Stock picker, MXC don't have any gains elsewhere as far as I know. They only hold Tialis which hasn't budged all year. |
I just came back to check the price oh dear what is going on here are MXC going to right these losses off against gains made elsewhere just seems a complete sh@&t show now. I had so much hopes here. Has anyone noticed if there’s been substantial sells over the last few weeks? It seems the inherited debt has strangled the hell out of the company!! |
:)Who doesn't like losing half your cash immediately after a purchase!Seems a flurry of buyers this last few days after last week's drop. Not convinced as to why. |
66.67% bid-offer spread being quoted on advfn right now. sure, that'll help. |
stockpicker, there is a hackneyed old financial proverb "Revenue is vanity, profit is sanity but cash is king". The debt here is increasing, as are interest costs and trading losses, so to state "if the debt wasn't there would everyone now be singing the BOD praises" is just utterly meaningless.
The reality is that Halpin trebled the sales but continued to make losses so the debt increased. This debt can never be paid off until they start to make profits, unless they can make a placing to eithere dilute or eliminate it. Their last placing was at 1p around 3 years ago to raise a couple of million. Do you really think that they could get another placing away today at the current share price. Companies exist to make profit and if they can't service debt from their profits then they will eventually become insolvent. |
Thank you Markwell for your well written message. It still beggars the same question if the debt wasn’t there, would everyone now be singing BOD praises? The company has grown from strength to strength. Just not enough to pay the debt back yet it seems. |
 stockpicker, you posted "No wonder Mark left". He was the CEO for 4 years since March 2020 so you appear to exonerate him from any responsibility for the company's performance over that period of time? You seem to place the blame on Duckworth but he was, and still is, an NXD Chairman. Halpin was in charge, an NXD does not run any company.
The RNS stated "Mark Halpin has stepped down from the Board and his position as Chief Executive Officer with immediate effect." I've not heard of any CEO resigning with immediate effect unless they are pushed out. People who resign usually either announce their departure to another company or state that they will remain in position until they can handover to their replacement when appointed. They rarely resign with immediate effect unless they have some serious medical condition or personal problem.
MXC are hardly "fat cats to demand more money". Their loans are now at significant risk of default and in those circumstances it is not unusual for loan providers to seek a higher rate of interest to try and mitigate loss should the company become insolvent. Even old Beeksy has recognised that. You made your own investment decision here and win or lose it is your own responsibility. As recently as April you were posting "I can't wait for this to get to 4/5p first then 10p and beyond." despite frequent warnings from both Zico and myself.
I'm not here to gloat, I sympathise with anyone making losses which we have all experienced from time to time. However, you had your head in the sand with your constant bullish posts ignoring the reality that was evident here. The best thing that you can get out of this experience is to learn the lesson from this bad outcome and take a much more objective financial view of any other investments you may make in the future. |
I've refrained from posting because I'm also p*ssed off and feel all I can add is negativity which helps nobody.
I mentioned elsewhere that I've written my investment off and it hurt but I'm over it now.
It's like a slow-motion car crash.
As Beeks has alluded to there's a good business in there with the right leadership. |
Atm it just feels like we’ve been completely hoodwinked no matter what positive drivel Duckworse comes out with :( |
While Duckworse is trying to figure out how to build shareholder value the company continues to drop the share price and at this rate will soon be 0p per share. I honestly thought the inherited debt back in 2019 around £3.9mill would stay fixed and repaid as the company is restructured to get well get fit boll@*#s. That was all bullshi*#t as they’ve mounted interest only for MXC to shoot them selves in the foot. No wonder Mark left. How demoralising is that reshaping an d creating profit only for some invested fat cats to demand more money for nothing and this threaten the existence of the company. I’ve invested heavy here but am struggling to see how this can really turnaround. Yours sincerely a very pis*#%d off investor!!! |
Sorry Cordwainer, meant to say thanks for your balanced input over the past year or so. You are likely correct if nothing changes. |
An opportunity to expand the existing relationships with local government now there's likely to be extra spending power.12 months max and they need to be looking at sorting the financing, so could potentially be resolved there. I currently only see a d4e style situation which wouldn't be great for current holders down here, but could be the making of the company. MXC between a rock and a hard place really, but that should give shareholders some comfort, despite being a bum deal. Quite a lot can happen in the meantime.Only holding a million or so at 0.26p, not one on my current watchlist for adding. |
Rough calcs in my head - Assuming all sales growth continues to come from the lower margin Value Added Resale segment, I estimate that overall sales must at least triple within 12 to 18 months for this company to be able to keep paying salaries. But without knowing the actual margins on each segment there's a wide margin of error on that. While the increase in VAR sales did accelerate from one half year to the next by a factor/multiple of almost 4.7, seems like a big ask to repeat and compound that. But will Managed IT Services segment stay flat ? |
I could pick a 1000 holes in his reasoning, but I won't. |
interesting piece on cloud costs |
Results
Revenue increased by 11% to £14.3 million (H1 2023: £12.9 million). Whilst 62% of revenues were generated from Managed Services (H1 2023: 70%), we continue to see customers investing in new hardware and technology by purchasing value-added resales services.
We are seeing an increasing number of these value-added resale sales being transacted via our e-commerce platform (morecoco.co.uk), which has seen revenue growth of 125% during this half-year to £3.6 million (H1 2023: £1.6 million). Whilst the gross margin on e-commerce sales is lower, this is offset by a lower cost of operational delivery.
As a result, gross profit remained stable in this half year at £4.3 million (H1 2023: £4.3 million), representing a gross margin of 30% of revenue (H1 2023: 34%). This reduction reflects the change in the mix of business described above and the increased ratio of third-party suppliers (such as Microsoft) in our solutions.
The internal focus on achieving cost savings and increasing efficiencies within our operations saw administrative expenses reduce by 4% to £4.9 million in the period (H1 2023 £5.1 million), with Trading Group EBITDA1, increasing to £1.2 million for the half-year (H1 2023: £0.9 million).
In order to fix prices in some of our data centre locations, we entered into a number of new term lease agreements with key providers such as Equinix, Pulsant and Virtus. This allowed us to negotiate new terms and freeze prices for a period instead of enduring variable prices as a result of power price fluctuations. These new longer-term leases are reflected in an increase in the Depreciation of IFRS16 data centre leases to £0.6 million in this half year period (H1 2023: £0.4 million).
After accounting for these depreciation costs, together with plc costs of £0.5 million (H1 2023: £0.4 million), exceptional items and share-based payments of £0.2 million (H1 2023: £0.1 million), amortisation and other depreciation of £0.6 million (H1 2023: £0.7 million) and accrued net interest costs of £0.5 million (H1 2023: £0.4 million), the loss before taxation for the period was £1.2 million (H1 2023: loss of £1.2 million).
The Group incurred a net cash outflow during the period of £0.2 million, compared to the balance reported at 30 September 2023. The main components being:
· Cash inflow generated from operating activities of £0.7 million (H1 2023 £0.3 million);
· Payments of lease liabilities including IFRS16 data centre leases of £0.8 million (H1 2023: £0.5 million); and
· Cash outflow from investment in assets, interest payments and payment of deferred consideration totalling £0.1 million (H1 2023: £0.1 million).
Outlook
We have made some headway in terms of accelerating sales and delivering excellent customer support levels during the year and this work will continue. In addition, we have identified a number of operational efficiencies and savings that have been implemented that will help to drive down our costs and will in turn improve cashflow to help strengthen our financial position. We will continue our efforts to grow and improve the business by building on the foundations we have created to date. |
Chairman's Statement
I am pleased to report our interim results for the period ended 31 March 2024.
During the period under review we have continued to focus on three key strategic objectives:
• to accelerate sales;
• to maintain excellent support levels; and
• to drive efficiencies and strengthen our financial position.
Despite ongoing economic headwinds, we have remained focussed, delivering growth in revenues and Trading Group EBITDA1. Further details of trading during the six months ended 31 March 2024 are set out in the Business Review below.
As reported in the 2023 full year accounts, much of the first six months of FY24 were spent exploring options to refinance the legacy loan notes, which under the original terms were due for repayment in October 2024. This was concluded on 29 April 2024 when we reached agreement with our existing loan note holder, MXC Guernsey Limited ("MXC"), to extend the redemption date of the loan notes to 31 August 2026.
At the same time, Mark Halpin stepped down from the Board and his position as CEO and Ian Smith (CEO of MXC Capital Limited, the parent of MXC) joined CloudCoCo, initially as a consultant to the Board, acting as Interim CEO of the Group's trading entities.
Ian's initial remit is to carry out a full strategic review of the Group, in order to advise the Board on where the value sits within the business and how that value can be maximised to improve the Group's trading performance and financial position. MXC remains supportive both as a shareholder and loan note provider. However, it is clear that the loan notes will not be able to be repaid within the required period via operating cash flows and so we continue to work with MXC to find the best solution for the repayment of the loan notes.
The Group is complex and it is taking time to analyse all of the data into the four business units we believe best reflect the services provided, namely Managed Services, Infrastructure Services, Telecoms and Product. This analysis will help determine the core and non-core elements of the Group and will underpin the value maximisation work referred to above. Going forward, we hope to be able to provide further reporting in each of these units.
This work is ongoing and we will update shareholders as we progress. We understand this has been a prolonged period of uncertainty and want to reassure investors we are are committed to navigating it with determination and transparency.
In our daily activities, we are continuing with a "business as usual" approach, focussing on sales and pipeline generation across all of the Group's revenue streams. Despite the challenging economic environment we continue to operate in, which is impacting the purchasing decisions of certain of our customers, we had some pleasing new business wins during the period and continue to build a solid pipeline. Mindful of the broader economic realities, and to improve our working capital position, we continue to reduce costs within the business wherever possible to ensure we are as efficient as we can be.
I would like to thank our staff for their continued commitment during this transitional period and their hard work in retaining key clients and delivering high customer satisfaction levels.
With the continued support of our staff, customers and suppliers, we look forward to making continued steady progress in the second half of the financial year.
Simon Duckworth
Chairman |
Interim Results
CloudCoCo (AIM: CLCO), a leading UK provider of Managed IT services and communications solutions to private and public sector organisations, is pleased announce its interim results for the six months ended 31 March 2024 ("H1 2024").
Financial highlights:
·
Revenue increased by 11% to £14.3 million (H1 2023: £12.9 million), of which 62% was generated from Managed Services (H1 2023: 70%)
·
E-commerce revenues from MoreCoCo increased 125% to £3.6 million (H1 2023: £1.6 million)
·
Gross profit remained stable at £4.3 million (H1 2023: £4.3 million), a reduced margin of 30% (H1 2023: 34%) as a result of the increase in e-commerce and other one-time revenues which typically command a lower margin
·
Continued focus on saving costs and increasing efficiency, with administrative expenses reduced by 4% to £4.9 million (H1 2023 £5.1 million)
·
Trading Group EBITDA1 increased by 33% to £1.2 million (H1 2023: £0.9 million)
Operational highlights:
·
24 new "logo" customers added in the half (H1 2023: 27), reflecting the continued investment into the Group's sales and marketing functions
·
New multi-year customer wins including Support Warehouse, Allied Services Limited and High Availability Hosting Limited
·
Increase in Cyber Security revenues driven by real-time threat reporting and management
·
Strategic partnerships with Ingram Micro and Solace Global Cyber continue to enhance the Group's capabilities and create new revenue opportunities
·
Continued improvement in customer satisfaction levels currently sitting at 97.8% at June 2024
·
ISO27001:2022 Accreditation extended across all Managed Services businesses
1 profit or loss before net finance costs, tax, depreciation, amortisation, plc costs, exceptional costs and share-based payments
Ian Smith, consultant to the Board and Interim CEO of the Group's trading entities, commented:
"These interim results do not reflect the period of my tenure, but they do highlight a number of the challenges that the business faces and which we will work on resolving to ensure the Company can meet its liabilities and is able to look to the future with confidence." |
1% of free float announced after hours.I'd say a worked sell, however the action the last few days might seem otherwise. |
Wakey wakey |
Seems someone bought 326590 yesterday at the full 0.4 asking price, then flogged today for a 10% loss plus fees.
Sounds "hazl-esque" trading style to me. |
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