Syqic Share Discussion Threads

[androyd] 23/4/2016 08:59

The way I see it is Jamal is no longer acting in the interests of shareholders, he's a businessman and I expect he'll want to purchase for the lowest price he can,
and it looks like he's holding all the aces. I'm hoping that someone else will see value here and put in a more generous counter bid. I know it's a long shot but it's what I'm pinning my hopes on, I'm nearing retirement age and I don't have the time to recover from this.

[mikeja] 23/4/2016 05:01

In reality we,as shareholders,are in the hands of Jamal and the board.I met them at a couple of AGMs and came away with a good impression.

[androyd] 22/4/2016 14:21

Thanks bad gateway, I appreciate that.

[bad gateway] 22/4/2016 12:39

androyd
21 Apr'16 - 08:00 - 929 of 946 0 0

What I don't understand, is why money owed can't be collected by whatever means available, if I didn't pay my mortgage payments, I'd have my house taken off me. I'm assuming the Company has tried everything it can to recover this money. What measures are available to the Company to recover this debt?

Seems the company is following the correct path to recover the monies from these telcos. They have to do all they can to come to an amicable agreement before starting proceedings by indonesian law at least.
Next stage would appear to be a letter demanding payment as they've completed the "payment plan" stage imo.
hxxp://www.eulerhermes.com/products-solutions/debt-collection/Land-of-payment/Pages/indonesia-collection-profile.aspx
They do seem to have quite some time to do so with their bank facility in place and low cashburn.

[mikeja] 22/4/2016 12:12

I don't know how you can be so cynical, Masurenguy.

[masurenguy] 22/4/2016 11:55

I did point out this possibility yesterday!

Post 934: "A potential CEO led private equity buyout could potentially buy the business at a bargain price on the basis that even a low price would be better than the likelihood of virtually nothing from any potential insolvency and the price paid would effectively constitute a debtor write-down on the legacy business that Bidco would acquire. They could then focus upon exploiting the existing potential via Fortumo and other payment aggregators to overcome the receivables issue, which is blighting the current business."

The leverage that Bidco has is that a potential low price deal is still a better option than the company falling into administration by running out of cash. If that scenario arose they could also potentially cherry pick the intellectual and physical assets from administration but they would run the risk of competition from other aspirants. Therefore a lo-ball offer might serve the interests of both parties rather than risk an administration and it would also preserve the outstanding debtors which Bidco might be able to partially collect on a deal based upon writing off perhaps 50%. It'll be interesting to watch this play out from the sidelines having exited on the spike yesterday morning.

[androyd] 22/4/2016 11:38

I'm beginning to think this scenario has been engineered so that this Company can be taken out on the cheap. There are a group of significant shareholders who's holdings, when added together, total about 30% of the Company, are we to expect them all to roll over and accept a derisory offer?

[fft] 22/4/2016 09:01

What we need is a further explanation from the board as to what happened to the agreed repayment plans that had been working very well for over a year.

Jamal knows the true position re. the debtors (maybe the only person in the company who does), but he is also making the bid. It would be a shambles if a huge impairment charge is raised, thus lowering the value of the company, it is taken private at a lower price, and then, low and behold, the money is forthcoming from the debtors. Be interesting to see who the shareholders (or their cut-outs) of 'bidco' are....

[androyd] 22/4/2016 08:23

What we need now is a money received RNS, that would put the 'cat amongst the pigeons'.

[androyd] 21/4/2016 17:24

Can anyone tell me why SYQ have been unable to raise working capital through a placing?

[mikeja] 21/4/2016 10:59

No as he is part of Bidco.

[androyd] 21/4/2016 10:57

Can Bidco buy shares?

[mikeja] 21/4/2016 10:38

Someone asked earlier if Hassim could buy stock in the market,the answer is no because the shares are in a close period.

[mikeja] 21/4/2016 10:36

Someone asked earlier if Hassim could buy stock in the market,the answer is no because the shares are in a close period.

[mikeja] 21/4/2016 09:17

The reason they have not gone after the debtors is because that would jeopardise future business. There comes a time when this must stop and any deal,of the sort that materialised last time,is probably going to be done best in a private company.

[masurenguy] 21/4/2016 08:55

Just a small part of my portfolio but I took advantage of the spike at the open and sold my stake. It's a business with good potential but the trading update demonstrated that the increasing debtor position is deteriorating and not improving as expected. That is the key factor as far as I am concerned since the previously agreed repayment/collection schedule is obviously not being maintained.

Since the two prime customers are overseas companies who account for over 90% of the business, there is little that they can do to recover receivables if they are delayed or not paid. These two debtors alone account for the annual sales of the whole business - circa £11.7m - and total debtors - circa £14.1m - account for 120% of the annual turnover.

The business is viable if it can significantly write down, or even write off, the legacy debts but the existing company would only be in a position to do that if they could raise significant new working capital from existing, or new, investors. I doubt that the existing entity could do that so it raises questions about the future financial viability of the existing business especially if these receivables are going to be subject to bad debt provisions in this years accounts. Even though an investor like Utilico have more than doubled their stake in SYQ over the past 12 months, this is still a very small part of their portfolio so a write-down on their investment will not be such a big deal for them.

A potential CEO led private equity buyout could potentially buy the business at a bargain price on the basis that even a low price would be better than the likelihood of virtually nothing from any potential insolvency and the price paid would effectively constitute a debtor write-down on the legacy business that Bidco would acquire. They could then focus upon exploiting the existing potential via Fortumo and other payment aggregators to overcome the receivables issue, which is blighting the current business.

There are far too many financial risks going forward where the present quoted entity is concerned and if some sort of discounted deal is not concluded with the existing potential bidder then a possible insolvency or a third party acquisition at a distressed price could eventually follow, unless they can suddenly obtain a payment of several million from their existing debtors. The history here does not suggest that this is a likely proposition. Good luck to those who continue to hold.

[mikeja] 21/4/2016 08:48

Just kidding,yump.

[androyd] 21/4/2016 08:35

Just think where we'd be if we had received all money owed. The share price would be 100p+

[mikeh30] 21/4/2016 08:24

It's not even available on all platforms yet.60p. Some informative posts on Lse

[yump] 21/4/2016 08:12

mikeja

I can't be bothered to sell, its a small investment in the punt part of my portfolio. Unfortunately its all money though, as they say.

[androyd] 21/4/2016 08:00

What I don't understand, is why money owed can't be collected by whatever means available, if I didn't pay my mortgage payments, I'd have my house taken off me. I'm assuming the Company has tried everything it can to recover this money. What measures are available to the Company to recover this debt?

[mikeja] 21/4/2016 07:59

Yes,yes but that is before yump unloads his holding.

[androyd] 21/4/2016 07:47

Well the above chart is showing a 3.5p increase.

[yump] 21/4/2016 07:41

There's only one question really.

Why is he interested and why wasn't he interested at 60p, 40p etc.

For that reason I would love to see a complete breakdown of the share register before float up to today.