Microsalt Share Discussion Threads

[purchaseatthetop] 01/6/2024 08:09

Kiplig.
There are many micro salts variations already on the market. Yes Microsalt is the smallest but merely being small does not make it a great product.

2023 was an utter disaster with revenues dropping from 2022 and with gross margin going negative.
2024 has been stated in the accounts:
“2024 set to be a key year where MicroSalt is expected to receive recurring commercial volume purchase orders for its bulk product, whilst acknowledging the rollout of MicroSalt across new and/or further B2B product lines has been slower than hoped during the current year to date”

What does “slower than hoped” mean? If it means sales have dropped even further below 2023 levels then the absence of a USP becomes clear. Remember that TEK had been trying to monetise this since 2016 snd nobody was interested. Wonder why.

[kiplig] 01/6/2024 05:44

JakNife,It is clear we fundamentally disagree on industry standard valuation methodologies for growth companies. Your techniques are valid for valuation of mature businesses where revenue and earnings growth are the primary measurement tool. But I have no doubt you know this - you're just having fun spooking the less experienced in an attempt to profit.What we need to loo at here is the probability of them proving up the commerciality of their asset. That isn't revenue or growth, that's inking a supply deal with a credible end user. Such as a Fortune 500 company. It is after that point you start to measure revenue growth. But you know that already.So agree - let's review in 6 months. They may or may not be successful - none of us can know - but if it is true that they are trialling in several of the largest snack food companies in the world, then what is clear is that there is a genuine possibility that this just might be a great product.

[jaknife] 31/5/2024 16:41

kiplig,

We disagree on numerous issues relating to SALT but I am well aware that many investors need to see "things" happen. Which is why I suggest that we discuss this again in six months, when the next results are out. I forecast:

* insignificant growth
* immaterial revenue
* significant admin costs making the post-tax loss material
* an increased share count, probably from the exercise of share warrants
* probably enough cash, from the exercise of those share warrants, for there to be enough to continue as a going concern for the next twelves months
* net assets in the region of £2m
* a lower share price, in the ball park of 60p, possibly lower if the convertible loan has begun to be converted to shares (it's an "at the market" convertible rather than a fixed price one)

You don't have to make a forecast if you don't want to but I promise that if you take detailed notes, including of forecasts, then it will be hugely beneficial to your investment journey in the long run.

JakNife

[pugugly] 31/5/2024 15:59

kiping:_ Fair point but what percentage of start-ups fail on the way and never make it to profitability with a value greater than the book cost of the investments made into them, adjusted for inflation?

[kiplig] 31/5/2024 15:50

JakNife. I have zero doubt you're smart enough to know that you don't value early stage growth companies on revenue. You know this, but are using it as a tool to spook the less sophisticated investors here.When an oil company is developing a huge asset, they prove up value by de-risking, defining resources and reserves. All this is pre-revenue, and incurs costs which are expensed. This is normal. SALT we're crystal clear in stating that they are focusing on landing one of these Fortune 500 companies that they are isndoscussions/trials with. This is pre revenue and incurs cost. But what if they land a contract to supply one of these customers, which is entirely possible.

[up to the moon and back] 31/5/2024 12:57

Jaknive = very negative

[oliversanvil] 30/5/2024 16:56

Daft--A deal could come in tomorrow!

[jaknife] 30/5/2024 16:43

kipling,

Like I say, let’s discuss again in six months when there are finals to read.

The art of investing is to be able to forecast what those results will look like and from where I’m sitting SALT’s full-year numbers will look dreadful. Have you even tried to make a forecast?

JakNife

[kiplig] 30/5/2024 16:33

JakNife, I don't want to give this oxygen, but you cannot have a clue about what SALT is achieving, and neither can I or anyone else. But judging an early stage product development company (like SALT or a Uranium explorer or an early stage AI or biotech) is silly.I looked at your posts and they are the same for every other company - slander and talking them down. If you don't like the company or TEK, then go ahead and short them. You'll be right or you'll be wrong. Only time can tell, but kindly don't deliberately write comments trying to influence or spook others.

[jaknife] 30/5/2024 14:41

Kipling,

I am afraid that TEK are not a business to be trusted, you only need to look at their floats of Lucyd and Belluscura to identify their Modus Operandi. Both were floated with hype and fanfare only to then materially disappoint. SALT will be number three to fit into this pattern.

Let’s talk again in six months when the finals come out.

JakNife

[papillon] 30/5/2024 13:49

Excellent post, JakNife.

[kiplig] 30/5/2024 12:06

JakNife. You have a history of similar posts for many companies. That's fine, and you'd trading strategy is clearly to be short, and I have no problem with this. However, trying to extrapolate these financials for a company like SALT which is in the early commercialisation phase is simply incorrect. They have stated they are in trials with global major companies - these generate no revenues in testing phase - exactly like a drug discovery company, or indeed a resource company proving up a reserve - but if successful then the potential revenues are truly enormous. Let's wait and see. Re TEK, they are in 12 month escrow and another 12mth orderly market agreement. Their business model is to fund early stage projects and then to methodically release capital in stages - this is the industry standard private equity model. Nothing dubious, completely normal.

[eagle eye] 30/5/2024 10:04

JakNife,
Good post.
The truth hurts, so many investors won't want to know that.

[pugugly] 30/5/2024 09:55

Nife - Implications for TEK? Cannot be good (imo)

[jaknife] 30/5/2024 09:52

The numbers are absolutely awful

P&L
* Revenue down 10% - not a growth company!
* cost of sales exceed revenue so product is being sold at a loss!
* admin expenses are £3.3m, almost six times revenue!
* total gross loss of £3.5m

Balance Sheet
* Negative net assets of -£2m!
* Debt of £2.5m and just £117k of cash
* Note that the debt is a death spiral convertible from TEK Capital
* However, these numbers are as at 31 December, the IPO post period end raised £3.1m (at 43p a share)
* But that still means pro-forma year-end net assets of just £1.1m and yet, at the current 87.5p, the market cap is £37.8m (43.2m shares)!

Cash Flow
* Dire!

Conclusion
SELL!
* The numbers are terrible and there's nothing to suggest that there has been, or will be, any sort of material improvement in them
* There's a huge potential hangover of shares:
(a) they only have adequate funds for 2024 at most and so will need to place
(b) the loan note is convertible at the current market price - TEK Capital will need to sell shares to get their money back from the loan note
(c) TEK Capital have shares themselves that they need to sell
(d) and don't forget that there are warrants out there as well
* The next six months should see a snow-storm of shares being issued

JakNife

[purchaseatthetop] 30/5/2024 08:59

Horrible figures. Lower revenue than 2022 snd selling at gross margin loss now. Yuk.

2024 not looking any better
“Current trading and outlook

MicroSalt made significant progress in 2023, the rollout of MicroSalt across new and/or further product lines across Customers A, B, C and D has been slower than hoped during 2024 so far. “

[yorek] 30/5/2024 08:52

I would like to support this, but the valuation, product and price mean it's just not viable for me.It's 60% sodium chloride + 40% maltodextrin. The latter being very expensive and probably making it an ultra processed food. I believe the price is circa 6x the cost of table salt, and it's very flighty, like icing sugar, so it's not very user friendly as a table condiment in my opinion. From a public health perspective, I hope this gets traction, but cost and ease of use may be barriers.There's no doubting the strength of the marketing campaign behind it though.Good luck to all.

[buywell3] 30/5/2024 08:25

MicroSalt results for year ending 31st December 2023 are out today


The numbers have been known for months

Hence much of the wording in these results could have been written months ago --- however

The following statements have been imo written recently :-

Rick Guiney, CEO of MicroSalt commented:


"This has been a transformational year for MicroSalt and with continued evidence of the timeliness and essential nature of its products as it emerged as a recognised and preferred choice for product reformulation globally.
Our geographic outreach is expanding all the time, now with inroads into Asia, Australia, South Africa, the UK, Germany, Canada and Latin America with a resultant boost to our sales pipeline.
Furthermore, our consumer products including SaltMe crisps and MicroSalt shakers have successfully provided a low-sodium alternative for households worldwide, cementing our brand as an essential, generation-spanning choice.

I am delighted that we can look ahead with the utmost confidence and in eager anticipation of further successes awaiting us".


Outlook


We are excited about 2024 as the year where we see MicroSalt receiving recurring commercial volume purchase orders for its bulk product.
The Group currently has various significant volume customer prospects at advanced stages with a range of national and multi-national companies.
The nature and size of these existing and potential customers businesses is that once MicroSalt has been nominated as a supplier on one product line, we expect further nominations across multiple other, and likely much larger product lines of that customer.


We also anticipate more investment into growth of our MicroSalt® shakers and its establishment as the generational salt used at home.


Judith Batchelar

Chair

[pugugly] 30/5/2024 08:21

S01> How ill is the patient !!!!!!!!!!!!!!????????????????

Congrats - patient has revered and now Patent. !!

[showme01] 30/5/2024 08:15

They have only recently received the US patent. Give it time imo.

[mr.oz] 30/5/2024 08:13

No mention of UK supermarkets as far as I can see

[davethechef] 30/5/2024 07:55

Not ideal, hefty net loss but(increased loss was expected) however what I'm too impressed is the " rollout of the Microsalt across new and /or further B2B product lines has been slower than expected than hoped during the current year to date"
It seems uptake is taking longer than expected. Not sure how long it'll take to hear of big orders coming through now then; later in the year?