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BGO Bango Plc

133.50
0.00 (0.00%)
13 Jun 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Bango Plc LSE:BGO London Ordinary Share GB00B0BRN552 ORD 20P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 133.50 130.00 137.00 133.50 133.50 133.50 50,667 08:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Radiotelephone Communication 46.1M -8.83M -0.1150 -11.61 102.49M
Bango Plc is listed in the Radiotelephone Communication sector of the London Stock Exchange with ticker BGO. The last closing price for Bango was 133.50p. Over the last year, Bango shares have traded in a share price range of 95.60p to 210.00p.

Bango currently has 76,774,700 shares in issue. The market capitalisation of Bango is £102.49 million. Bango has a price to earnings ratio (PE ratio) of -11.61.

Bango Share Discussion Threads

Showing 11176 to 11200 of 11425 messages
Chat Pages: 457  456  455  454  453  452  451  450  449  448  447  446  Older
DateSubjectAuthorDiscuss
09/4/2024
12:04
Write up for interest. Not as in depth as when I chatted with Anil, but hopefully something that is useful. https://martinflitton1.wixsite.com/privatepunter/post/stand-and-deliver-09-04-24
hastings
09/4/2024
12:03
The good part here is that they don't need any cash, either to survive or to pursue their strategy. At circa $50m of revenue and with the integration complete the level of investment/costs and therefore profits are almost a choice at this point ie they can easily turn down the expenses (at the expense of growth) if they needed to.


errrr perhaps but perhaps not - i have seen it posted here that develpment spend this ytear is expected to drop by $4 million compared to last year. Last year they capitalised over $17.5 mill od develkopmnet spend - does that not mean that they still have $13.5 mill of developmnet spend this year that wont be reflected in the profit numbers other than pro rata reduction - for company making $3.5 mil bottom line profit and with debt that is materially high level of "expected spend" - and thats the stuff that they can capitalise. My rough calcs based on lkast years depn/amortisation charge ($9 mill) - suggest the cashflow could be tight - i am not saying cashflow is a problem but i wouldnt say they have much safety net here for unforseen events. Ok they can pimp up cahsflow if needs.

Note the elephant in the room her is the trade and other payables at over $30 mill the total massively exceeds receivables - i suspect they have already been pimping out cashflow anyway. They dont want suppliers getting over twitchy ref providing credit.

I may nolt be as negative as some ref cashflow prsopects but imho i would say they are possibly in marginal cashflow position here ref ability to invest quickly to grow business as they clearly need to do with the planned capital spend.

my calcs i admit are quickly compiled and sketchy - again its noce nice when we get decvent broker notes confirming the expectations as that avoids us having to make up assumptions

rmillaree
09/4/2024
11:02
6gr, although H1 numbers will help a bit we won't get a clear picture until 2025 in the financials
amt
09/4/2024
10:42
I think we'll just have to wait for the H1 results to see a clearer picture on costs, though they should decline from lower Capex investment and from the cost-savings.

I have no doubt that revenues will just keep climbing on both DCB and DVM. DCB is growing at 5% organically and DVM grew at 37% organically alone and new customers will add to that as they come on stream.

It's just annoying to be sat here nervously looking at the share price, down about 40% from my average entry. The good part here is that they don't need any cash, either to survive or to pursue their strategy. At circa $50m of revenue and with the integration complete the level of investment/costs and therefore profits are almost a choice at this point ie they can easily turn down the expenses (at the expense of growth) if they needed to.

The fact that the board own 11% of the company means they are hopefully unlikely to sell cheaply, as they genuinely believe in a £1bn valuation in time (as do I).

6gr
09/4/2024
10:37
It's not easy forcasting and one blunder, although a bad one, i think over the years their forecasts have been quite good though. Not many misses over the years from memory
amt
09/4/2024
10:32
Its not that i donmt belive the cost savings - i think its up to the company to confirm that the costs savings exist and that the 2025 numbers will be that much better - in that regard broker forecasts or clear talk is all i will look at. Its completely bog standard for companies to announce huge costs savings for the end results in 2 years time to not be materialy different than before those cost savings - its almost the norm.

ref not trusting them - well hopefully sooner rather than later we will get broker notes for next year. My deep skepticism at present doesnt mean i dont see the potential - i 100% agree that at face value alot of the reasons for the delayed "profit point" make sense - its just that they have clearly got their prior forecasts terribly wrong - so i am not minded to give them the benfit of the doubt without some firm tangible forecasts to go off - is it too much to expect to get well calculated broker estimates for next year soon ? hopefully not.

rmillaree
09/4/2024
10:18
rmillaree I think you have completely missed the point about the cost savings. In the old days they could have made a 40m provision against restructuring costs and then you would see the profits and savings. Rules are more stringent now so they can tell us what the savings are but you won't see them in the numbers until the restructuring is complete at the end of 2024.
If you don't believe the cost saving they are quoting then there isn't much point investing in a company where numbers can't be trusted at all.

amt
09/4/2024
10:08
plus I did make clear that the costs from the acquisition were about 10m higher than planned plus taking a year longer to get the benefit.


thats a fair point of its true - if its true i am not sure why the company is highlighting this fc at front and centre that there will be 10 mill drpooing ouit next year compared to this - i have seen little evidence from company that they expect tis to be the case so i am not not so convinced - just like the prior $23 mill of "cost
savings" for whatever reason facts are costs keep gilling in the extra incoem wahtever happens.

What we really ned is broker note or something from company saying that the profits will come back - i supect after the last debacle the brokers probabably rightly want higher level of proof before agreeing to put there name to something. does anyone know when we can expect to get brokjer forecasts for next year. It is extremely common where companies are less than clear and transparent that extra costs turn up to fill in the blanks unles they have clealry indicated otherwise imho. If the company aint slapping us in the face saying they will be mkaing hay next year - i for one am preuming thats because there is material element of uncerrtaintyu that they will do.

I agree this will become clear in 2025 - but how dificult a buisness model do they have predicting costs and sales increases right now - they should be in the sweet spot right now that was the whole point that once they reach the $50 turnover level the profits would start rolling in (before then really)

rmillaree
09/4/2024
09:46
rmillaree you are missing my point. The costs you are referring to are the investments into the DVM development plus I did make clear that the costs from the acquisition were about 10m higher than planned plus taking a year longer to get the benefit. You should look at 2025 to see the benefits. It proves my point that investors expect quick returns. I think my point will become clear in 2025 that the Docommo acquisition was worth over 100m in market cap and has not been a really bad investment as you infer and not generating the cash expected.
Anyway when asked about the share price reaction I think Paul was quite sanguine about it. For me it was great news as I could double my investment at 100p which I wouldn't have been able to afford at 2 quid.
No dilution so looking forward to the future.
My point remains though that the UK stock market is hopeless at valuing companies with longterm potential. In the US it would have been a very different story.

amt
09/4/2024
09:06
Price closed above 117p yesterday, outside of the 10 week trading range it's been stuck in. Now it's broken out of that range, the share price should keep climbing from here imo, especially as technical traders will join fuelling the recovery. Some will be eyeing the gap on the chart.
parob
09/4/2024
09:05
In effect what has happened is they announce an acquisition worth 16m per annum of revenue at 90% margin longterm with virtually no overhead required longterm.

imho this is nonsense - facts are they only expect to report £3 mill profits year end 31/12/2024 and thats with the booked cost savings in place - and they are expecting chunky capitalisation costs this year that will probably outweigh depreciation/amortisation charge. Clearly other costs of some nature are eating into the income - do you not think if it was as easy as merging and booked savings and they were making great profits now that they would not simply be delivering. Clearly they thought previously they could deliver the profits at $15 mill plus- facts are they have foujnd over $10 mill of extra costs this year that have been poorly communicated to the market.

Hopefully the building blocks are in place but when they expect $54 mill of revenues and $51 mill of that goes out as expenses its fairly clear to see the incoem for whatever reason is not all profit. I am never knocking the potential here but huge difference between saying you will deliver and then dont and delivering - the market obviously doesnt fully believe teh story till they deliver.


"It's very difficult for Companies to make longterm strategies in the UK because of a very poor investment environment. Investors want instant results."


How long has bango been trading and the issues here are them promising gold and then yanking it away at the last minute - they have had plenty of time to get up to speed and the issues here are ALL 10% imho to do with management over promising and under delivering - none of thats to say it wont come good but in some resepcts the $200 mil valuation was theer because theye the mangement said they would deliver real profits and they havent as of yet.

rmillaree
09/4/2024
08:54
Sorry to hear that amt. I feel like you might be bringing bad juju at this point 😆
If there's a phat premium offer I wouldn't mind though.

vespasianthesubguest
09/4/2024
07:11
Yet another of my investments has been taken over, this time Gresham Computing.
It's not a good sign for the UK stock market.

amt
09/4/2024
07:00
Lentjes You can ask them if it's of interest. They are open to questions.
amt
09/4/2024
06:54
Bango is a classic case of the share price not being valued correctly on a longterm basis. In effect what has happened is they announce an acquisition worth 16m per annum of revenue at 90% margin longterm with virtually no overhead required longterm.
In the first couple of years it will cost 35m to restructure and GM will be about 80% because of the platform they are using.
Therefore expect bad numbers for a couple of years.
initially the share price goes up a bit but when the bad numbers come through are worse by about 10m than expected the share price halves and knocks 100m usd of the market cap.
Now nearly two years after the acquisition the turnover and GM from the acquisition are confirmed by the numbers and the cost savings are confirmed but it's too early to see it in the numbers the market starts to believe in what the management announced two years ago and the share price starts to recover.
It's very difficult for Companies to make longterm strategies in the UK because of a very poor investment environment. Investors want instant results.
I think the acquisition should have added 100m plus to the market cap originally and Paul hinted at that yesterday. The payments business alone is generating 32m usd of revenue at 90 to 95% margin from 2025 and very little cost required to support it. Its almost like a royalty of 30m usd growing at 5% per annum. That alone is worth a lot more than the existing market cap in my opinion. DVM is in for free.

amt
09/4/2024
06:40
I don't know but maybe they will want to hold on for the share price to recover. I don't suppose it matters although an unfriendly takeover is possible by another party if NHN want out. Ultimately it doesn't matter in the longrun.
amt
08/4/2024
22:08
Maybe a question that should have been asked is now NewDeep has been wound down and each party walks away with the right to use the technology why would NHN need or want to stay as a major share holder in Bango
lentjes
08/4/2024
17:00
Don't forget that $4.6m of the $8m loss was from NewDeep and it's closure. This obviously won't repeat in '24.
6gr
08/4/2024
16:50
11.6m swing easily achievable by the scenario I outlined.
amt
08/4/2024
16:29
My overview for '24: Costs down, revenues up = much increased profits and free cashflows

well compared to loss of $8 mill for year just finished yes figures will NEED to be meaningfully better (obviously) - they need 11.6 mill postive swing just to get to £3.6 mill profit forecast that i think brokers currently have. I dont know if my £3.6 number estimate excludes and line items or not though.

rmillaree
08/4/2024
16:06
Yes the 21m costs synergies will make a big difference in 2024 and all of it in 2025
amt
08/4/2024
15:53
The slides from the 'Investor Meets Company' presentation this morning are now online.

hxxps://www.investormeetcompany.com/investor/meeting/fy23-results-presentation/presentation

Slide 14 shows a reduction in Capex for '24 vs '23 by $4m.

Slide 17 summarises as:


Strong revenue growth.

Payment business continues to grow
DVM business accelerating
ARR provides predictable revenue stream

Managing costs.

R&D CAPEX decreases in 2024
$21M cost synergies from the acquisitions reached
Cost of payments business to further reduce in 2024 and beyond

My overview for '24: Costs down, revenues up = much increased profits and free cashflows

6gr
08/4/2024
15:31
IC you are missing the point that admin costs will be much lower, GP higher and 7 or 8m on turnover at 90% margin.
So let's say admin costs 8m less (11m are other costs that can be eliminated in 2025) , GP 4% higher (90%) 2m, plus 7m extra profit from sales equals 17m higher than 2023.
That's 23m ebitda. So 16.8m is in easy reach.
With margins recovering on 2025 and all acquisition costs completed then 30m ebitda would be easily achievable

amt
08/4/2024
15:25
large buy at 120p
tsmith2
08/4/2024
14:38
sort of...
vespasianthesubguest
Chat Pages: 457  456  455  454  453  452  451  450  449  448  447  446  Older

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