7digital Share Discussion Threads

[michaelmouse] 07/1/2019 08:44

Over the next week or two it's become a punter's stock. Stating the totally bleedin' obvious they need to clear that tax bill pronto, and I don't know how they've let that situation arise? It was a shocker to read that on Friday.

Of course if they do settle soon then the immediate danger disappears and they then need to deal with uncertainty over the Juke contract. That is important but less of an issue.

After consolidation their admin costs should now fall to around £12.5m per annum. The company makes 70% gross margins. Some simple maths will tell you that they'll need around £18m revenue per annum to break even. This is achievable with or without the Juke contract imo.

They may need additional funding, we'll see. The company is innovative, British and deserves backing imo, particularly given some of the trash that is listed on AIM with next to zero revenues and multi-million dollar market caps.

Investors will need to keep fingers and toes crossed short term.

[saul goodman] 07/1/2019 08:34

Are you suggesting that the avatar may have a hidden agenda?

[monte1] 07/1/2019 08:32

It strikes me that the avatar ‘shaken not stirred’ might be better served dealing with the issue rather than posting about it on a freebb.

[saul goodman] 07/1/2019 08:27

Shaken not Stirred
Member since: 03 Jan 2019

Posts 2

[monte1] 07/1/2019 08:09

Excellent thanks supercity.

Apparently it is all just a storm in a teacup.

Thank goodness for that. We can all relax.

[supercity] 07/1/2019 08:07

Seen these type of warnings before - the tax bill gets paid, the share recovers back to the price it was before which in this case is nearly 2p

[dave4545] 07/1/2019 08:04

TBH monte1 was warning about this stock from the 7-8p days.

[monte1] 07/1/2019 08:03

I can have whatever agenda you want me to have on a freebb.

[shaken not stirred] 07/1/2019 08:01

Enlighten us Monte - where have you heard this before? Or do you, perhaps, have a hidden agenda here?

[monte1] 07/1/2019 07:57

Ah, the olde AIM R&D Tax credit non-credit - now where have I heard that before?

[shaken not stirred] 07/1/2019 07:40

With regards to the tax owed it is my understanding that 7dig were trying to offset this with a R&D credit due to them but HMRC refused.The irony is that there is a chance this credit is greater than the amount owed as detailed in the RNS.

[honestmarty] 06/1/2019 22:46

Zen12, I think they will pay.

But lipstick or not 7dig is still a pig.

[zen12] 06/1/2019 22:19

Whatever the reason which is speculative, the important thing now is that they’ve come out and confirmed they’re paying it. Which is the main thing.

[saul goodman] 06/1/2019 22:13

Quite. Plus the fact that they knowingly hadn’t paid the bills they knew were outstanding.

I confess I’ve not checked the wage bill to work out how many months are outstanding, but it doesn’t really matter. Any POS that is robbing Peter to pay Paul (themselves, most likely) is on a very shorty and slippery slope to oblivion.

Pathetically, I suspect some clown probably didn’t even think through the additional tax that would be payable on the notice of the redundancies either.

[honestmarty] 06/1/2019 21:51

It says they became aware of the Gazette publication on Friday.

There must have been prior discussions, and indeed a warning about the petition.

[zen12] 06/1/2019 21:34

It’s in black & white in RNS! So are you saying we should believe you over tho bod lol

[honestmarty] 06/1/2019 21:00

They raised 2.5 million in October. I think they are good for it.

Suspect it was a dispute over the tax bill, and HMRC are holding their feet to the fire.

[saul goodman] 06/1/2019 20:46

Aye, just slipped their mind, I’m sure.

[honestmarty] 06/1/2019 20:34

Zen12, only informed on Friday???

Come on.

[zen12] 06/1/2019 20:22

Don’t think this is high risk at all, they were only informed of this tax issue on Fri and they reported to market straightaway (they appear to have shoehorned in this para of the update last min). They have also told us their paying it, so don’t understand this scaremongering.

[barnetpeter] 06/1/2019 19:57

The point is....how did the debt arise? Never made any net profit to attract corporation tax so must be employee tax or vat etc.

7 dig might well bounce next week and those buying at the bottom could easily nick 40 per cent on the “greater fool” principle. Even rubbish will bounce for a while. The danger is a sudden suspension such as the nomad giving up etc. All desperate punting but then I do it all the time...trick is to get out and not be too greedy but that’s just my view. This is too risky even for me.

[honestmarty] 06/1/2019 19:37

The company will issue a detailed statement of the expected out-turn for 2018 once accounting issues related to the restructuring and revenue recognition under IFRS 15 have been resolved.

Are they arguing with HMRC over tax liability, and are HMRC strong arming this bunch of pampered luvvies?