewart put out for the floatation. It says that they expect to sell 300 machines in FY05. Today's RNS reduces this to 100. And it says they expect to sell 599 machines in FY06, so I guess the big question is whether this is still the company's target.
Actually it's good to see the share price struggling back up to the flotation value. I hold, and still have confidence in this product. As ever, the question is whether management can deliver.|
In Cup Plus share price data is direct from the London Stock Exchange