Falanx Share Discussion Threads

[superg1] 07/2/2018 11:18

PJ

As you well know that can be whatever they want to call it within reason and it wasn't meant to mean full cash needed to cover 12 months.

Of course it's the cash needed combined with anticipated revenues and costs etc.

It's the forecast plus any cash they think they may need obviously to make it a going concern.

As anyone knows you can't let the cash get low and keep fingers crossed that everything works out well.

PRG did that and suspended never to return.

They may fund raise they may not but as it stands it's seems more likely than not.

Typically a market will run down the share price to a fund raise and where has it been going in the last few months.

I don't fear fund raises so why should any holders here. It's just a relevant topic currently on this one.

[djj2014] 07/2/2018 10:57

Having kept an eye on this company I feel that they are a good buy. I bought my first holding today which incidentally showed up as a sell. I suspect that many of today's sells are actually buys.

[pj 1] 07/2/2018 10:50

superg1
7 Feb '18 - 10:47 - 4231 of 4231
0 0 0
DJ

Well if they were due to run out of cash within two months then they would be in the mire so clearly not and I for one am not saying that.

The point is it seems they need to fund raise to qualify as a going concern unless of course you think they are fully funded for the next 12 months.
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Again incorrect. This Board is full of incorrect assumptions.
A 'going concern' statement can take account of forecast estimated cash flows

[superg1] 07/2/2018 10:47

DJ

Well if they were due to run out of cash within two months then they would be in the mire so clearly not and I for one am not saying that.

The point is it seems they need to fund raise to qualify as a going concern unless of course you think they are fully funded for the next 12 months.

[kaka47] 07/2/2018 10:46

Up yours From the customers mouth"The Chief Information Security Officer (CISO) of the firm said "we are delighted to sign up to the MidGARD service. We believe we're disrupting the traditional approach to security in the legal sector with regard to information security. Falanx was set apart from their competitors because of their market leading technology and business partnering approach."

[pj 1] 07/2/2018 10:46

DJJ2014
7 Feb '18 - 10:42 - 4227 of 4227
0 1 0
As part of the vetting process for the new contracts, a client would not enter into a multi year contract with a company that is expected to run out of money in the next month or two.
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errrrr.....similar to Carillion you mean?

[toyin] 07/2/2018 10:45

DJJ2014

Stop coming up with sensible, intelligent comments you will spoil the tone of the board!

All the best

[djj2014] 07/2/2018 10:42

As part of the vetting process for the new contracts, a client would not enter into a multi year contract with a company that is expected to run out of money in the next month or two.

[onjohn] 07/2/2018 10:39

sell and buy after placing might be wise

[toyin] 07/2/2018 10:33

eBomber

Thanks for the WARNING, close the door on your way OUT!

[ebomber] 07/2/2018 10:26

THE ELEPHANT IN THE ROOM IS THE LACK OF CASH

CASH EXPECTED TO RUN OUT WITHIN 5 WEEKS

EXPECT DILUTION WITHIN NEXT 3 WEEKS

[pj 1] 07/2/2018 10:13

eBomber
7 Feb '18 - 10:04 - 4221 of 4221
0 0 0

You posted too late

[superg1] 07/2/2018 10:12

15th November

It's one of the first comments in their results

"The Board is pleased to announce robust growth and believes Falanx is on track to deliver against markets expectations of achieving profitability in the year."

So have they or haven't they we'll soon find out. I'm not suggesting either way just asking the question.

After all they have plenty working for them that could be screaming buy to mates if all was fine and dandy with profits on the way but the share price is about 40% down since November.

[ebomber] 07/2/2018 10:04

FLX urgently need a missive TODAY from its PR consultants TW / ShareProphets to reassure shareholders to keep on holding because apparently FLX will make a profit in this financial year and NO FUND RAISE..........as clearly stated in Sep 2017 interims (see below).


Extract from FLX September 2017 Interims

The Board is pleased to announce robust growth and believes Falanx is on track to deliver against markets expectations of achieving profitability in the year.

Period Highlights
Financial
-- Continued growth across all service lines with significant growth in revenue year on year
o Group Revenue +18% increase
o Cyber Revenues +40% increase
o Intelligence Revenues +9% increase
-- Cash balance of over GBP1m on 30(th) Sept 2017 (Sept 2016: GBP0.8m)
-- Balance sheet entirely equity financed and debt free

-- Placing of GBP2m of equity in May 2017 used to undertake acquisitions, seed the development of MidGARD and augment growth


Cash burn appears to be at a rate of some £1 million every 4 months (£250,000 per month) based on companies own calculations.

If £1 million cash balance on 30 Sep 2017 and no significant revenue then placing due in next 3 weeks (14 trading sessions).

Keep your powder dry and pick up some cheap stock at sub 2.5 pence in next month. They clearly need another £2 million in the very short term.

Welcome the contract news today but additional £20k revenue per month (today's announcement) plus the other recent £7k pcm is not substantially covering the £250k cash burn per calendar month.

The pattern is make what appears to be a significant contract announcement (£20k per month), everyone buys and the share price increases then announce fund raise within 2-3 trading days. Unfortunately, I am struggling to see any significant buying of FLX today on news and expect it to slowly drift down from the 7% gain (at time of writing).

Time will tell..............diary note for Friday 23 Feb 2018 to reflect back to see level of dilution expected to be sub 2.5 pence.

[nearlythere] 07/2/2018 09:54

If memory serves correctly I think falanx management mentioned that contracts are front loaded so how much of the 1.2 million is expected upfront. If they can continue to sign contracts over the next 9 weeks the upfront payments may help to get over this period. So contract momentum is everthing.



"The Chief Information Security Officer (CISO) of the firm said "we are delighted to sign up to the MidGARD service. We believe we're disrupting the traditional approach to security in the legal sector with regard to information security. Falanx was set apart from their competitors because of their market leading technology and business partnering approach."

Assuming that the CISO knows what he is talking about (and possbly earns more than the complete falanx board put together), IMO that is a hell of a statment of confidence in midgard by a "An award-winning UK Top 20 International law firm "

[superg1] 07/2/2018 09:51

Aka said 60p coming which is a £90 mill market cap. Since the last 60p share price the shares in issue have trebled.

If they did a 4p fund raise for £2 mill that would make it a £120 mill market cap expected.

So some knowing cash burn is in play and cash dropping consider it's highly likely that a fund raise is due soon.

So if Midgard is to see big revenues and profits then it would be one to buy and time will tell if that will be the case.

[superg1] 07/2/2018 09:46

Some of you are missing the point.

Someone posted an email from the company re negativity.

So in that RNS they had the chance to re-iterate expected profits as per the previous RNS which would combat negativity but hey didn't

All I am saying is as they have stated they will be in profit and ahead of market expectations then if they are not they will may have to sate so in an RNS near the time.

Perhaps they will be perhaps they won't but they will soon know within weeks for sure.

[sclper] 07/2/2018 09:38

Yump -It was stated in an rns that 'the use of MidGARD will eliminate the costs to the Company of licensing an off the shelf product, resulting in an expected operational cost reduction of approximately £0.5M per annum, when fully rolled out.'

[yump] 07/2/2018 09:07

It would be handy if some info. on the savings from using MidGard was produced. Because its their own, it was supposed to remove third party licensing costs. That may have been a minor thing, I don't know, but if they're moving all existing clients onto it, presumably some savings will emerge.

[yump] 07/2/2018 09:04

.

Removed sarcasm !

[owenski] 07/2/2018 09:02

I get what you're saying though Yump, and indeed, it doesn't mean a headcount increase, but could do at some point. would be good to have some clarity on margin though.

[owenski] 07/2/2018 09:01

Hi Yump, the terminology used on some contracts was 'managed' services.

The structure of some of their offerings involve non automated processes, they have IT workers involved in managing a security contract, unlike just downloading software and letting that do an automated process. Therefore, the contract values will involve 'wages'.

[opodio] 07/2/2018 08:58

no mention of near term profits


contracts doesnt even cover the boards salaries

[rathean] 07/2/2018 08:58

Ignore the shorters, SaaS delivery building in subscription revenue for years ahead. Now delivering into the financial market as a disruptive service, great outlook and starting to deliver on their potential.

[yump] 07/2/2018 08:56

owenski

You or I have no idea whether FLX needs extra labour or not to fulfil the contracts.
If the first two are renewals, then those won't.