Tyratech (DI) Share Discussion Threads

[serratia] 03/1/2017 13:06

Thanks Michael,

I'd used the correct number of shares in the previous calculation and that gave a M.Cap of £20.3m. No idea how it splits between the two share set ups.
As for valuing Vamousse I just value the company on cash flow as it's easy to modify the profit figures but cash is the bottom line. I use operating cash flow as that's what they generate. I also look how the cash is spent which drops down to another version of cash flow.
Other figures I check are stock days in the half year it was 127 days which is high and uses up cash. Of course the high stocks would be necessary if sales are growing rapidly. I'd normally look for 30 to 40 days at most. The payment terms are also important as that's the number of days it takes for the customer to pay. Terms are often 30 days end of month so 30 to 60 days. TYR are hit with 121 days which is probably the big customers using (abusing ?) their buying power.

[mudbath] 03/1/2017 11:50

michaelsadvfn
Agreed,for I too would consider the companion pet market to be the ultimate target,particularly if the name Tyratech,on the back of their existing brands ,such as Vamousse,starts to resonate both with the public and with retailers.

[nobbygnome] 03/1/2017 11:39

I suspect it might be domestic products such as floor cleaner. I remember they developed this 4 or 5 years ago.

[michaelsadvfn] 03/1/2017 11:27

serratia,

There are 220m TYR shares in issue x 1.875p mid

There are 148m TYRU shares in issue x 2p mid

Add the 2 together to get the market cap. There are also 1m shares in treasury.

mudbath,

They will not be selling the jewel in the crown that is the formula(e) for companion animals. They already have proof of concept but don't have the funds to take it forward just yet.

[serratia] 03/1/2017 11:18

mudbath,

I'll have another look later. What's the deal here with the M.Cap ? The header gives £2.96m, another one give £4m and google gives £7m. How many shares are out there ?

[nobbygnome] 03/1/2017 11:10

>> michael

Thank you for the reminder of what was in the interim report! I don't think I actually read it all the way through at the time and so have done now. It has all the more convinced me that a market cap of 7 million is ridiculous! There are so many strings to their bow now that they are not absolutely reliant on any one product. Releasing some value from their patent portfolio would be very beneficial especially if there was some upfront cash to negate any need for further funds. Not sure how likely this is but it just shows the wide potential of the company.

Onwards and upwards

Nobby

[mudbath] 03/1/2017 10:36

And that/those assets in all probability would have to be intellectual properties.
Maybe a patented formulation to address fleas nits and ticks in dogs and cats etc,for this should prove both topical and valuable.
A T/U would indeed be welcome imo.

[michaelsadvfn] 03/1/2017 10:21

Nobby,

Take a look at Jose Barella's comments in the interims. He talks of non-core asset disposal.

[nobbygnome] 03/1/2017 10:18

>> mud

When you say 'sale of non core technologies', what technologies are you referring to? I was not aware they were looking to do this but if so, it could be a very positive development.

TIA
Nobby

[michaelsadvfn] 03/1/2017 10:06

serratia,

...when the M.Cap is £2.95m.

The current market cap isn't £2.95m, it's £7m.

I'm guessing we'll see a business update this month.

[mudbath] 02/1/2017 21:40

serratia
Thanks for your useful input.
The BOD worked their butts off through 2015,possibly justifying their significant remuneration.
I believe the overall figure will show a reduction in the current year.Timing differences led in part to the level of cash burn.
There do seem to be several positives waiting to be highlighted in future interviews with Bruno Jactel.
These might include news on the sale of non core technologies,clarity on PureScience market penetration,expansion into additional markets and as you say,a normalization of lice infestations across the USA,etc.
Jim Hills,a non exec,purchased stock at 2.5 pence only a few months ago.
I could well be wrong but at sub 2.20 pence to buy the shares do look attractive.

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[michaelsadvfn] 02/1/2017 12:44

I'm talking about the value of the Vamousse brand if it were sold. It would go for a multiple of earnings....10x....15x?

[serratia] 02/1/2017 11:52

M,

I'm not sure of your question, are you asking what value a brand is worth as an asset on the balance sheet? On that point I have no experience of how to value a brand name.
If you're asking about future sales growth for Vamousse alone I haven't made a specific product growth rate increase I just upped sales by a percentage. Happy to look closer to see if the percentage increase guess should be changed.

[michaelsadvfn] 02/1/2017 08:47

serratia,

What value would you put on the Vamousse brand bearing in mind it is generating probably upwards of $8m annually and has, at the last count, 7% market share with margins approaching 70%?

With a capitalisation of only £7m the market is not pricing in repeat revenues here, imo.

[sefton1] 01/1/2017 23:39

We need to pour some Vamousse over Professor Pityful to get rid of lice like him from this board

[serratia] 01/1/2017 21:02

I've followed TYR for some time and have not invested yet. As it's a quiet time I thought I'd have another look at the prospects.
At first I became interested as the science is quite compelling. DEET has/had the market to itself and it's not perfect by any means. I held off for two reasons - I needed to see that they had the ability to develop the market. The big negative for me was/is the boards pay packets. BJ took £350k in 2015 with the non execs taking another £200k+. £550k+/yr when the M.Cap is £2.95m.
It's just a personal thing, I won't buy into companies where execs take too much from the shareholders.
Looking to the future I've run a spread sheet to see if in the next year or two the profits would cover their salaries. Firstly nobody can predict the accounts accurately and I've had to make a number of assumptions so feel free to chip in with modifications.
What caught my eye was the half year statement that they have enough cash to see them through going forward. At the half year they burnt through $1.6m and have $2.1m cash left. This implies cash burn is set to fall significantly.
So time to play with the figures - Sales are H2 weighted but they're saying there are less lice around so I took a sales increase of 11% in H2. I've no steer on COS and overheads so I've kept the GM percentage constant and overheads the same as H1. The increase in sales drops the operating loss for H2 from $1.6m to $1.1m.
On to 2017, the lice make a comeback and new products start to contribute. Let's say sales grow by 30% with GM/overheads staying level. That would drop the operating cash loss to $175k. If that's how it pans out the $2.1m cash is sufficient.
On the same basis - constant costs/margins/30% growth 2018 gives a $2m operating cash flow.
So on to valuations - I look for 15* OCF as a M.Cap. For 2018 this would give a price of 5.5p. Two comments here - they may give themselves some more shares,also the market tends to look a year ahead. Markets also tend to over or under react. 2016 has just ended so we'll know the results by the end of March at the latest.
Will all the above materialise, who knows,it won't be totally accurate but assumptions have to be made.
Feel free to fire away with corrections.

[mudbath] 01/1/2017 20:12

The share price should speak for itself through 2017 whilst the thoughtful input from thread regulars will ensure the thread remains vibrant and informative.

[darryn1] 01/1/2017 18:18

I've been doing some DD on this company. As a US company , can anyone tell me why they are listed here instead of Nasdaq?