Toople Share Discussion Threads

[fatnacker] 25/5/2019 07:27

Investrip, I think folks are aware that the margins are low and breaking even in 6 months is not nailed on but the customer base is growing rapidly enough, was half of one percent market share and growing exponentially, I'm not entirely sure why you've recently joined advfn and its not my business but demanding folks answer your irrelevant questions will certainly get you a reaction, not the one you want though, or maybe it is.

[2mex] 24/5/2019 21:27

These are some great points made by ff2345:


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!!!

[2mex] 24/5/2019 20:39

From the TalkTalk site:
"..(TalkTalk Business) As the value champion in the B2B market we aim to double the size of TalkTalk Business by growing its presence in the small business market.."

TalkTalk are looking to grow substantially.

I gained some information - there is still a link to TalkTalk. Toople are using TalkTalk lines.

Scenario:
(1) ex-talktalk director independently builds a large customer base.
(2) Toople have working relation link with TalkTalk.
(3) Toople's customers are on TalkTalk lines.
(4) At 19H1 interims, ex-talktalk director mentions "Over time we believe we will have a role to play in this M&A activity"
(5) TalkTalk Business wish to expand...and how convenient: a large SME customer base comes up for sale - and the customers are already on TalkTalk lines.

[2mex] 24/5/2019 19:28

As the retail orders continue to break monthly records the retail margin is also improving.

This is evidence of exactly what Andy Hollingworth was saying from the beginning. The increase in orders drives down the costs of each customer acquisition.

..and as Toople become more significant the carriers are giving Toople a better deal - further driving down costs.

[2mex] 24/5/2019 19:21

From a report 22 March 2019:

"Toople said its gross profit continued to improve 'substantially' after it signed up new customers in December and January"

It turned out that "substantially" was not an exaggeration.

The previously reported overall margin had been 13.5% and we speculated at an improvement to 15% (11% increase seems substantial).

It actually improved to 19% which is a 40% improvement.

[2mex] 24/5/2019 19:11

From FY18 results:
Retail gross margin was 21.7%
Wholesale margin would have been approx. 7% because of legacy deals
Overall gross margin was 13.5%

So the ratio of customer wholesale/retail was ~60/40

From data provided via RNS, at FY18 there were ~2500 Retail and therefore ~3750 wholesale customers: 6250 total at FY18.


From interim results:
(1) there was a slight drop in wholesale revenue. This would have been a large amount of legacy, low margin removed and almost fully replaced by better margin contracts/partners. I believe the wholesale target margin was 10%.
(2) retail added ~2880 customers.

At FY18, overall gross margin changed to 19% and wholesale margin would have changed to 10%...so there is enough data to estimate current retail margin.

Customer base ratio wholesale/retail at interims was 40/60. previously 60/40.

This means that the retail margin is now running at 25% (up from the FY18 21.7%)

So, legacy low margin wholesale has gone and retail margin has improved.

[lukehold] 24/5/2019 16:59

I was the only small buy today.. very quiet, topped up to 2m shares

[lukehold] 24/5/2019 16:57

I was them buy today topped up

[queenwood] 24/5/2019 16:55

napoleon do you mean 12bm

[napoleon 14th] 24/5/2019 15:43

12bn filtered a long time ago.
Invest rip doesn't need filtering - gets squashed by the moderator!

Watching TOOP hold this level before I| get back in.

GLA.

[12bn] 24/5/2019 15:07

I would ban the pair of the trolls.

[12bn] 24/5/2019 15:03

Sm0ggyG,is 12bm,he used to post on my MRS thread and Kod thread. I do not know for certain who Investrip is but maybe he could tell us the name he previously used on advfn. He has been a member for all of 2 days and he only posts here and he is negative. I think this thread is under a troll attack by someone.

[bryall2] 24/5/2019 13:18

Listen here peeps, the Investrip dude above, has only been a member for FIVE DAYS, probably best filtered. Al.

[bobdown2] 24/5/2019 12:03

A smaller contract than the 3.5m contract has exceeded expectations. That is down in the results towards the end it gives the revenue amount. It is not to be ignored and it is in black and white. The 3.5m contract is ten times its size... It is the accumulation of new wholesale, retail, broadband, telephony and mobile incremental revenues coming through the system. The CEO has stated that everything is going to plan and budgeted according to the placing...long term holders understand this..

[hottingup] 24/5/2019 11:40

Investrip, its about taking market share from BT and TOOP are doing that every day. They are also cutting the legacy lower margin wholeside side in line with their growth strategy.


Interim Results for 6 months to 31/3/2019 (released 15/5/2019)

Financial and Operational Highlights:

-- Group revenue grew year on year by 57% to GBP1.08m for the six month period:

o 169% revenue growth attributable to our directly contracted SME business.
o Broadband revenue grew by 159%.
o Cloud telephony revenue grew by 82%.
o Mobile revenue grew by 124%.
o 7% decline in wholesale revenue - largely expected as we take action to eliminate legacy, low margin revenue.

-- Gross profit increased by 150% (up 72% on H2 2018).
-- Gross margins improved by 7 percentage points over same period last year.