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[quazie12] 13/11/2023 17:51

Blah blah blah

[pinkfoot2] 13/11/2023 17:45

No it didn’t-there are 15/16 separate processes in the product-glitches rather than anything major but I know from personal experience that even a small glitch can cause a problem.

All the customers are supportive, collaborative and intact-I’m very confident now and with the financial issues now sorted, we can move on.FD is very strong, and we push on

[evilblues] 13/11/2023 17:45

40% dilution should demand a change at the top, not their nose in the trough. Just when you'd thought you'd picked a company not run by inept, greedy cowboys...

[bagpuss67] 13/11/2023 17:28

They now say in the detail to the raise RNS "potential" single points of failure rather than single points of failure in the trading update..

Which is it? Did loose wording impact the raise price?

[pinkfoot2] 13/11/2023 17:20

Obviously couldn’t say much until now but I’m super confident now-and I’ve taken another big slug.Raising this cash answers all the questions-fill your boots guys

[sunshine today] 13/11/2023 17:15

Saved , but at a price.

[fevertreeman] 13/11/2023 17:02

No one in their right mind would press the green light on another order, if they then have to explain to their board and bosses that the company doesnt have the requisite working capital to deliver the products, and keep the lights on. This is an unmitigated mess thanks to appalling, simply appalling management and oversight by everyone concerned.

[amanitaangelicus] 13/11/2023 16:54

Bones - it's called the Aim Circus' rule. Been accurate for a long time.

[amt] 13/11/2023 16:53

Back of envelope calculation
Costs per month 1 million
GP per month 0.6 million based on 1m sales per month.
Cash outflow 0.4 m per month.
Assume they have 2.0m now so would run out by end of March.
However if they start achieving sales of 2m in January then they would have about 1 million at end of January.
However to build up a buffer stock and to ensure they have at least 2m in the bank at worst, they would need to raise about 3M.
They do need cash for cap ex of course.

[bones] 13/11/2023 15:11

Whatever amount you think an AIM company might need, you should always double it at least. Standard rule :)

[supernumerary] 13/11/2023 15:10

Thanks for the warning, but not being able to take part in another placing is absolutely the least of my worries here. :¬(

[bagpuss67] 13/11/2023 15:05

Better keep our eyes peeled for the raise RNS. There can be a very short window in which to participate as a PI

[amt] 13/11/2023 15:05

I don't think they need anything like that for working capital. Cash burn about half million per month

[bones] 13/11/2023 14:57

Amt, if you read my post 8318, I reckoned as much as £15M to be really safe and clear to the end of 2024. Remember the capital expenditure loan is not to be used for working capital. £3M would only help for a couple of months. I can’t see profitability before mid-2024. Optimism doesn’t work out with this company!

When I say £15M, that would be very comfortable but remember they managed to drop £10M in six months in H1/23. Any more mishaps in production will be expensive.

[bones] 13/11/2023 14:44

Just to be clear, I am hoping it all goes well. I have a substantial holding here :O

[amt] 13/11/2023 14:43

How much is decent amount Bones, 3m ?

[bones] 13/11/2023 14:35

The hope this year has always been that the production could make profitability before the cash ran out. That was clearly becoming a squeeze months ago when they said they were down to £4.5M in June but they continued to guide the brokers to a certain level of revenue and a cash balance just about positive by December when they said they should reach profitability.

It has taken a new COO and CFO to come in with a blank sheet of paper and fresh eyes and really rummage through the cupboards. The hope of making it to profitability without further investment was found not to be possible. There were just too many things to get right in the major ramp up.

In the last update, they clearly stated that cash for working capital had to be found and hence the market took refuge. Short term cash is needed so a sizeable placing seems inevitable. They need a decent amount to cover themselves for at least a year to avoid any threat of a going concern qualification from the auditors.

[amt] 13/11/2023 14:20

Perhaps the NEDS thought the massive sales order would outweigh the manufacturing hiccup.
If they could get another big order that would help. We are expecting further orders.

[amanitaangelicus] 13/11/2023 14:15

Problem now is confidence. Confidence in the board, confidence in ironing out manufacturing hiccoughs, confidence that sales wont be cancelled, confidence they.ll be no major credit squeeze, confidence in the manufacturing personnel to sort things out. Jury well and truly out. Placing inbound - if they can get one away. This sort of aim circus is repeated up and down the land. It.s a money making machine for the ceo.s while they can get away with it.Why did the neds etc pump money in? Were production probs hidden from them? Odd ...

[pinkfoot2] 13/11/2023 14:15

I’m sticking with it-great product and huge market.Time to hold your nerve