So here’s the statement in the last final results.
‘Gross profit increased by 6% to £8.4 million (2022: £7.9 million), a margin of 33% (2022: 33%)’.
So why isn’t there a clear plan to pay the inherited debt back to MXC. If we didn’t have that unaccountable debt without a plan to pay it back then yes 10p wouldn’t be far off!! Well they say it’s not over until the fat lady sings and I don’t hear any singing !!! Keep the faith 🙏😀 |
We'll look who's throwing a tantrum today.Take your losses like a man eh? |
I suppose I just assumed it was about a competitor operating in northern england, but unsure if it was a threat to CLCO or just an indication of industry growth. Sorry I didn't do any extra research around it. |
Coordwainer read your link above and can’t see what that has to do with Cloudcoco, care explain? |
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. |
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