Earthport Share Discussion Threads

[cryptotrade] 29/3/2018 12:59

Sirrux

if only they could tap into this exchange, if it was legal.

[silkstag] 29/3/2018 09:17

EPO got fired by apparently its largest loss-making customer, which was ecommerce.

New management in Oct 2019 will need a 3p refinancing round and would chose to axe the worse contracts and accept turnover will fall to c£15m pa. In the long run axing the worst could in theory stop the margin slide but the market has so many new age competitors that they may be raging against the tide coming in. Also they are a volume business so losing massive volume will reduce margins.

EPO is dying. The volume they need is burning cash having been won with lowballs. Losing it kills scale. Keeping it is worse. Everything at a business operations level is just broken by naive bungling and past pandering to the stock market to prop up the faulty bloated management team. Uberoi as a virgin CEO did not have the required business acumen. Hickman is a beaurocrat thus of little help. Simples.

Needs entirely fresh start. Operations and client bloodbath. New financing. Target October 2019.

680m new shares @3p = £20m fresh cash. That would give total 1.3 billion shares so market cap £40m post rescue funding. Target post-axing turnover would be £15m so valued x2.7 which looks very high given the mess e.g. shutting city centre offices, firing staff, rehiring admin and compliance people in cheap locations etc.

EPO is dying under current management. 5 of 7 gone in just over 1 year proves this truth. Bulls can peddle management bull$h@# but no happy ending is possible.

MANDATORY SELL.heading for 3p.
Mug buy. Hubris hold. Savvy SELL
All imho. Dyor.

[cryptotrade] 28/3/2018 17:30

nice time to reflect

Looks like they expect £2.11, so they were wrong and lied again. It went to £2.87. Do they think £1.69 will come in as a true result.

gawd, first you lie about when -5p will happen, now they lie about the price crash travelator. they are making too many assumptions. silly.

[cryptotrade] 28/3/2018 17:23

I see there is no longer any mention from silky the revenue per transaction was to fall and fall.


Improving outlook
Reporting on Tuesday was cross-border payment services company Earthport (LSE: EPO). The company’s half-year results showed that revenue grew by 8% compared to the prior period. Its transactions and payment volume continued to be robust, with payment volume increasing by 12%. Average revenue per transaction was up by 9% to £2.87, with this largely being caused by the discontinuation of the low-value e-commerce business.

The company enters the second half of the year with a record pipeline. This could put it in a strong position to deliver further growth, with there being particular opportunity within the banking and e-commerce sectors. The business is still aiming to become cash flow break-even by the end of the next financial year. This could have a positive impact on its share price performance and may show investors that it has the capacity to deliver strong returns.

Clearly, Earthport is a relatively small and unprofitable business which comes with a significant amount of risk. However, with its shares falling by 60% in the last year, it could offer good value for money at the present time. For less risk-averse investors, the stock could be worth a closer look for the long term.

[cryptotrade] 28/3/2018 14:35

hope you don't mind silky, I'll ignore your price predictions for today. After two price predictions of -5p in Feb, then -5p in March, both of which were lies, I'll ignore these ones for now.


Don't tell me 0p by 2030. yeah you never know. in the meantime, you've lied and should apologize.

[cryptotrade] 28/3/2018 14:08

Can you stop double posting like a troll. if you continue, i'll report your troll activities.


Sirrux, I can't see that 20m buy order yet. I get your point.

[sirrux] 28/3/2018 13:41

Silky, it's what you can't see on the order book that matters. I hope you know that.

[silkstag] 28/3/2018 13:02

Orderbook buy side is soft as an EPO bull's grey matter.. Imho. Dyor

[silkstag] 28/3/2018 13:02

Orderbook feels like it will soon slip to take the buy volume at 10.5p; then slide back to 8p. AiM shares cannot tread water for long. Sellers will rightly cut their losses. H1fy18 results were horrific. Imho. Dyor

[cryptotrade] 28/3/2018 12:12

haha

don't forget Sirrux

its -3op

[silkstag] 28/3/2018 08:42

Will EPO be 'taken over' by an Administrator in 11-17 months? Depends if a holder pulls together a new rescue board to sack the entire current board and implement an office-closing cost-axing restructuring plan and new funding @3p. That could avoid Administration. But current board will definitely go bust (for the 3rd time with failed business model and run out of lies).
MANDATORY SELL. Heading for 3o.
All imho. Dyor

[nimrod22] 27/3/2018 21:59

EPO.... a takeover target?

[sirrux] 27/3/2018 18:51

I liked this new snippet:"we recently had an all-time record day of transactions processed"Sounds like a maturing business to me, who wouldn't want to lead it? I am keen to add but will probably wait until we see the new chief hires as it's holding steady while we wait. They are not hyping it, like some who are now actually explaining to their investors that they got a bit too excited about cross-border payments. A bit like EPO in 2005, who are now well past that sort of mentality, lol.

[sirrux] 27/3/2018 17:50

Caradog, I don't think the titles matter as much anymore as they did in the old days when people believed they were working for "higher beings", it's normally just done for clients and outsiders so they can put a diagram together. Collaboration and what you know is key now, Hank will probably be happy to leave if they hit a £1bn+ market cap and let the new CEO run the show, he's done with that part himself and will make more than enough from the shares. I doubt if Hank is in it for the pay, more so he'd like to see the dream become a real success. If the new CEO is worried about organisational charts when there are much bigger issues at stake, then that's a bad hire in this age where a whole new technology could arrive at any time.

[cryptotrade] 27/3/2018 14:10

what happened to -5p today. Oh well, like you say , dying , yes your -5p target.

Is it now -5p sometime from now till year 2060. Yep you may be right.


You got your 8p. Be happy. Nah, you want death. What a loser you are. Bitter to the core. Waster for sure, arrogance for sure.

Don't engage, engage in the truth.

[silkstag] 27/3/2018 10:38

Caradog, savvy post.
EPO is dying imho

[caradog] 27/3/2018 10:03

Sirrux, no dynamic and ambitious CEO would go anywhere near a company where the previous CEO has just become executive chairman. In fact, the stream of executives and managers leaving the company suggests there is serious dysfunction at board level. One can only infer that Uberoi is either a poor judge of character, or people find him difficult to work for/with.
I think it’s quite instructive to compare this statement with the interim statement a year ago. That was far more positive, and look what happened. 8% increase in revenue with 10% increase in costs says everything.

[cryptotrade] 27/3/2018 09:49

I agree.

He's passionate, but manage those costs, drive profits whilst driving more revenue on clients they have and shaping the future.

I do wonder, maybe they're still interviewing on costa. Lots of coffees. Someone I am sure will be interested in helping them push it forward, but into the areas they are interested in. The question will be, why would they come to epo if there are plenty of upside options already out there, raising loads of cash. Monzo etc, different sector.

EPO, I know just wishes it was a new company, no history with the vision. They would have got 200m and of they went. No chance here, its tied down at the mo.

If they don't find a decent CEO, they're better keeping it stable and selling it. It will be a great buy once they cut the fat.

Its deffo 1 billion if they can start scaling.

[sirrux] 27/3/2018 09:34

CEO/deal announcements will be key. Would be good to see the new breed of CEO coming through, one that doesn't care about salary or bonus because they are going to blow the share price sky high and aim for 1bn market cap in 5 years. Steady hands on board aplenty to keep an eye on things, no need for more of those. Hank's got vision so let's keep him for strategic purposes but must bring deals.

[silkstag] 27/3/2018 09:19

H1fy18 loss - £4.8m inc unrealised fx gain £1.2m so real loss is -£6m. That is the base for h2fy18 loss e.g. the fx can reverse so increase the next reported loss.

Cash burned in 6 months is -£5.6m.

H1fy18 Turnover is £15.4m so less than the £16m in h2fy17. Turnover not just stalled but sliding down.

Gross profit crashed from 69% to 62%. That is a huge and hope-crushing fall in just 6 months.

5 of 7 senior management gone in a bit over a year. They knew EPO is dying.

Declining turnover, crushed margin, cash BBQ burning away ... going bust!

Another disaster 6 months.

MANDATORY SELL. heading for 3p in 11-17 months.
All imho. Dyor.

[cryptotrade] 27/3/2018 08:55

On the 19th Jan, epo stated "Earthport further developing its relationship with a leading tier 1 US bank".

I suspect its possible getting the NY Transmitter licence will help them work with the tier 1 us bank. I assume its linked.

It could be Bank of America wo they had already said they were expanding the relationship. If its not them, it could well be JP Morgan or others like them, moving large amounts of money between Europe and the US. The volumes would be big.

EPO is also applying for other US liceneces, so for me, its what will this generate in terms of revenue.