Earthport Share Discussion Threads

[epo4eva] 27/7/2017 14:32

Admin costs have been the same for the last 2 years @ £25m
Revenues has increased by £8m with the same admin costs.

[silkstag] 27/7/2017 14:20

Average revenue per transaction:
FY15 £4.78
FY16 £3.12 [down 35%]
FY17 £2.64 [down 15%]

H1FY17 was £2.70 (H1FY16 £3.26) so the big slides occur mainly in H1 each year.

If it falls another 15% in FY18, that would wipe out an extra 37% of transactions i.e. no closer to breakeven with 37% more transactions. EPO loses the 15% price discount but also loses the cost of sales and extra admin costs on the extra 37% transactions.

Earthtanic is trapped in a triple whammy death spiral, caused by brutal sliding prices, extra processing costs incurred with extra transactions and the delusional profligacy of grossly excessive central City of London overheads, for this admin business that should have been re-located in an ultra low cost place. Gross negligence, ego and hubris.

These are wise words. Maybe Peter Klein worked this out too?
Take head honest investors, 'triple whammy death spiral'.
All imho. DYOR.

[epo4eva] 27/7/2017 13:54

The last 2 years we have needed £25m a year with a steady 185 employees to run our company.

We have smashed last years revenue to £30m and with a 68% gross profit margin we are going past breakeven.

Revenue has gone from £22m to £30m even with the reduction in transaction fees.
Growth and profit is coming.

[isaready] 27/7/2017 10:22

I see Silkstag is being his usual self

[madmonkflin] 27/7/2017 08:00

Can't believe you're asking it questions

[epo4eva] 26/7/2017 23:26

Silkstag - hello what is your take on the extra £500,000 in cash from £11.4m to £11.9m ?
Could have been profit made from the huge jump in turnover?

[chadders] 26/7/2017 20:06

They may well run the business but they have some heavyweight institutional investors they answer to. They will be happy to reward success but there will be no prizes for failure I can assure you.

I note the troll is back pedalling furiously but still spouting absolute rubbish.

[silkstag] 26/7/2017 18:07

ps the difference in valuation metrics is why stinky, improper and apparently unlawful EPO management cover-up the split of core versus FX turnover and profit. Hardly a true and fair view! imho. dyor

[epo4eva] 26/7/2017 18:02

Madmokfin - Epo has said in the rns that they are on target as of the investor day 2016.

[madmonkflin] 26/7/2017 17:13

can assure you if those targets aren't met they'll be revised to a lower figure, seen that with many other companies, after all they're running the business.

[chadders] 26/7/2017 17:03

Senior directors of EPO are due to have a second tranche of shares to be issued as part of a three-tiered long term incentive plan. 5 million shares are up for grabs but are subject to a ratchet based on a three month period where the share price has to be in the range 45p and 75p. A third tranche is on offer the following year again on a ratchet if the share price range is 75p to 100p.

[nimrod22] 26/7/2017 16:08

24p now being paid to buy !!!

[madmonkflin] 26/7/2017 13:28

that would unbelievable. I'll have to check the presentation. how many multiples then on current share price?

[epo4eva] 26/7/2017 13:18

The reduced transaction fees are were in the epo 2016 investor day along with £125 million profits in 5 years time. Now 4 years.

[isaready] 26/7/2017 11:55

Time will tell, but I get your point.

The thing is, if they can push the volumes way more than the decrease of the payment average, then that's fine. It depends what drives the value down. They fact they display this is significant in my view.

It shows how they are able to scale, grow, compete. Competitors will see, but so will clients and demand similar value. If they don't get it, eventually, others will move over to the more efficient service.

Turning points:

No more burning cash
Payment volume > average transaction decrease value
Profits

[madmonkflin] 26/7/2017 11:16

25% margin, every year, + increase in revenues, all bodes well for future, just need a deutsche bank on board. not so keen on the H2 per item revenue, I reckon that's down at around £2.59, someone needs to ask where it's likely to end up as it's been going down continuously year on year.