Getbusy Share Discussion Threads

[the ghost who walks] 04/3/2023 12:10

Looking forward to your thoughts and conclusions from mgt speaking

[jane deer] 03/3/2023 23:36

The CFO gives the impression of being on top of the detail and a very safe pair of hands. I don’t personally think the CEO, Daniel Rabie, presents as well but he has had better presentations than today. As well as confusing Ozone and Carbon Dioxide, on the same slide he seemed to get in a muddle over total revenue (£19.3m) and recurring revenue(£18.3m).

While I think the story is still in tact, I think more time should have been spent on the Cash Distribution Plan. It needs to be justified why such a potentially huge expense is in the company’s interest. It also needs to be explained as it really defines the strategy the executive team are going to focus over the medium-term.

[tradertrev] 03/3/2023 12:58

Just watched the IMC presentation. First ever look at this company.
Didn't get off to a great start with the CEO highlighting the environmental benefit of the business in saving xx tonnes of Ozone rather than Carbon Dioxide (or CO2 as was written on the slide)!
Liked the CFO and liked the comments about not running the business on basis of Adjusted Profits and sticking to the core business and opportunities rather than taking the risk of trying to enter the competitive legal market.
JMO but feels like the volume growth has fallen back of late with revenues benefitting more from price increases more than usual (the monetisation initiative).
Looks further along in terms of having established a viable business than Checkit, which I see as a similar story.
Will probably watch and wait for a while, but looks interesting.

[pugugly] 02/3/2023 09:04

Hastings - Thanks for your 290. But some holders choosing to bail out.
Share price getting clobbered now down to 67p bid 68p offered. Seems to be in free fall.
Time value of potential return?

[the ghost who walks] 02/3/2023 07:02

I have no issue with the loan nor the incentive package. The business performance is likely why the shares didn't respond so positively after a run up

[hastings] 01/3/2023 20:38

I plan to add a full write up in a day or two on GETB after the results and my chatting with management today.

However, given a lot of discussion around the loan announcement, I thought it perhaps worth adding what I have picked up today, which may assist somewhat.
I'll stress, it is only what I have learnt, not an opinion and I have no wish to get into a debate, as I am sure there are differing opinions on this.

By all accounts their SVB facility was about to expire later this year and they felt that a £2m facility continued to be within their requirement.
Taking another loan facility was deemed preferable to raising equity in the current climate, which probably wouldn’t go down well with shareholders.
Equally though, the market for loan finance for asset-light, modestly cash-generative businesses such as theirs has tightened and quite significantly. Additionally, the covenants required by SVB for a renewed facility would likely not give them the flexibility that they may require.
By all accounts they looked at various options with many banks and alternative lenders to find what they ideally wanted.
Covenants were seen as similar as SVB whilst other lenders were viewed as having extortionate fees along with equity upside.
As a result, they also explored alternative options including the Institutional holders, which resulted in Clive Rabie suggesting an offer that was actually deemed somewhat better than what was out on the market.
Unsecured, highly flexible in terms of covenants and actually well-priced by comparison with no upfront fees.
The key point regarding the current soon to expire rate is that it would be significantly more expensive, hence the search for an alternative.

The decisions around the facility were also taken by an independent committee of the board, so did not include either of the Rabie family members as would be expected of course.

[the ghost who walks] 01/3/2023 20:29

Good to hear, appreciate your thoughts, conclusions,

[hydrus] 01/3/2023 19:52

Reading Finncaps note it all seems to be about plumping this company up for a sale at some point with valuation focussed on what other companies have sold for rather than delivering profitable growth and valuations based on that. Now I understand why!

[hydrus] 01/3/2023 19:50

So Haworth and Rabie could take 25% of cash distribution in the event say of a sale? In addition to Rabie's shareholding. Sorry but that's absurd. Barge pole stock now. I'd run a mile if I was invested here.

[boozey] 01/3/2023 15:19

Please do Hastings and thanks in advance

[hastings] 01/3/2023 15:04

I've spoken with management and will try and some comment later that may be of use.

[pugugly] 01/3/2023 14:14

FinnCap note:- Masses of figures and assumptions Key point (imo) for new or rebuying investors is the time value of money and the chance of the company being taken over (that is reading betwen the lines of the note)

"I have a headache already"!!

[hastings] 01/3/2023 13:43

Well, you could counter that argument with what happened at ZOO when the CEO's wife provided a loan when the shares were circa 10p!I totally get it and it looks excessive along with being poorly timed, but that said, I remain happy to hold.

[boozey] 01/3/2023 13:23

I agree Jane. You only have to look at MJ Hudson to look what happens when directors start loaning money to the company.

Not an impressive start by Finncap, which doesn't help their ailing reputation as a Nomad generally - especially with the fall today.

The stock is relatively illiquid which means it probably would have to rise quite significantly to attract a new institutional investor but there does not appear to be anyone on the horizon.

But we all know that corporate governance on AIM is not what it should be and this is the risk you take when investing in companies like Getbusy.

[hastings] 01/3/2023 13:22

I can certainly understand what you say, but I'll not be complaining if they achieve what they believe can be delivered. I've encountered similar concerns when Directors such as at SDI have sold in big quantities, but the same logic applies for me.I'm far more interested in the business continuing traction and feel FinnCap, perhaps rightly has set expectations on the very conservative side.No doubt Institutional holders who supported the plan you refer to, will be ready to buy further share's following the retrace!

[the ghost who walks] 01/3/2023 13:19

Market hasn't liked this.

[jane deer] 01/3/2023 13:10

Anyone got any view on the Incentivisation Plan, included in today’s announcement? I like the company and clearly if any of the targets are achieved, shareholders will do well - but the potential rewards for Rabie and Haworth seem too high to me. Also it is galling to see the NOMAD (Finncap) conclude the plan is fair a mere four days after being appointed NOMAD. How independent can this be?

Also I am not a fan of seeing NEDs (Clive Rabie) make loan agreements to the company.

Prospects for the company look good but the corporate governance issues need looking at.

[pugugly] 01/3/2023 08:42

Virtually no market movement - so far.

[pugugly] 01/3/2023 07:32

FinnCap target price 160p but profits and any dividends kicked down the road. wait and see job (imo)

[hastings] 01/3/2023 07:19

I think the results are very positive and given "a robust January" the trend is continuing. The strategy of ploughing the money back in and driving the growth will deliver and being very sticky and superb recurring revenue I'll add if it retraces at all. Speaking with management this morning, so I'll get a bit more no doubt!

[pugugly] 01/3/2023 07:15

Great improvement. Adjusted EBITDA positive - £692K Cash £2,972 up from £2,670 . 11%
but still loss making - Will have to wait until market opens however possibly still jam tomorrow but I like the increase in cash.

"Increased cash of £3.0m (2021: £2.7m) validates self-funding model, underpinned by new committed £2.0m facility, which remains entirely undrawn"

[boozey] 28/2/2023 17:00

yes the Finncap announcement was made 5 days before results. No coincidence, they will want to impress to justify their fee..

[the ghost who walks] 28/2/2023 13:34

Interested to hear from mgt.

[hastings] 28/2/2023 12:47

Well, they have already said that they would be slightly ahead, so I can't see it will be any different.Be interesting to see what FinnCap put out in conjunction with the results!

[pugugly] 28/2/2023 11:04

Unless they exceed expectations might well fall as this seems to be the general trend at the moment.. Move on tomorrow and hope it does not do a Macbeth on holders, "“Tomorrow, and tomorrow, and tomorrow and all our yesterdays have lighted us the way to dusty loss"