T42 Iot Tracking Solutions Share Discussion Threads

[nig1954] 14/9/2022 18:44

I’m not in disagreement with anything that has been posted in connection with the cash flow position but if there was still an issue with the banking covenants then I would have expected to have seen that reported in the Notes to the Accounts. The absence of any such comment leaves me to believe that particular issue has now been resolved.
I wasn’t expecting to see anything beneficial arising from recent RNS’s because it has been reported on several occasions that we would have to wait until H2 to see positive cash flows being generated from the income arising from those contracts.
The final accounts are going to be critical because by then we should be seeing what positive effects those contracts are having and based on the comments in the Chairman’s Statement those opportunities are expected to bear fruit in H2 of this year.
A little surprised at Bap’s comments today given his recent stance on his shareholding and past comments he’s made on LinkedIn. However, I respect his decision but still surprised he’s liquidated his entire shareholding given his recent stance on his position

[smithie6] 14/9/2022 13:52

Whether resolved or not resolved, the financial situation is not pretty imo.

As I mentioned the amount of cash held versus the current debt & monthly cash consumption, is not pretty, imo.

[nick2412] 14/9/2022 13:19

Smithie, to be fair, the breach isn't mentioned in the results today in any of the notes, so I expect that has been resolved. That said, they should have clarified that a revised arrangement has been sorted. It's a sizeable gamble, however, until they sort the financials out.

[smithie6] 14/9/2022 12:46

Nick2412, posted relevant info about bank loan covenants

Which is worth highlighting/pasting I think.

"It's a fact that TRAC was in breach of their banking covenant (it was in the previous results announcement notes). It's also a fact that I received an email, with the date as stated in my post, from the CFO saying they remained in breach but were discussing a solution. I assume that's not the case anymore as TRAC haven't referenced it. I suggest you contact the Company who will verify that at the time that I stated, TRAC were still in breach. I hope you will do that, and I will await your apology.

From my original post, which quotes the email reply from the CFO word for word without changing the broken English:-

From the CFO, Igor Vatenmacher to me via email on 5th July:-

"As we updated, we were in breaching of financial covenants with the bank and we still under negotiation to find mutual proper solution as we had done before."

[smithie6] 14/9/2022 12:24

Financial numbers don't look very pretty imo.

Holding very little cash imo relative to bank/other debts/loans & wrt the cash consumption rate of the co.

Still notably consuming cash.

I hope the co. makes it but its been listed for years & all it has ever done imo is just keep raising money to cover its losses.

No position.

[turbotrader2] 14/9/2022 11:32

Thanks Bap for your shares

[nick2412] 14/9/2022 11:05

No problem and thanks for that. All the best in your investments and life in general Bapodra.

[nick2412] 14/9/2022 10:24

It's a justification of the unjustifiable Bapodra rather than an apology. I find these sorts of discussions tedious, so won't make any further comments.

Firstly, you wrote "I have no evidence apart from something you have posted on ADFVN on this thread so for now I will have to discount that information as I have no evidence it is credible or accurate." So you questioned my honesty, and that was very offensive.

Secondly, you wrote, "If you had not shared that informed which you were not obliged to then as an investor one would simply not know"

That's a bizarre point as a) why would you not want to know and b) my post providing the information was in response to your post asking if anyone knew if TRAC was still in breach of the banking covenant!

You asked earlier on the thread: "Can someone please be kind enough to share 'credible' information on the banking covenant issue please. I may contact the company myself with regards to this."

I had the information direct from the Company CFO via email, which I posted word for word in direct response to your request.

I was providing the information you specifically sought, and rather than question my honesty, you could either of accepted it with thanks or contacted the CFO privately to check for yourself. If you hadn't asked, I wouldn't have posted.

The most useful (and frequently rare) threads on ADVFN provide an exchange of useful and factual information. You seem to take exception to that, which is odd.

Enough said, and I won't be replying or commenting anymore as there are far more interesting takes on the results to discuss. I've already used up my annual capacity for boredom in bothering to reply and explain the obvious. Good luck.

[nick2412] 14/9/2022 08:51

They have retained their legacy revenues reasonably well but presumably, these will continue to diminish. They need funding and some material (not token) contracts from DHL or Philip Morris. It's chicken and egg because these types of companies are unlikely to give sizeable contracts until TRAC sorts out its balance sheet.

TRAC has made it clear in previous announcements that revenues from the distributorships won't be meaningful until 2023. There's always a takeover possibility, but I won't be back in until they do a funding (not a death spiral CLN one either) that takes them securely well into 2023.

I couldn't see a reference in the notes to a breach in their banking covenants this time, so if they have resolved that issue, then that's a positive.

Edit:- Bapodra, I have just read your post. I initially ticked up your post until I read you were questioning my word. You are entitled to that view, just as I am increasingly taking a view on your personality and the number of spats you get involved in.

It's a fact that TRAC was in breach of their banking covenant (it was in the previous results announcement notes). It's also a fact that I received an email, with the date as stated in my post, from the CFO saying they remained in breach but were discussing a solution. I assume that's not the case anymore as TRAC haven't referenced it. I suggest you contact the Company who will verify that at the time that I stated, TRAC were still in breach. I hope you will do that, and I will await your apology.

From my original post, which quotes the email reply from the CFO word for word without changing the broken English:-

From the CFO, Igor Vatenmacher to me via email on 5th July:-

"As we updated, we were in breaching of financial covenants with the bank and we still under negotiation to find mutual proper solution as we had done before."

[dave4545] 14/9/2022 07:40

The volumes to knock this stock down are crazy.

It's meant to be a £5 mil stock and the mm's are crashing it 10% down on just £5k of sales

I thought the results were ok, obviously not earth shattering

[madmonkflin] 06/9/2022 12:35

Desperate for some news on orders....

[nick2412] 05/9/2022 11:18

Bapodra Investments:

From the CFO, Igor Vatenmacher to me via email on 5th July:-

"As we updated, we were in breaching of financial covenants with the bank and we still under negotiation to find mutual proper solution as we had done before."


I did email back with further queries but didn't hear back. There's been no update since that mentions the issue has been resolved. They will be obliged to update on all financials, including this issue with the results, which should come soon.

TRAC promise a lot, including supplying what was called Lokies (smart locks) for the Russian railroad. If one of these tantalising big-name 'potential/ deals ever comes off, it will transform the Company and share price. It only takes one, whether it's DHL, United Nations, Philip Morris etc. But there is a theme that all these big names are flagged up, and over the years, whether it be Starcom or TRAC, not one has come off.

I don't think a multinational will deal with a nanocap Company in breach of banking covenants. Hence, TRAC needs to sort their finances out as a priority as a precursor to getting big-name substantive orders.

The colossal figures are thrown around with unknown distributors, and all the big names bandied around that never commit to substantial orders suggest TRAC are big on hype and poor on delivery. It's not quite as black and white as that, though, as the products appear first-rate, as the DHL competition award highlighted.

[madmonkflin] 31/8/2022 15:30

aren't the results overdue?

[nick2412] 31/8/2022 10:26

All about the financial results, Bapodra. The financials will be dire with the Company still in breach of their banking covenant. The share price can still move forward, however, if they accompany the results with a decent size contract, and they could even raise funds at a sizeable premium to the current price. Too risky for me though until they get their balance sheet sorted.

Raising funds for orders based on solid contracts won't be a problem. Raising funds on the back of hyped distributorship agreements to mysterious unknown parties will be a much harder task and, almost inevitably, will be heavily discounted unless the directors cough up a significant chunk of the funds needed.