Falanx Share Discussion Threads

[kaka47] 21/5/2018 18:09

It's off the shelf and scalable just read RNS

[yump] 21/5/2018 16:14

PJ1

;-)

But surely some are more on target than others - ie. losing a couple of million instead of 10 ?

[yump] 21/5/2018 16:13

I think what 'supporters' need to realise is that although MidGard is a product, its not a box of tricks sold as a package off the shelf. Its sold as part of a service. So its not a scalable thing in the same way as say McAfee virus. It can only grow as fast as they have sales meetings, discuss the exact requirements and sign up the clients, not just by being bought in any volume, even as a result of reputation.

[kaka47] 21/5/2018 14:11

Q1 current quarter

[pj 1] 21/5/2018 13:38

Isn't every Company ''on target'' for profitability?

[nearlythere] 21/5/2018 13:37

KaKa47
But when??

[pj 1] 21/5/2018 13:22

Assuming for 70% GP (realistic or not) of midguard then GP could be 35%

Did his comments refer to pre or post the acquisition. If so then you can just about argue break even. If not then Yump is probably correct. As often happens the opaque update doesn't help PI's and opens more questions than it answers.

[kaka47] 21/5/2018 13:16

He did say they are on target for profitability

[yump] 21/5/2018 12:23

Revenue: £5.7mln
Cost of sales: £3.8mln (same % as interims)
Admin: £4mln (including £1mln from First Base)

Gives approx. £2mln loss, excluding an inevitable biggish chunk of exceptionals etc. as a result of First base t/o.

I'll have a guess at final loss of £3mln for the year.

[nearlythere] 21/5/2018 11:39

YUMP

IMO there is little point on commenting on those figures. I will assume that this management team is professional enough to report anything that significantly changes falanx financial position to shareholders through RNS and not via a speech to a conference.

What concerns me is the very start of the video and seems to confirm my view that additional issues are coming as they buy other small companies. I doubt the current 500,000,000 shares will be enough.

Your view of margins seems to be confirmed by the need to get >1 million @4.5p

However if turn over is 5 million as suggested by Kaka47, the lack of any mention of breakeven imo is even more concerning as it may indicate that costs are rising at a greater rate.

As a shareholder I have to expect management to release information that is financially important via RNS so I will wait for RNSs which hopefully will be coming shortly from the highly advanced pipeline, ( assuming it has not sprung a leak).

[scotty666] 21/5/2018 11:18

It’s normal to talk gross margin when discussing product line profitability so not sure what all the fuss is about.This should be obvious to most people even at GCSE business studies level.
Anyway moving on, the business seems to be doing well and growing across all product lines, given the low market cap plenty of room for share price appreciation assuming continued positive news flow.
Good Luck

[on target] 21/5/2018 11:02

Yes he was talking about revenues - no-one has said any different.

[yump] 21/5/2018 09:35

Actually I doubt that 'John' is talking about net margins, because if he was, FLX would already be in profit and at least easily at operating breakeven and they would have been announcing it.

imo those are gross margins or some other vague margin designed to look good.

For those who want to figure it out:

Net margin=revenue-operating costs... and depending on where you look:

Operating costs are expenses associated with the maintenance and administration of a business on a day-to-day basis. The operating cost is a component of operating income and is usually reflected on a company's income statement.

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. ... Salaries of senior executives and costs of general services such as accounting are examples of administrative expenses.

So if he is really talking net margins, all the admin. costs and exceptionals need to be taken off to get to final profit.

Operational break-even should be the next target, but they don't mention that any more.

[kaka47] 20/5/2018 18:13

Falanx cyber security On course to become Profitable in current quarter..Only capped below 15 Million.. Currently revenue running circa 5.7 Million and growing rapidly...1) MidGard 24/7 Auto monitoring business revenue circa 1million and growing very rapidly with net margins circa 70%.....2)Intelligence business revenue running today at 2 million3) Assessment business revenue 2 million 4) Consultancy business revenue 500k5) Response business revenue 200kNet margin 2/3/4/5 divisions 25%to 30% ....On Top That Version2 MidGard for big giants should start generating revenue soon...Watch latest video JB Giving out serious figures on all businessesow.ly/wSf530k2Lz3

[kaka47] 20/5/2018 18:00

Wow John gave some interesting insight in to all the divisions ...1)Intelligence business revenue running today at £2 million2) assessment business revenue £2 million 3) consultancy business revenue £500k4) Response business revenue £200kNet margin on all above 25%to 30% ....And finally disruptive MidGard 5) MidGard monitoring business revenue circa £1million and growing very rapidly with net margins circa 70%That's circa £5.7 million annual revenue at today's date John has quoted ON Course to become profitable in this current quarterOn Top That V2 MidGard should start generating revenue in Q3 I reckon

[yump] 20/5/2018 17:08

Net margin is before admin. costs, so margins can look great.

I suggest you do a quick post with some assumptions on admin. costs to help convince people. Its pretty easy stuff. No clues. Then you'll be able to estimate what revenue is needed to make a clean profit.

[hamidahamida] 19/5/2018 20:44

Wow John gave some interesting insight in to all the divisions ...1)Intelligence business revenue running today at £2 million2) assessment business revenue £2 million 3) consultancy business revenue £500k4) Response business revenue £200kNet margin on all above 25%to 30% ....And finally disruptive MidGard 5) MidGard monitoring business revenue circa £1million and growing very rapidly with net margins circa 70%That's circa £5.7 million annual revenue at today's date John has quoted On Top That V2 MidGard should start generating revenue in Q3 I reckon

[yump] 19/5/2018 17:42

Judging by the immense level of disruption that MidGard has produced, resulting in the huge hike in revenue, I can't wait to see the disruptive effect of V2... perhaps even exceeding the effect on the earth's rotation of a snail moving.

[kaka47] 19/5/2018 15:30

Serious watch this video JB Giving out serious figures on all businessesow.ly/wSf530k2Lz3 In this video, Mike Read, John Blamire and founder of First Base, Peter Wood discuss the latest developments in the #CyberSecurity market and why investors should be excited about what?s ahead for the Falanx Group#FLX #UKInvestorShow

[kaka47] 19/5/2018 15:23

In this video, Mike Read, John Blamire and founder of First Base, Peter Wood discuss the latest developments in the #CyberSecurity market and why investors should be excited about what's ahead for the Falanx Group ow.ly/wSf530k2Lz3 #FLX #UKInvestorShow

[sclper] 18/5/2018 16:39

What broker allows you to take a short position in FLX?

[escapetohome] 18/5/2018 15:49

I wouldnt touch these with a short.

Surely there are far better opps.

[scotty666] 18/5/2018 15:40

Seems an odd stock to single out for a short position but each to there own I guess.
Good Luck

[toyin] 18/5/2018 15:34

eBomber

Give me your address I will send the Burneze in advance, no charge its on the house!

[ebomber] 18/5/2018 14:36

.......tipped somewhere in advance of a fundraise?

I now have some skin in the game and shorted these yesterday.

Lets see if I get burnt .................