Syqic Share Discussion Threads

[yump] 21/4/2016 07:39

If I was running an international operation that depended on 2 customers who early on started to pay very late and potentially put my business at risk, I would not have been continually expanding the business, requiring more cash.

In fact, I would not have even gone into business with them because I would have done due diligence and included very late payment in my plans for the company as they must have a record of late payment, they can't have just singled out my company surely ?

[mikeja] 21/4/2016 07:29

Incidentally the fact that the company has an overdraft does not make them insolvent,technically or otherwise. The trade debtors are part of the assets,even if the auditors decided that a 50% provision is necessary that is nowhere close to insolvency.

[mikeh30] 21/4/2016 07:24

What are the rules on Hassim buying in the open market to increase his stake?

[mikeja] 21/4/2016 07:13

Frankly I think the shares should have remained suspended until the price of the bid is known,otherwise a false market is being created.

[bad gateway] 21/4/2016 05:46

Not sure about "shenanigans" yump as its their 2 main customers not paying on time thats hurt this ones shares. Yoomob is still going great guns expanding all over the place with a different payment method and even with the nonpayers they're only burning through 150k a month with a £3m bank facility in place.
SP will do what it does 8am but if it does drop I'll be a buyer today as I don't believe the committee will let him buy as cheaply as you seem to.

[loverat] 20/4/2016 22:54

That is probably right - about the assets and cash position.

But what makes you think the market will be as calm, rational and collective as you and open the share price lower. AIM is a gamblers market.

Perhaps stick to financial analysis. share price action will be determined by supply and demand.

Could go either way - if we really want to be honest.

[dibs61] 20/4/2016 22:32

With the exception of yump there is an almost unbelievable level of delusion on this board. Look at the trading statement. The company have no cash and no assets. They will be technically insolvent after the provisions are made. The CEO wants to take it private clearly. The share price could well take a hammering tomorrow. It certainly won't be going up!

[yump] 20/4/2016 22:07

This is pretty straightforward, the usual shenanigans, which is my best guess. I've learnt to be very, very cynical.

- Auditors raise questions about provisions last year.
- Receiveables have got worse and are dire.
- There's no cash.
- There's a risk of trading while insolvent when provisions are included (which will be big)
- Keep it all 'safe' and legal by taking private for a snip.
- Let the growth and change of getting paid work for a few years.
- Refloat somewhere with the 'new' positive story.

I can't think of anything worse, so anything better is a positive.

[ileeman] 20/4/2016 21:29

At what price was he buying his shares at previously?

[mikeh30] 20/4/2016 21:28

Could be more than 1 bid on the table as far as we know

[the oak tree] 20/4/2016 21:26

OK if thats true then yes that makes sense. Plus those that want to take over a company put out reverse spin hence perhaps why its been going lower for a while.

As others say interesting times ahead.

[mikeh30] 20/4/2016 21:10

He sits at 32.86%.Correct me if I'm wrong but doesn't a mandatory bid come into play at over 33%? Would have given his game away rallying the shares to a higher price?

[the oak tree] 20/4/2016 21:05

I suppose I'm surprsied he hasn't increased his stake recently if he's of the opinion its worth a buy out. The shares have been sliding for some time and am sure he could have got quite a few. Then go public and get the rest.

What do others think?

[mikeja] 20/4/2016 20:57

He already holds 9m shares so is only coughing up for 18m. Last fundraising was at 50p

[ileeman] 20/4/2016 20:44

I note cap is only £4mil

[ileeman] 20/4/2016 20:43

What price do you think they will want to pay for the company? (if it happens)

Financial report looks like a decent company all be it low on cash.

[mikeja] 20/4/2016 20:39

Should also say that this year profits will benefit from an exchange credit of at least £1 million.

[qs99] 20/4/2016 20:36

and could CEO know more about "recoverables" and relationships so that post any takeover he does a deal to take X in the £ to get at least some cash in? all interesting permeables, just hope NEDs act appropriately to get GV for all shareholders

[mikeja] 20/4/2016 20:33

Sorry,rereading the statement Utilico is not involved.They must have paid an average of at least 40p a share.

[mikeja] 20/4/2016 20:30

Presumably Jamal,probably with earlier partners or even utilico, is taking the company private to inject £1 m to give access to the £3m that the bank is offering. Trade receivables are 50p a share but of course that is before writing anything off.Presumably there is a contract in place so most of it should be recoverable eventually.

[qs99] 20/4/2016 19:44

Masurenguy you are correct IMO, but that is slight pedantry, the CEO has taken himself "offside" and with a p/e house have stated they want to make an offer....IMO that is the correct first step, brings it out in the open, who knows who else may be interested, will be fascinating where the shares go tomorrow....

[masurenguy] 20/4/2016 19:20

Statement re Possible Offer - "announces that it is in discussions with Jamal Hassim, Chief Executive of SyQic, and MMV Investments (HK) Limited, a company owned by Johan Robb, (together "Bidco"), in connection with a possible offer for the whole of the issued share capital of the Company....The Independent Board are in discussions with Bidco but there can be no certainty that a formal offer will be made for the Company or the terms on which such an offer may be made."

So far no offer has been made. It would appear that some people just do not understand plain English.

[mikeh30] 20/4/2016 18:53

"Due to depreciation and amortisation being lower than expected, the profit before tax for the year is expected to be materially ahead of market expectations"Can't complain with that bit of the trading statement either. Agree the receivables are getting out of hand.Offer for the company has got to be at a substantial premium to 18p

[androyd] 20/4/2016 18:49

I'd settle for that mike!