Loopup Share Discussion Threads

[bamboo2] 27/1/2017 10:51

Still more to go for here...

[rocket fuel] 27/1/2017 09:12

I like this one.

[jimbojet17] 27/1/2017 03:43

Ah yeh Timbo, my mistake. Thanks

[timbo003] 27/1/2017 02:13

Thanks for that MartyWidget

>>>>>jimbojet, I think this was a Loopup only Capital day. You might be thinking of this meeting which will be held next Tuesday where both Cloudcall and Loopup are due to attend:


I will attend and visit both of their stands and see their presentations, so I will be reporting back on both of them next week (Wednesday probably). Furthermore Videos and slide decks from the presentations are generally available soon after these Islington meetings, at least they have been for the last couple of years.

[jimbojet17] 26/1/2017 23:00

Marty, that's for sharing. I don't suppose you have a copy of the CloudCall deck do you?

[martywidget] 26/1/2017 14:36

Here is the pdf presentation from yesterdays Capital Markets Day:



Here is the pdf presentation from yesterdays Capital Markets Day:

[bamboo2] 25/1/2017 14:28

None on-line now, have to order

[bamboo2] 25/1/2017 14:22

This pole should top out around 196. :) [h/s calc]

At 213 need to watch for HTF pattern

[paulypilot] 24/1/2017 22:10

opodio,

I take your point, but growth companies usually look very expensive in their early stages.

The key point with LOOP is to focus on organic growth (c. 35% p.a. compound, with little marketing), 75% gross margin, and then see how the numbers look a few years forward. That's when the penny drops!

Regards, Paul.

[bamboo2] 23/1/2017 09:32

Small starter position taken this morning.

[opodio] 19/1/2017 22:26

0 0
Diluted earnings per share if 0.2p


yes, 0.2p

one tenth of 2p

[luckymouse] 19/1/2017 20:27

Alan Sugar once put it very succinctly in his own street sort of way - he said 'it has to become like a plague'. I think this product may have it - you only have to experience it once and you instantly get the superior new paradigm.

The question for me is - with the new marketing machine - can they get it into enough new hands fast enough for it to go viral? If they can it will absolutely fly. So it depends if they can hit an ace with the marketing & we see evidence of that!

[woodcutter] 19/1/2017 18:40

By my reckoning it's costing around £10m+ to run the business, unless i've missed something, and if there's only £2.2m in cash now as opposed to £2.7m after the IPO that's possibly an adjustment in working capital or possibly the difference between amortised cost and capitalised cost or even additional equipment to serve the business growth. Nevertheless i'm still wary of the cash position.

If it's as good as you say it is then i can be patient and wait for some real H2 figures, that may be too late but after the recent rise today I'm not inclined to chase it.

Humble pie...................i hadn't noticed the admission document was only a month or so before the H1 results, that doesn't detract from my feelings on the cash position though.

woody

[paulypilot] 19/1/2017 18:12

Hi Woodcutter,

No probs. The update yesterday confirmed the net cash position as follows;

"The Group's net cash position as at 31 December 2016 was £2.2 million compared with £2.7 million immediately after its IPO in August."

So cash position looks fine to me. I have a feeling that there might still be some shareholder loans outstanding, but can't remember where I got that from. i.e. it might have (say) £5.2m cash, and £3.0m debt = £2.2m net cash, for the sake of argument. I possibly read it in the Admission Document, but trouble is have been researching so many companies lately that my mind turns to mush after a while lol!

So there shouldn't be much in the way of interest costs in future.

This stock is all about operational gearing. It's consistently grown by c.35% p.a. for quite a few years, when a private company, and that was with very little marketing. The product sells itself basically, by word of mouth, recommendation, etc. It's a very, very good product, that once you've used it, is a no-brainer I think. I set up a conf call this morning from my Google Calendar, with just a few clicks, then LoopUp actually dials everyone to get them onto the call. So no dialling in, no passcodes, etc. It really is a wonderful product.

So I reckon revenues should be very sticky - indeed churn is negative - i.e. existing users spend more over time, which more than offsets customers which stop using it.

A very interesting little company, on the cusp of potentially very good profitability, in my view. It's global too remember - biggest revenues are split roughly equally between UK & USA.

My main worry is if another company launches a competing product that does the same thing, but is cheaper. That could lead to margins eroding. But for now they're in a sweetspot, and barely scratched the surface of their potential market.

Regards, Paul.

[woodcutter] 19/1/2017 18:03

Paul missed your post while constructing my last post. provided there's sufficient cash then i'd agree it looks promising particularly if the operational gearing figures remain intact.

Be mindful only £2.7m of net cash post IPO so it still looks a bit vulnerable to me.

wc

[woodcutter] 19/1/2017 17:58

some further numbers to put things in perspective.

for H2 revenue grew at roughly 40% from £9.2m to £12.8m
admin costs at H1 grew from £3091K to £3532K growth of only 14.2%
assuming these metrics remain for H2
gross profit £10.3m
admin costs around £7.5m (6505k @14%)
so operating profit of £2.8m

finance costs around £800K
leaves £2m clear before tax

now the question is how much amortisation and capitalised spend!

If they can keep the admin costs at no more than 14% uplift then it's a very well operationally geared business the real dilemma is can it generate enough cash to keep going in the short term and my feelings are still very unlikely.

wc

[tattooed93] 19/1/2017 17:43

The incoming Trump administration has given Silicon Valley a headache, mainly due to potential plans to penalize companies that manufacture goods in China. But not all of Trump's proposed policies may have a harmful effect on the tech sector.

[tattooed93] 19/1/2017 17:43

The incoming Trump administration has given Silicon Valley a headache, mainly due to potential plans to penalize companies that manufacture goods in China. But not all of Trump's proposed policies may have a harmful effect on the tech sector.

[paulypilot] 19/1/2017 17:38

Woody,

The IPO raised fresh money, which was not reflected in the interim accounts, which are pre-IPO. So the cash position is now fine.

The upside here is that revenues are growing by about 35% p.a., on 75% margins. So when you roll it forward a couple of years, it will be a cash cow.

The product is great - I've used it, on the free trial, and can see why customers love it - it's a much better way of doing conference calls.

I'm visiting the company next week, so will report back with my impressions.

You're right about the capitalised dev spend. That shouldn't matter in the future though, due to expanding recurring revenues, which should move it nicely into profit in due course.

Growth companies aren't easy to invest in, as they always look expensive when still loss-making or early stage profits. The key is to roll it forwards. That's what people are buying into.

Regards, Paul (long LOOP).

[woodcutter] 19/1/2017 17:20

This looks like a bunch of academic harvard wide boys who are going to take their share holders to the cleaners. Have any of you guys who are invested looped (sorry looked)at their accounts in any detail?

They're not making any profits at all, indeed they're burning cash at present
look at the c(r)ash flow statement from their H1 results

They amortised £644K
And capitalised costs of £1230K
their operating profits were £520K
If they'd have written off just £586K of their capitalised costs and only capitalised £644K same as they amortised so that it all balanced then they'd have made a loss of (586-520) £66K

From H1 accounts
They had £1086K cash @ H1 because they borrowed a further £778K and now cash is £2200K, how much more have they borrowed.
their borrowings are around £10m
their costs of sales and admin are around £5m for H1 only
on the plus side they have a difference of around £1500k between trade receivables and creditors, hardly going to help much.

The trading statement makes great play of their EBITDA but they fail to mention how much of their costs are capitalised

The gross margin in the trading statement is quoted at 76% @ H1 it was 80%

A silicon valley type startup on the ever forgiving AIM

Ah well a fool and his money! i look forward to a further placing.

woody

[sharesevents] 19/1/2017 15:10

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The other companies also presenting Jaywing, RedstoneConnect, Blancco Technology Group, CloudCall, Frontier IP Group, CyanConnode, Bango, LoopUp, CityFibre, TP Group, AJ Bell, ANGLE, Legal & General UK Alpha Trust, Defenx, Instem, WANdisco, Collagen Solutions, Avacta, One pm Finance, Cenkos Securities and Mirada.

[jimbojet17] 19/1/2017 13:50

Lovey move today! :-)

[timbo003] 18/1/2017 19:51

There is a new article on Proactiveinvestor which includes broker comments and also a new phone interview with joint CEO Steve Flavell: