BNN Technology Share Discussion Threads

[genises] 27/4/2017 09:20

JakNife
You do talk the talk.filter back on
The money was raised due to the opportunity which Arose.
No doubt they had approval from the Chinese government.
The listing on the USA market would had brought in extra funds in q3
Bang goes your theory.
Onwards and upwards and take care not to burn yourself over a cup of tea when the next RNSEs come out.

[perfect choice] 27/4/2017 09:18

Not deliberately missing the point, just don't think it is relevant to the situation now as it never happened. If you read the last paragraph of the going concern statement, even without the placing the Directors have been allowed to state "has sufficient cash resources such that there is no risk of a liquidity issue within the next 12 months". Anybody who have worked in finance knows the Directors just cannot "casually" say that without sign-off and they are directly liable.

It would have been a tight ending in terms of available cash I would grant that, but rules are rules. But all this is academic anyway as they did raise cash and have £45M as of now plus incremental revenues across 2017 (so diminishing burn down to zero), so a route to cash flow breakeven and then generation already in place. Feeling I'm have a non discussion here, can we get back to the reality of what is happening in 2017!

[perfect choice] 27/4/2017 08:52

Its seems our distractors are now trying to invent scenarios on what has not happened to try and raise concerns, sheer desperation then.

If you ever look at accounts and their sign-off, it is always useful to look at the forward looking going concern statement which I have copied below. Interesting to note the BoD stated they have no issues for next 12 months even when the "placing, in April 2017, were not taken into consideration when conducting the going concern review" to quote.

£45M cash as of this month with progressive diminishing burn as GTV increases with subsequent incremental commission revenues plus new revenue sources of course (like the new petrol card top-up business), that is the only point of interest right now.

I predict there will be a further cash raising placing before BNN become cash generative most likely late this year, but timescales are earlier than has been suggested. The next placing will be as part of the Nasdaq listing in Q3 2017 to meet the need of IIs hungry for BNN shares and so enabling BNN to retain plenty of flexibility, before cash generation becomes the norm and they can self fund further expansion or more new initiatives.

Going concern basis
In determining the appropriate basis of preparation of the financial
statements, the Directors are required to consider whether the
Group can continue in operational existence for the foreseeable
future; that is for at least 12 months from the date of signing of the
financial statements.
As described in the Strategic Report, the Group has undergone a
year of transition, away from reliance on the Chinese lottery. We
successfully raised £51.2 million in 2016 to build out our technology
platform, enter into key relationships and develop and establish our
three business areas.
We have proved our new payments model in September 2016 with
the first revenues coming from mobile top-ups.
Revenue and profitability growth in 2017 is dependent on a number
of new commercial developments, including:
• The launch of the petrol card top-up business with strategic
partners.
• The commencement of the B2C business across the Xinhua app.
• The launch of the unique content and generating advertising
revenues.
The Directors have reviewed trading and cash flow forecasts,
subjecting the assumptions underpinning the forecasts to extreme
stress scenarios. The cash proceeds of the subsequent placing, in
April 2017, were not taken into consideration when conducting the
going concern review, neither were the proceeds included within the
forecasted assumptions.
As a result of the going concern review, the Group has the
reasonable expectation of profitable trading contributing to cash
flow generation, and even under an extreme stress scenario, has
sufficient cash resources such that there is no risk of a liquidity issue
within the next 12 months. In addition, there are no factors of which
the management are aware that could lead to the Group having to
cease trading.

[1meg] 27/4/2017 08:12

single trade! News???

[and11] 27/4/2017 08:05

PJ1 l did that the other night! Fact some of it, much of it guess work not reality sorry to say... move on shorters

[birotop] 27/4/2017 07:54

Hard luck....

[and11] 27/4/2017 07:54

Your running out of time shorters! I would get out while you can...

[pj 1] 27/4/2017 07:53

I find it very strange that so many here attack Jaknife personally rather than disprove what he says with fact, figures and any comparators, and/ or knowledge of AIM Regulation

[and11] 27/4/2017 07:51

Good to see the shorter's desperately looking for something to grasp hold off!!! Lol.. onwards & upwards...strong & long...more news on its way very soon...

[birotop] 27/4/2017 07:48

Aye old blunt knife & the crew have a busy day ahead here & Eden....

[vegpatch] 27/4/2017 07:47

Agree with Jak
No way an auditor signs it off as a going concern without the raise

[charlesdarcy] 27/4/2017 07:43

Jaknife / Pi1/2

Your boss must be paying you over time .
What a sad existence .

[and11] 26/4/2017 23:55

Emergency placing! You are laughable making comments like that jaknife...we went through this last night.. get s grip or take your short elsewhere...

[pj 1] 26/4/2017 22:58

topaz- How many weeks roughly before you plan to exit and run away with a profit? 2?

[topazfrenzy] 26/4/2017 22:52

I was negative here until the news from last Friday onwards, clear to read IMO, ignore the doom mongers, this company has legs now and the share price is going to multiply x10 in a few years, get in and stay is my advice! GL

[charlesdarcy] 26/4/2017 10:09

Not good for anyone , low volume ...
But early days and brokers statement might be soon

MM will search for some trade ...

Would of preferred marking it up 3% than down
I noticed the new investor has a huge stake in the car business in China
So hopefully lots of links here for BNN

[tsmith2] 26/4/2017 09:15

vol drying up can't be good for shorters

[perfect choice] 26/4/2017 08:57

Yes what a load of tosh last night, time people don't have a life.

On financials, basic error being made it seems is relating old digital revenues (ODR) in 2015 (and H1 2016) with new digital revenues(NDR)in H2 2016 (and Q1 2017 under declared GTVs). ODRs had higher commission rate, NDR have a lower commission rate but addressed across a much larger GTV volume which will dwarf historical ODRs in due course. NDRs only commenced from October 2016 onwards and that is where the growth starts for both GTV and revenues. If some people want to look backwards then fine, that just means they cannot see the tidal wave of GTV and revenue growth heading straight at them if they looked forward instead!

The easiest way to address this is deduct the H1 216 interim results GTV and revenues so you get a better picture of the NDRs and revenues. H1 total revenues were £537K making H2 2016 £1527M (spot the growth!). Also £269.5M of the total £285M GTV for 23016 is in Q4 2016 only, reflecting the launch of the new B2B service. So you get a clearer picture of the NDR and new GTV growth. NDR only started in October 2016 (so Q4 onwards, there is some legacy revenues continuing which is good money) so anything before that is ODR and its associated GTV. Q3 2016 revenues appear to be negligible which is consistent with H1 stated revenues.

The correct statement that should have been made is that the 2015 ODR revenues and commission rates were higher than the 2016 equivalent, have no issue with that. But it reflects comparing a now ceased services with the new (NDR) B2B mobile top-up business. But what is not the case for NDR is that GTVs are rising and revenues falling. Figures in annual report are clear to state growth of both since end of H1 2016.

So in summary, they are increasing steadily from NDR launch in October 2016 and will reach a level for net cash generation around Q4 2017, in line with AR statement. Anything up to end H1 2016 is just history and what matters is what happens in 2017 onwards. The interesting analysis of available date I find is that if BNN do absolutely nothing with no growth at all in NDRs, they will still make more revenue in 2017 than in the whole of 2015. Reality is not that of course and all the new app add-ons a, further launches and advertising revenues will boost revenues much higher than even today. Remember the £413.4M Q1 2017 GTV is only from mobile top-ups and lowest commission rate, BNN have a substantial growth pattern for revenues going forward and so makes 2017 an exciting period for BNN going forward.

[genises] 26/4/2017 08:09

Lucien no doubt paid posters.lol
don't bother replying the
filter button has been switched on for Jaknife.
peace.

[birotop] 26/4/2017 07:15

Blunt knife still posting at 23:46 - that tells you all. Not sure who will be doing the day shift or the night shift today, but you can rest assured somebody will, what a strange existence....

[cheshire pete] 26/4/2017 00:59

JakNife said he's not short but why else would you produce all those posts full of negativity otherwise. Very strange.