7digital Share Discussion Threads

[dickiebird2] 17/8/2018 13:55

More news on the way

[michaelmouse] 17/8/2018 13:51

post 3669 - Have they won a contract with OptiBiotix then?

[smithie6] 17/8/2018 10:13

...another 'big' contract with a co. with no turnover !!

[dickiebird2] 17/8/2018 09:34

Can we stay above 5p ?

[bakunin] 17/8/2018 09:12

Is that a new bit of info that they are working "directly" with Amazon on providing a music bundle for the Echo?

[tiger60] 17/8/2018 09:01

7digital ready to "Rock n Roll'



Please go to 'Rock n Roll' and more importantly read the full details


For balance, which I know everyone doesn't like they are predicting PBT of '0' for 2018 whereby previously it was 2.1m (reflecting the companys pledge for profitability in 2018 has been quietly dropped) but that said the price reflected a gloomier scenario and any new contracts will shift this dynamic immediately.

This addressed my concern over further funding may be being required - so happy to hear the below (no further direct/indirect dilution):


'The auditors have qualified the accounts on a material uncertainty over the going concern basis on a technical issue regarding a short-term funding to cover restructuring payments. Two of the group’s largest shareholders have committed to cover this eventuality. Only letters of intent had been issued at the time of the audit sign-off, hence the note of caution. Management’s view is that if the timing of the firm commitment had been sooner, the auditors would not have made this qualification.'


I suppose the thing to remember and I know it is quite obvious but we are now in August, 4 months from 2019. Although profitability may not be achieved this year that was why we sat at 4p for H1 - some people picked up on the change. However time has moved on and for a growth stock moving into profit with huge margins this is the first step of many on the way up.

[tiger60] 17/8/2018 08:58

7digital's official announcement of Triller deal just come through.

[russ505] 17/8/2018 07:54

Also of interest.

20.06.2018

MediaMarktSaturn acquires stake in Russian CE market leader M.video and transfers Russian business to M.VIDEO’S parent company SAFMAR Group
hxxps://www.mediamarktsaturn.com/en/press/press-releases/mediamarktsaturn-acquires-stake-russian-ce-market-leader-mvideo-and-transfers

[michaelmouse] 17/8/2018 07:38

Cheers Russ always appreciate the useful links you provide.

[russ505] 17/8/2018 07:34

Interesting.

July 17, 2018

Senior Back End .NET Developer for 7digital (Kyiv)

[michaelmouse] 16/8/2018 18:31

Yes and given the lengthy and rigorous audit process I think we can safely assume it's accurate.

[william_quinn] 16/8/2018 17:45

I see, didn't think it was on the actual cash-flow statement.

[michaelmouse] 16/8/2018 17:26

William can I politely suggest that you read the year end report published this morning from start to finish.

[michaelmouse] 16/8/2018 17:25

No problems russ505. ATB.

[russ505] 16/8/2018 17:13

michaelmouse. Great summary of today's results, thank you.

Lots to like. Content deals with Amazon,active discussions are ongoing with some of the world's leading retailers.

[william_quinn] 16/8/2018 17:05

'Cash and cash flow
At 31 December 2017, the Group had a cash balance of £6,978k (2016: £838k) and saw overall cash inflows in 2017 of £6,498k (2016: £1,737k cash outflow). This included a cash inflow of £127k from operating activities (2016: £1,362k cash outflow), £4,394k cash outflow on investing activities (2016: £349k outflow), and £10,694k cash inflow on financing activities (2016: Nil)." '

Michaelmouse, help me out please, how did you arrive at the above figures?

I am having trouble seeing them.

Thanks.

[monte1] 16/8/2018 15:13

Oh Lord, here we go again.

Aimho of course.

[michaelmouse] 16/8/2018 15:10

£100m+ kemche medium term. Longer term (5 years+?) depending on uptake, a £1billion+ market cap. isn't out the question. Once they hit an inflection point of profitability and significant cashflow then with recurring revenues and large margins, operational gearing kicks in and revenue increases will largely fall to the bottom line. Imagine adding two/three significant clients over the next two years then cashflow and profits will soar. It's worth remembering that 7digital are last man standing in Europe in this space and barriers to entry are high. It's a quasi-monopoly. Their biggest challenge is ensuring that their target market want their services, and it's looking increasingly like they do.

There are plenty of story stocks generating "sod all" revenues at the moment already on market caps. of £100m+. 7digital is insanely cheap by comparison. That said, I can currently see quite a few nonsensical valuations unwinding as reality bites.

7digital is sensibly valued with the potential for massive upside, it's a far more comfortable position to be in. Watch a company's figures and progress and buy the shares when they look cheap.

Aimho of course.

[kemche] 16/8/2018 13:57

only £100m michael ??

[michaelmouse] 16/8/2018 13:32

Worth a look at Simon Cole's interview today.

Consolidated platform by October will strip out £1.5m of yearly costs.

With rapid (and accelerating) revenue growth and gross margins of 72%+ you don't have to be a genius to imagine how this will affect the bottom line.

Add in another contract with a major retailer for instance, and 7digital will easily be worth £100m+ in the medium term.

As ever Aimho DYOR.

[saul goodman] 16/8/2018 11:54

Indeed, it being highly unlikely to have any material impact on the sp, being what it is.

[pvi1] 16/8/2018 11:53

No legal requirement to RNS it. For your homework you can find out why and write a small report on it. Now go get that spaghetti