Toople Share Discussion Threads

[ramellous] 16/5/2019 12:15

How can toople have a hundred years of broadband experience according to this advert?.

[bobdown2] 16/5/2019 11:40

After profit taking on good news...that in itself creates a buying opportunity.

[smraynot] 16/5/2019 11:35

Have a look at LID while TOOP is in the doldrums!

[bobdown2] 16/5/2019 11:31

It's nice to see the interview in that format..

[azuli] 16/5/2019 11:06

Perking up a bit now anyway, a few buyers moving in at this level.

[azuli] 16/5/2019 10:50

ff,

I hear what you're saying and i agree about the change in wording from being fully funded through to cash generation to now being sufficiently funded to pursue their marketing strategy. That alone is probably responsible for at least some of the sell off yesterday and today. However, i think it's a little unfair to say the results aren't great to anyone invested at 0.6p. For months it sat barely moving at or below 0.3p, where most of us posting on this thread have bought or added at during said months. Only very recently has the share price rallied northwards to any significant degree, and anyone who bought at 0.6p did so at the very top of said rally. Even at the current price, compared to the relative flatline around 0.3p, it's still up over 30%. Matter of perspective i guess.

[hottingup] 16/5/2019 10:21

15/5/2019 - (13 min 54 sec onward)

[pwhite73] 16/5/2019 10:16

ff2345

There is no right way to pitch any kind of warning. I have read countless results where directors have sought to cushion and soften the blow of revenue and profits warnings. None of it works. There is only one thing worse which is to surprise the market with a downturn then you are in real trouble. The shares have fallen sharply and I think they are oversold. TOOP is still a growth story even with another equity raise. As AH said they are getting mentioned in price comparisons. The mcap is only £4m. This will recover.

[ff2345] 16/5/2019 10:03

Thx bob

To declare my interest, I am a holder.

My above analysis suggests that TOOPLE is on the right path. I would like to see new services being offered to allow for cross selling opportunities, as well as one or two new "big" contracts like the £3.5m one from August last year. I also expect some corporate activity.

I do have issues though:
- Not best pleased that AH seems to have brushed under the carpet the ability, or otherwise, of the company to get to breakeven before more cash is required.
- I also did not like the wording that related to the decision to reduce the legacy, low margin, business. To say that they are likely to "see headline revenues decline" as a result is very poor english and opened them up to the "Revenue Warning" headline in the Alliance News. They should have stated that revenue growth will not be as high as it otherwise would have been.
- And my last issue is that I dislike it when the CEO comes to interviews beaming, to announce great results..... say that to those who invested at around the 0.6p mark who have now lost 35% because the results were NOT what the market anticipated.

[bobdown2] 16/5/2019 09:31

Ff2345... Thank you for the informative posts this morning...excellent..

[ff2345] 16/5/2019 09:28

One other way to look at the results is to ask what level of new business is required to generate enough margin to cover the overheads.

Overheads are running at approx £171,000 per month.

Assume that the current monthly sales are at £240,000 with 19% GP. This provides £45,000 towards overheads.

To meet the remaining £126,000 of overheads requires recurring monthly sales of £360,000 (with a gross margin of 35%). This has to be achieved month by month, plus any resales required as previous monthly contracts come to an end.

We have been told that we were at £250,000 back in October/November.

My guess is that we are currently around the £300,0000 mark, so closing that gap to profitability.

[pwhite73] 16/5/2019 09:28

12bn

I have had a look on the other thread going back a few days and I see nothing that shouldn't be allowed on this thread. Lies about the company or individuals is not a reason to be running two threads sided by side. Newbies and would be investors don't know whether they are coming or going. Unless somebody is ruining the thread with images or obnoxious material unrelated to Toople I would lift all moderations and see how things go. But trying to read up on two threads is absolutely impossible. Some people are posting on both so you can't even see where the conversation thread ends and starts.

[12bn] 16/5/2019 09:11

This is the good sensible thread but the derampers do need another thread to post their bile,hence the need for the 2 threads. Readers will soon realise that 2mex thread is the better thread due to his sensible moderating/banning policy.

[queenwood] 16/5/2019 08:59

I can’t stand the lies posted on the other thread ,I have to rebut them ,but you do have a point.

[pwhite73] 16/5/2019 08:54

What's with the two threads can we call a truce and just stick to one please. Important information is being posted on both threads.

[pwhite73] 16/5/2019 08:48

That the markets are not yet convinced of its growth story further enhances its chances of being taken out. Shareholders will settle for a premium to the current price.

[bobdown2] 16/5/2019 08:17

Revenues following costs paint a false picture of where the company of the companies

[parob] 16/5/2019 07:29

A good summary there ff2345.Positive news flow of more record months and new material contract wins should drive the price higher over the course of the year. This is a growth business that's growing fast. AH: "arguably the fastest growing business in this sector".TOOP has takeover target written all over it, especially whilst the market cap is so low compared to competitors, back down to just £4.3Million!

[ff2345] 16/5/2019 06:15

2mex

We are on the same page with regard to the numbers.

If I were tidying up the business for sale or merger activity, what would I do.....

- Remove low margin legacy contracts (done)
- Increase gross margin (done)
- Reduce threat of bad debts (done - see note on reducing risk in the Interims)
- Beef up the sales team (done - new sales manager)
- Increase sales (done - record April)
- Increase market awareness (done - Uswitch)
- Increase industry awareness (done - now used as a reference point)
- Have management team used to corporate action (done - Chairman and Finance director with Cybit)
- Mention in the results that you will be part of M and A activity!!!

I think something will happen in the next 6 months, before the need to inject more cash.

[cookie dough] 15/5/2019 23:03

Great spot 2mex! Toople's business strategy is gaining traction. Actively increasing margins by dropping lower margin wholesale business and the marketing strategy is clearly working. 600 retail clients per month is massive for a micro cap telco company. All looks good as far as I am concerned.

[2mex] 15/5/2019 22:24

Another thing to note is overall gross margin.
Look at 19H1:
£1.08m revenue at 19.1% margin => £207K gross profit

We were expecting 15% margin:
If it had been 15% Toople would have required £1.38m revenue produce £207K gross profit.

If Toople had not removed the legacy wholesale we may have been looking at £1.38m revenue with 15% margin. That was where I was estimating it.

Toople have taken that action as planned... and importantly they have not lost momentum. In fact, growth rate is increasing - with great margins.

[tewkesbury] 15/5/2019 22:09

2mex, interesting, thanks.

P.S.
We should all be asking AH to provide actual numbers of direct and wholesale customer sign-ups for each month covered in each update, plus the total number of direct and wholesale customers on the books at the time, with each update.

Ideally there would be a live counter on the website showing the total number of retail customers and total number of wholesale customers. This should be possible as the Merlin system is automated.

Some updates have just said things like % increases over the figure 12 months ago, which is not helpful if we don't know that 12 month old figure in the first place.

[2mex] 15/5/2019 22:05

Lukehold, 50/200 SMA Golden Cross is there.

[2mex] 15/5/2019 22:01

In 19H1 legacy wholesale has been terminated and replaced by new incoming partners and contracts. A lot of legacy has now gone - a lot because even with the new partners and contracts, wholesale treaded water. With legacy mostly gone wholesale should regain traction as the better margin partners kick-in (with more added continuously).

I revised my estimates to allow for the legacy wholesale removal.

I calculate FY18 as 2,500 retail. Wholesale/retail ratio was 60/40 so at FY18 combined base would have been approx 6,250.

19H1 Wholesale has treaded water as old legacy base has been replaced by new partners customer base. So I will add just retail:
Oct18 425
Nov18 455
Dec18 450
Jan19 500
Feb19 500
Mar19 550 … 6 months total 2,880

19H1 combined base 9,130

Wholesale should regain traction in 19H2.
19H2 added retail 3,600 and added wholesale 1,400.
So FY19 approx. 14,000

year end approx. 17,000