Underlying company is doing well SP/Freddie. It's doing all the right things re: consolidation and cost reductions, building the brand (which has an excellent reputation and staff retention), seems the board has not been good enough to take to the next stage. Unfortunately heads have to roll in such a debacle at the PLC level. |
This is the last chance saloon now. I'm relieved that I stopped adding to average down.
MXC will want to protect their investment so still some hope. |
What’s everyone’s position? I didn’t want to see Mark step down at all that was a bit of a curve ball for me. The main ingredient here is profit. Are we now making profit? Yes, so where does it go from here? |
 Typical Beeks response, when the going gets tough just stick your fingers in your ear and shout lalalalala. He can't respond to my points at all so he just filters me instead. What the rest of you should be looking at is the further increase in the debt as reported today.
"Overall Net debt increased by £2.2 million to £6.3 million during the year. A further £1.6 million is owed in lease liabilities and COVID-19 bounce back loans. The Trading Group EBITDA1 of the business exceeded the loan note interest in the year by £1.2 million (FY22: £1.1 million).
On 29 April 2024, MXC Guernsey Limited ("MXCG") agreed to extend the redemption date of the loan notes detailed in Note 21 from 21 October 2024 to 31 August 2026. Interest will continue to accrue on the loan notes at the current rate of 12% until redemption. All other terms of the loan notes remain the same. As consideration for the extension, effective from 22 October 2024, MXCG will charge the Company a fee of £550,000 for providing the extension. Payment of this fee will be deferred until the redemption of the loan notes and it will accrue interest at the same rate as the loan notes." |
This debacle RE: results has also being a complete howler, lets face it. |
So we are back and Mark has gone. Sad to see. Not overly surprising though, Companies need a leader for war and a leader for peace, dependent on the circumstances. I think we are at the next stage for CLCO. |
Expecting an update tomorrow or Monday on progress. As mentioned I expect this now stays suspended until the debt restructuring is resolved. |
Interesting point, yes.You can't win with small caps. If the BOD have no discernable holdings then they are seen as having no skin in the game and aren't committed. Plenty of skin in the game and they have too much control.All comes down to the ethics and character of the board members. I've seen nothing to think that they are nothing but honest. |
ownership structure should perhaps be a worry to general public shareholders, the board can virtually pass any resolution they want |
So just to summarise Jill is the CFO of MXC who the well-known debt is to, and is on the BOD at CLCO, I think we should be in knowledgeable hands don’t you? Lots of fear has been spread about this debt, but DYOR before creating panic or negative posts IMHO DYOR |
Found here: hxxps://cloudcoco.co.uk/investors/board-of-directors/
JILL COLLIGHAN
Non-Executive Director
Jill was appointed Chief Financial Officer of CloudCoCo on 01 October 2018, having previously held the position of Executive Director from July 2017. A Chartered Certified Accountant, Jill has over 15 years of operational experience at Plc board level specialising in finance, human resources, investor relations and corporate finance.
As well as her role with CloudCoCo, Jill is also CFO of MXC Capital Limited, a technology-focused merchant bank and one of the largest shareholders. From 2004 to 2014 Jill was Group Finance Director of AIM-quoted mobile technology provider 2ergo Group Plc.
Jill chairs CloudCoCo’s audit committee and is a member of its remuneration committee. |
Markwell, thanks for the mention as I can’t wait for this to get to 4/5p first, then 10p and beyond 🚀 IMHO ofcourse!! Yes I agree Beeks you do give a balanced view and offers good for thought. This debt has always been known about from day 1 of the takeover from Adept. There’s no surprises here however ofcourse the refinancing needs to be reviewed in the run up to October at the time taking into account present day interest rates. Morecoco has kept growing and performing since inception as we’ve seen by the news updates. The BOD have a history in generating large sales revenues, and delivering here. Expansion with acquisitions has opened up a wider client base to cross sell into. Profit will hopefully be announced as it’s been promised, MXC have a vested interest in CLCO so hopefully we’ll see a favourable solution now that decisions can be made for October. Patience is required here simple as that! I would be an amazed as the BOD own 70% of the company shares if they are not going to make a beneficial choice for CloudCoCo. Read the investors section on the website to refresh yourself with why we are here. Oh btw there’s cash in the bank as well:) |
Thanks Markwell.
I mean, you don't have the monopoly on pointing out the borrowings "on several occasions" - I posted it just a few posts before yours. It's also almost all from the MXC debt so not as though it's an unknown or being used for day to day. The difference of course being that you reckon the sales increases are based solely on increased borrowings - for this we'll have to differ as you are factually incorrect on this. I'd love you to point out where I am not showing a balanced view in the last few months, i've been extremely balanced and know the risks/rewards on the table.
But thank the Lord you are here to point these things out. It's always good to ensure we have a mix of IQs here - the intelligent balanced posts get balanced out with some room temperature iq offerings like your own. But hey, keep pointing out exactly what we all know on the negative side, with some elaborations that are frankly incorrect thrown in.
Suspension means this is moot anyway, lets gets the full results out so we can see exactly what is on the table, good and bad.
Best wishes,
Your pal Beeks |
Agreed. It's hung over the investment for too long.Fingers crossed for a good resolution, although I fear we may be suspended for longer than just this month. |
It would be nice to get the answers soon to end all the speculation. |
It's probably worth printing up the info from the MXC report in December relating to this.
During FY20, the Group subscribed for £3.5 million of loan notes with a five-year term and an effective interest rate of
12% in Cloudcoco Group plc (“LNs”). The principal and related accrued interest is included in non-current Loan notes.
The interest on the LNs compounds annually and is payable at the end of the term, in October 2024.
The Group’s primary outstanding loan balance relates to loan notes and accrued interest held in CloudCoCo Group plc which
stood at £5.4 million at 31 August 2023 and are due for repayment in October 2024
Whilst MXC will of course be supportive and in other cases would maybe have refinanced this, they are in a period of winding down the company and returning money to shareholders so that avenue is likely closed. However if we look at precedent with Tialis the debt was moved to equity at par so this is potentially an option that is being pursued. Whilst this would dilute our shares by circa 40% we would be debt free and profitable (regardless of current growth that we know is in line). For me that's the preferrable option.
It's all conjecture until we see results anyway. Mr Halpin has 30% in the game here so i'm sure he's batting for the right solution. I have approx 1.2% at an average of 1.1p so am awaiting this outcome with a lot of interest!
Best of luck all. |
I can’t see MXC who have a vested interest in CLCO not be supportive. The BOD have done so well to get us this far and so many positives on so many fronts:) I would like to see some massively positive news out of this that will propel the share price to a more realistic value of 4-5p IMHO |
I was going to use smorgasbord:) |
Let's also remember the debt is owed to MXC who are fully supportive of their investment. Same thing happened over at Tialis.
PS Beeks, plethora used to be one of my favourite words! Thanks for resurrecting it :) |
Let's also be mindful that the auditors may be needing clarity on the debt before signing off as a going concern for 12 months. I'm not an auditor so would need someone more qualified to comment. For me it's the most likely reason for the delay.Going concern obviously a scary phrase, it may be it has just focussed minds on getting the debt sorted. There are a plethora of options, from refinance at a good rate with current or new lenders (good) toma placing (fine) all the way to desperation of death spiral if it gets desperate (bad but unlikely).Always good to be aware of all outcomes. |
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