Cloudbuy Share Discussion Threads

[freddie01] 10/7/2015 07:39

As at 31 March 2015, the Group had a 62.6% interest in Science Warehouse with a fair value of £12.7million. The Group invested £3.6million during the period to increase its holding and recognised a fair value uplift of £3.5million.

Founded in 2000 and a Leeds University spinout, Science Warehouse delivers a cloud-based procurement, catalogue and spend analysis platform with a highly intuitive user interface, giving its customers control of the purchasing cycle from requisition to payment, helping deliver costs savings and manage spend.

Science Warehouse has customers across its target markets, which include higher education and public sector research (the origins of the platform in its early development), the NHS (with the backdrop of a continued push to reduce purchase and administration costs) and the construction industry. In the last year alone, in excess of £500million of spend was processed through its platform. The market in which it operates is an attractive market to be in, with enormous potential for sophisticated spend management and procurement solutions, as well as the potential to offer supplier participants access to an increasing range of buyers, as the customer base expands further.

During the past year Science Warehouse has won seven new contracts including engagement with Queen's University Belfast, York St John University, Kettering NHS Trust, Princess Alexandra NHS Trust and following the opening of its Australian office to focus on the higher education market, it has secured a contract with the Charles Perkin Centre (part of the University of Sydney). The Group's recent substantial investment into the business is therefore to enable Science Warehouse to capitalise on a clear market opportunity to scale, both in the UK by seeking customers in new vertical markets and internationally, firstly in Australia where the initial focus is on its current customer sectors.

Our investment is also to fund the further development of the management team alongside the founder Dr David Hames, with the appointment of Philip Padfield who has recently joined as CEO, to drive revenue growth. Philip has a successful sales background gained through numerous leadership and CEO positions, including running businesses in the UK and the US.

This new senior appointment, as well as the recent appointment of a sales director, reflects Mercia's proactive approach in supporting its investments with more than just capital. Our capital injection is also being used to develop and enhance the technology platform, bringing together individual customer modules that have evolved over time into one integrated architecture and application. This will provide increased functionality and a platform that can be scaled to meet Science Warehouse's customer growth targets.


hxxp://www.merciatechnologies.com/portfolio/science-warehouse/

[jxman] 09/7/2015 13:42

I'm getting ready to pile in here. Waiting for the nod!

[lefrene] 09/7/2015 12:16

The business needs to come good, or at least show clear signs that long term income momentum is building up from the string of deals done this past year.

I don't doubt that EFH have found a means of shorting without breaking the terms of the agreement, the naivety of the Duncan's is jaw dropping, the share holders will have this albatross around their necks until the deal expires or the trade improves sufficiently to get share price to 40p and above. The next up date needs to be good or else they will have the choice of losing the shares or digging deep into their pockets. Losing the shares would probably be better for the share holders as one suspects that EFH and friends have ways of lifting the price once they have a load of cheap shares on their hands.

[big7ime] 09/7/2015 10:50

If it goes below that let's see if we get another RNS
EFH paid the Duncans 23.7p when the price was 38 giving EfH great opp to make money on the deal shorting down to that level or much higher, the margin is so good. As I have said before when they entered this The terms are that the shrs loaned against cannot be sold or leant out for shorting but as far as I know doesn't preclude them from separate shorting activity which has no doubt already happened.
They've already made their money, they have the shares that the Duncan's can repurchase at 27.16p but when the price is 19 are the Duncans more likely to walk away? Either way EFH has won.
Some argue that if they walk away the shrs will rise, EFH would be free to sell them causing more downward pressure on the share price no?

[lefrene] 09/7/2015 09:23

That 19.5p gets closer, perhaps a bit of good news is required?

[troutisout] 08/7/2015 22:07

Rock Star,

I asked because you defend him so much....'badly advised' he is meant to be the businessman leading CloudBUY forward. Sorry, the loan was with him, he should have done the DD before signing up. He knew it was a way of screwing money out of the Company without losing his holding or so he thought. However if he effectively sells shares at a figure, then the market will see that as a benchmark and the whole thing went downhill.

I cannot see EFH having sold all the stock, let's face it, we were all told this wasn't possible when the deal was first announced.

They may have entered a short position (again told not possible), but if they have to return the shares they aren't going to be stupid enough to sell them to buy them back two years later. They aren't the naïve ones they have been doing this for years.

The margin call at 19.5p is very important as RD has to put up more margin or walk away, reneging on the deal and losing his right to the shares. That is what EFH want and the market knows that and will keep pulling the price back to these levels.

30p is a red herring.

If I was EFH I would be trading this and moving it down and up and eventually making much more than the initial loan deal.

I am not EFH but still trade this and so far have taken over 80 ticks (80p per share) in profits. The share price will re-rate at one time and if we lost EFH I would consider building a long term position.

At the moment it is a traders share as the magnet of 19.5p pulls the share price down when the newsflow is quiet.

Trout.

[rock star] 08/7/2015 21:36

Trout,
Certainly not a Duncan!!! Look back.V critical over the loan although badly advised.

I have asked via third parties. He can't break the loan.ie. Pay it back- in the terms. What is done is done. If price goes below the trigger point of 19.5 days for x many days then both parties walk away. EFH have apparently already covered themselves by selling the stock- the only way to check this is via some share register service.

So in terms of the EFH loan,assuming they have sold all their 2m+ stock which I believe to be true then it is an irrelevance. It becomes a positive above 30p as they have to close their potential short position.


RS

[beeezzz] 08/7/2015 21:20

RS...Thanks mate for the update...much appreciated.

Could EFH short the stock to ensure it stays below the 30p trigger.?

[troutisout] 08/7/2015 21:06

Rock Star, are you a Duncan?

Firstly the EFH is the most important thing here and that is why every time the share price drops back close to the margin call area, a rash of RNSs are released to pump the price up.

If RD took the bullet and wrote off his shares then the share price would immediately recover and these RNSs might actually have a decent effect on the share price
He might even be better off as his remaining holding would re-rate.

While the margin call remains it will always be a target, the market will want to see something from it.

RD was foolish/naïve with the EFH deal, it certainly was an underhand way to treat shareholders and they have suffered, if he wants to do the honourable thing, he needs to get rid of the EFH millstone around CBUY's neck.

[rock star] 08/7/2015 19:40

Beezeee,

Yes the Indian CIITRADE.IN platform went live in April. The HK platform I believe went live last month. The HK one is the really interesting one as tomboy says it is replacing an existing directory and looks to be used by 3000 Government employees in the HKSAR and is backed by a global bank.

The biggest negative over last 6 months has been the NSW Servicefirst contract that was meant to go live initially with the treasury dept. Unfortunately there was an industrial dispute that delayed things due to a lot of jobs being moved overseas as part of an overall cost reduction programme. Indications are that things have been resolved in the last few weeks.



On the flip side a platform with Ohio Schools was implemented in early April having only been announced days before. Also several UAE contracts have been signed.

I think generally they appear to have made good progress over the last 6 months although it will take time for some platforms(mainly the non Government buying platforms) to build up traction.

EFH-my understanding is they sold all their stock and if the price goes above 30p they will probably have to buy the shares back but dyor etc etc.

If all goes to plan in next couple of years I think they might quote in US or HK/Singapore as tech stocks get much higher(10x+) ratings but first they need to focus on the execution.

They have definitely changed their market PR strategy and that is probably no bad thing.

[lefrene] 08/7/2015 15:30

Yes ramas, the episode won't be forgotten until this thing gets into some sort of decent profit, it's just another AiM story so far that's long on talk but despite good efforts is yet to display any serious earning capacity. Some news that the India market venture is gaining traction would be very helpful.

[tomboyb] 08/7/2015 15:27

Afternoon -

Should be two bits of news this month - One on the Singapore ASME emarketplace and teh HK emarketplace replacing an existing catalogue - That is with a Major F1

So there is 3 weeks till month end -

hxxp://www.thesmartceo.in/special-features/cash-flow-visibility-index-study-by-visa.html

Cash flow visibility index study by visa

Whether a corporation is buying or supplying, digitization of payments becomes the critical step in ensuring efficiency, accuracy in payment and establishing reliable data on cash situation. This is why Visa has a significant focus on digitization of B2B payments. In collaboration with established global technology solutions providers such as cloudBuy, Kofax, Invapay and Spendvision (which is now known as Freedom), Visa works with financial institutions to give businesses a comprehensive and effective approach in managing their financial processes and addresses the challenges of visibility and predictability.

[ramas] 08/7/2015 15:21

The EFH issue many would like to forget but is so so important , it's an insight to the mind of the entrepreneur and what really motivates them and might ultimately lead to bad business decisions. You need a vision and will sacrifice all to get there ... Not truss up a block sale via EFH to spruce up your pad before the jams been delivered to the common oik shareholder

[beeezzz] 08/7/2015 15:19

Still sinking another AIM stock conning it's investors when will it end, AIM market is going to fail without doubt.

[beeezzz] 08/7/2015 12:21

RS....Have you any news on the India project...has that gone live..sorry if so, not keeping probably, lost me enthusiasm after the buy a bigger house fiasco..

[nashwan123] 08/7/2015 09:58

With price drop is Ron having to pay up re his loan arrangement?

[lefrene] 08/7/2015 08:30

Silence isn't working for the share price

[yump] 06/7/2015 11:29

Yiwu Municipal Government

What a long, long way from % of transactions gravy train visualised, based on the UK government taking up the marketplace.

[oiht] 06/7/2015 11:02

Thanks for those links RS. It's all about gaining traction and being the default supplier of choice in my book. Only time will tell. GLA

[rock star] 03/7/2015 20:36

This is a good presentation for the Care platform:



And this is the platform:

[rock star] 03/7/2015 19:58

This has been off people's radar for a while now. Some positive news and this will move very quickly.

The wildcard remains the NHS. I think it is 50/50 that they will sign in next year now the Tories are back in. If they do get it then we know it could be £40m+ profit pa. in 2/3 years time.

[lefrene] 03/7/2015 11:23

Only £1 2bluelynn! Hasn't had much effect so far.

[2bluelynn] 03/7/2015 10:44

Can any one tell me what level 2 is looking like on this . Good article on ADVFN pod cast number 237 Justin Waite share pickers (target price £1 ) !! Thanks in advance