Geong Share Discussion Threads

[mattjos] 31/5/2013 00:42

Does SAGE actually have enough columns in its Aged Debtors report to detail all this or, has it now become a meaningless Aged figure that is ignored by management whilst they try to concentrate on more recent sales to dig them out of this mess?
Just take 40p on the £1, clean the slate & move on with revised T&C that are rigidly enforced or, write the lot off as 'R&D' and pocket the Tax losses for later. Who are the accountants & what is their advice?

[mattjos] 31/5/2013 00:37

fgsake, what the hell are the contract T&C of this company for receivables?
They are being bled dry on Debtor days and seem not to care. I don't know any other business that operates like this.
I can only assume that what they are delivering is in some way, way short of customer expectations, hence the continuing delay in paying, else their accounts receivable dept is permanently AWOL or, there is something going on behind the scenes that is nor being declared to the market.
If they don't get on top of this during the course of this year I'd suggest they'll be bust.
If they are factoring their debt, the interest rate & late payment penalties on the factored element of the debt is sucking the profit out of the work they are doing.
They need a new broom & fast cos dreams & IT jibber-jabber wont pay the overheads.
Bloody laughable as far as most 'Western' business practices are concerned.

[davidosh] 30/5/2013 23:18

Thanks Janeann. I think that is a question we would all like answered. There are so many things that do not add up when you look with hindsight and there have been so many broken promises and poor guidance as to when the receivables situation will improve but it just never does !

I am not going to go into too much detail but I am asking many questions and would like to see directors answer them.

[janeann] 30/5/2013 16:33

i'd like to know why they borrowed money when they apparently have so much cash in hand. (and then why they didnt pay the debt off!)

Whatever, good luck davidosh in your efforst to get this turned around!

[augustusgloop] 30/5/2013 16:19

davidosh,

I assume that they have frequent strategic reviews - all of which end with a decision to continue to lie to shareholders.

The strategic details are:
How much shall we say that we are holding in cash?
How much shall we say that we are making in profits?

I remember a couple of years ago when their stated debtors of more than one year old were greater than the entire debtors of the previous year.
And when the two compnents of their business had respective shares of 45% & 69% (or something).
This would never happen if they were using real numbers.

What must the total owed to them be in terms of number of sales days?
It was near two years or work when I last looked.

[davidosh] 30/5/2013 12:45

Cash worth 6p / share.

Receivables worth another 45+p.

-----
51p ??
----

Investor confidence in Geong = -48p

(Trust, management reliability in meeting deadlines, ability to shock the market with bizarre decision making, 'growth in receivables' horror story)

Hence

Share price = 3p

I am not going to paint a pretty picture here and I am a significant holder.

I am keen to do whatever is needed to close that confidence gap...just 10p of it would do for me. The directors should look at themselves in the mirror and tell us what they have achieved for investors in the last seven years !?

Then get off the pot and lets have a strategic review to enable value to be returned to shareholders !

[sir rational] 30/5/2013 10:39

Cash worth 6p / share.

Receivables worth another 45+p.

Ascribe value to business going forward.

[sefton1] 30/5/2013 09:26

Cash alone worth 6p a share after CULS. Happy to hold.

[janeann] 30/5/2013 07:58

esmith3; thanks and thats why i used the word 'apparently'!

[stegrego] 30/5/2013 07:57

Cash is probably nearer 3 pence than 3 million....

[esmith3] 30/5/2013 07:50

Quick and dirty summary.

Good
£1.5mln CULS repaid without further balls-ups.
They allegedly have some cash (Would it be too much to hope they might pay off the remaining £1mln CULS without penalty at some stage)

Bad
Receivables increased AGAIN!
Challenging trading
Reduced margin


janeann, I think all bar about £200k of the £1.5mln CULS repayment was made after FY end, so cash is probably nearer £3mln.

[jwe] 30/5/2013 07:49

TR up yet again,really?what a surprise!

[zangdook] 30/5/2013 07:42

the word 'pleased' doesn't quite fit there, does it?

[janeann] 30/5/2013 07:15

well pigs might fly........

Trading performance for the year ended 31 March 2013 was broadly in line with
that of the previous year with turnover at a similar level albeit at a reduced
gross margin. As in the year ended 31 March 2012, the Company expects to report
a small profit before tax for the last financial year. Trade receivables have
increased over the period as a result of both exchange rate movements as well
as an increase in accrued income due to invoicing delays whilst changes to the
national tax system were being implemented. The cash balance at 31 March 2013
was GBP4.5 million and the Company has completed repayment of the GBP 1.5
million of convertible unsecured loan stock referred to in the announcement of
28 March 2013.

GEONG has continued to execute its strategy of working closely with its
existing customers and trying to drive more business from IaaS to SaaS in order
to achieve a higher average margin and to improve cash flow.

Market conditions remain challenging but the Board remains confident of GEONG's
business model and its potential.



very mediochre but they still have 4.5m apparently. Dont like the turnover at a similar level albeit at a reduced gross margin'.

[sir rational] 23/5/2013 19:37

Julying David ;-)

[davidosh] 23/5/2013 08:31

Lol...yes I very sensibly did not say which morning !

They were not released this morning either. May or may not...June approaches !

[janeann] 22/5/2013 19:15

davidosh.... is that an informed guess...... I will be up at 7 and wait optimisiticly, and at the same time be prepared for nothing.

janeann

[mudbath] 22/5/2013 11:28

I think he meant mourning,where,according to Skyrim, "Mourning Never Comes" !

[fft] 22/5/2013 09:35

which morning ? :-)

[davidosh] 21/5/2013 19:57

My guess would be first thing in the morning !

[kaos3] 21/5/2013 19:54

It is even more worrying due to the known fact that there are many issues going on. GNG can or will not put investors at peace :(

[finkwot] 21/5/2013 19:40

That was a bit of a balls-up with the RNSs wasn't it Dave?

[davidosh] 21/5/2013 10:37

esmith3...I am the same and agree with you. Sadly Geong are very consistent in missing those dates and coming up with different ones so I only use pencil !!

I am on the case and all parties know my feelings on this. If they were based in the UK it would be easier to solve but that is why the share price is trading so far below the NAV as investors believe very little and trust even less at GNG.

It needs key changes, good communication, and deadlines being met consistently with a steady collection of the receivables and increase in the cash. If we get all of those then the share price could quadruple and more pretty quickly. If we just get the last two then it will rise significantly. The price is currently at an option level but how management can be sitting comfortably having presided over this mess in the last two years is beyond me !

Lets see what the update brings ?

[esmith3] 20/5/2013 18:14

Davidosh - I'm not worried as I only have a fun-sized punt in this, but I diarise results, AGM and IMS dates for holdings and noticed GNG had failed to deliver.