Syqic Share Discussion Threads

[androyd] 25/2/2015 16:16

The reason for this drop imo, is the last RNS, it's triggered placing rumours and spooked the market/investors.

[mikeja] 19/2/2015 09:52

I would add that Matt Butlin has a very good grasp of the business.To switch Nomads presupposes that the other possibilities would be better which is unlikely given the dwindling number of Nomads for AIM stocks.

[mikeja] 19/2/2015 08:19

Will certainly bring that up with Matt when he gets back Masurenguy.The hassle of switching Nomads is probably too much to ask and,given recent upheavals in other AIM stocks,may send wrong message until SYQ are rather larger.

[mikeja] 19/2/2015 06:16

Have done some further homework on the cash shortfall.I reckon some 650k is late payments by PTNP,the 570k mentioned only includes part of June.The original figs were including the whole of June.This still gives a shortfall of some 500k which I imagine must have been extra,mainly one off costs on revamping maaduu.Indeed this would tie in with eps of only 8p a share.Given the increase in revenue of 1.2m over estimates this should have led to an increase in EBITDA of at least 500k as extra revenue drops almost entirely into profit.Netting the two figures off seems to explain both the cash shortfall and the lack of increase in eps.Assuming the bulk of the extra spend is non recurring this should give a further boost to 2015 eps.
One problem is that the Allenby analyst,Matt Butlin,is on holiday this week so a note may not be due until next week and also explains the cackhanded nature of the RNS.It would have been much better to have issued the RNS next week,particularly since there was no special urgency for it anyway.
Incidentally I am expecting final figures rather sooner than last year.

[adamb1978] 18/2/2015 19:17

Find it highly unlikely that they'd issue a clarification - usually only happens if something is factually wrong in an announcement or if there's a typo, rather than an announcement simply being poorly drafted. The best thing they could do from here is to try to get their prelims out quicker (why any company should need 4.5 months is beyond me) and make sure that the messages are best conveyed in them.

[daz] 18/2/2015 15:59

Yes, thanks Mike, I thought that was the case but thanks for confirming.

[mikeja] 18/2/2015 15:17

Had a chat with Jamal and suggested a clarification of update which may or may not happen.The problem lies with Allenby not the company.advertising revenue will get paid much more quickly,45-60 days.

[imranawan] 18/2/2015 13:32

Agreed AdamB1978! Maybe you should forward on the RNS to Allenby Capital, as their effort this morning was poor.

[adamb1978] 18/2/2015 13:30

This RNS would have reassured the market and led to the share price increasing not decreasing had it been properly drafted. It should have been very simple:

"- turnover and profits in line with expectations
- collection of debtors on track and, whilst total debtors have increased, debtor days have fallen
- cash of £200k as at Dec-14 though back up to £800k at Jan-15
- outlook still positive"

ENDS

Share price increases 10%!

[yump] 18/2/2015 13:07

Hopefully everything AIM and 'foreign' won't be tarnished with the same brush for ever and the companies that are run in a straightforward way will get a reasonable rating.

Just running an AIM company straightforwardly should get a premium rating anyway - there's plenty of UK AIM's that have either messed up or shafted shareholders.

[mikeja] 18/2/2015 11:04

Just tore a strip off the person at Allenby who passed the RNS.Expect a note from them later.My own reading of the conversation is that we may expect eps somewhat above Allenby's earlier estimate,maybe around 8.0 to 8.2.

[mikeja] 18/2/2015 10:10

This share price is completely nuts,just picked up 10k at 46.7.What is happening is that PTNP is picking up its rate of payment whilst the new business invoices are only just beginning to be paid.Admittedly the RNS was a proper mess,emphasising the cash flow hiatus,not clarifying payments since year end etc.Currently they are on a p/e of 7 for 2014 with a considerable jump in eps coming for 2015.

[adamb1978] 18/2/2015 09:59

Would have been good if they could have been clearer on the debtors. They said: "Whilst payment terms from this customer have improved during 2014, overall trade debtor balances have increased during the period, reflecting the Group's higher levels of revenue."

People will just read that debtors have increased - would have been better had they said that debtor days had gone down (assuming true)....its pretty logical that debtors might go up with most businesses when turnover increases 130%!!

[aishah] 18/2/2015 09:40

Here's the outlook:

The Directors anticipate that the Group's investment into premium content licensing and the cool2vu platform provides the Company with a strong value proposition and global scalability moving into 2015. Revenue performance in January 2015 continued to remain strong and the Group anticipates this performance to continue throughout 2015.

The cool2vu platform has already begun generating advertising revenues, a major development in the Group's desire to expand its revenue sources. Brands such as Sony, the British Council, Mamee Foods and the Star Radio Group amongst other advertisers have already committed budgets to cool2vu. SyQic is therefore expecting a positive year in terms of financial and operational progress as subscription growth from its incumbent services with its Telco partners continues as well.

The Group's core Telco brand, Yoomob, has been established in Myanmar, a country which is experiencing a rapid proliferation of smartphones following industry deregulation, and, as announced on 3 December 2014, agreements have been reached with Telenor and Oredoo, the two largest telecoms companies in the country. SyQic's Telco partnership with Globe in the UK, details of which were announced on 14 January 2015 is also expected to be a key driver in growing the Group's Telco based service in Europe.

On the OTT front, the Directors consider that SyQic's partnership with Viki, further details of which were announced on 3 February 2015, will enable the Company to expand into multiple new territories without the need to obtain new content licenses.

What's there not to like? Market will re-rate in due course imo.

[gocanes] 18/2/2015 09:36

The revenue performance is great. Shame about the cash figure being below expectations but with the £200k at the year end and £600k received from PTNP in January, it is not as if cash isn't coming in. Encouraging to see that the 2014 payments continue to be paid down and don't forget that the 2012 and 2013 payments are continuing so the cash figure is probably more than £800k.

Allenby's PAT forecast is £1.8m, some 215% up from 2013, and the announcement has confirmed that SyQic is in line with that

[aishah] 18/2/2015 09:22

I've been adding today. Good progress made since AIM listing but well below float price.

[masurenguy] 18/2/2015 09:14

The issue that has spooked a few investors to sell is cash, always a potential Achilles heel in small caps and especially those trading in the Far East. However, they have received a further £600K from PTNP since the year end and that should reduce any risk of further dilution from a funding placement.

They are achieving excellent levels of sales growth and the really key factor going forward will be to carefully manage and nurture their cash position. I like the fact that they expense rather than capitalise their acquisition costs since that provides a clearer P & L performance picture although of course it has absolutely no impact whatsoever on their cash position.

Trading volume this morning has not been heavy - there have only been 4 trading days over the past 4 months where over 100,000 shares have changed hands in a day. The highest daily volume over that period was just over two weeks ago, at circa 550K, following the announcement of the Viki deal. This mornings volume is just over 100K so far in the first hour and I will be very surprised if we get even close to 500K by the end of today's trading session.

There is certainly no reasons to sell on the back of todays year end trading update and I will continue to hold here with an optimistic view in relation to forward prospects.

[foxman14] 18/2/2015 08:50

MM's haven't moved it as it opened within a penny of it's closing price so they found it difficult to call this morning. There are just slightly more 'fearful' investors at the moment than 'greedy' ones hence the fall.

[yump] 18/2/2015 08:36

I don't think many investors have done much its half an hour after open - it only takes a few trades to move the price and the mm's don't go reading detail in small stocks, they just respond to the few investors that trade.

[foxman14] 18/2/2015 08:30

I believe share price has fallen because trade debtors increasing and below expectations on cash in hand. Investors are anticipating another cash call or perhaps something worse! I thought long and hard whether to sell first thing on the basis I may have been able to buy in at a cheaper price at a later date. In the end I decided to stick!

[mikeja] 18/2/2015 08:23

Have spoken to Allenby,they have had some 600k pounds from PTNP since the year end.All maaduu expenses have been expensed and not capitalised,unlike other similar cos.

[daz] 18/2/2015 08:21

Adam,

Allenby were forecasting operating profit (EBIT) of £1.8m.

More pertinently, they were forecasting cash of £1.3m, so even allowing for the post year end payment, £0.5m is a long way short of that and would explain the mark down. Hopefully Allenby will put out an update later today with further explanation.

[imranawan] 18/2/2015 08:11

I find it strange the share price has fallen so much this morning based on decent results...

[imranawan] 18/2/2015 08:09

Operating profit should be £1.86m and EPS 7.47