Toople Share Discussion Threads

[rackempackemandstackem] 29/5/2019 10:41

How do you think toop can afford to look at any takeover right now?

[ff2345] 29/5/2019 10:13

bob: 100% agree.

Like all M&A activity, BONLINE will put a big value on themselves as investors will want to get their £6m back. So it would be a share swap, valuing BONLINE at just under TOOPLE with a view to that growing to more than £6m as the share price of the combined entity climbs to reflect merger benefits.

[mam fach] 29/5/2019 10:11

Makes Toop an exciting share to hold.
Had been watching before JW started giving good write up.
Made 1st purchase @ .027 thinking how often can you buy below placing?
Been topping up ever since -sold a few here and there also.

[bobdown2] 29/5/2019 10:02

2345. Agreed...mostly....toople seem to be motoring at the moment and BONLINE should only be an option if the price and dilution work to tooples advantage.

[mam fach] 29/5/2019 09:42

Told you old boys club.
If they can make money so can we,
On a more sober note you only hear of their successes.
It's like gamblers betting on horses.
Only ever hear about their big winners.
You pays your money and makes your choice.

[ff2345] 29/5/2019 09:31

And the founder, and a major shareholder, of BONLINE was also the founder of XLN Telecom. Small world they operate in!

[ff2345] 29/5/2019 09:27

It is NOT £6m of debt: that is the accumulated losses.

They had net current assets of £400k at June 2018.

Just think, if we took £800k overheads out of the combined entity, they would be trading profitably from the off. Cash in the bank and a rapidly growing customer base. Add in cross sales to the web site business and we have something worth looking at.

[bobdown2] 29/5/2019 09:24

Figures to go with the % numbers would have instilled more confidence. However the research from this thread showing posible customer numbers / products uptake is in line with the the c.e.o,s comments and statements about monthly numbers.

[bobdown2] 29/5/2019 09:19

A posible 3% of the placing moved on so far this morning. It's very encouraging to see the initial demand after yesterday's placing news. Second guessing will come into play as investors try to time the end of the funding shares....

[mam fach] 29/5/2019 09:15

It's the old boys club.
Follow the money. They have a plan.
Happy to hold.

[bobdown2] 29/5/2019 09:15

Chestnuts. If it is debt...I have not researched it. Losses are acceptable, but not that amount of debt. My preferred option is a small bolt on that adds another service. That could be used to sell onto other providers. Above everything else the purchase must be canny, cheap and market appreciative. First things first cash flow positive required because the enlarged customer base plus increased financial strength gives strength to any negotiations. I think we might have a wait for the first m.a unless it is very cheap and a clever purchase.

[chestnuts] 29/5/2019 09:04

Bob

Are you crazy £6m debt would kill toop how much money per yr would it take to service the debt , I would rather wait for natural growth.

[bobdown2] 29/5/2019 09:01

ff2345..that would work well. The price would need to be right as well the potential to add in cross selling. However some would bulk at 6m of debt. Unless it is previous losses and then it would be an asset. The increased customer base and future cost savings would bring a takeover that much sooner.

[chestnuts] 29/5/2019 08:43

ff2345

So Bonline have £6m of debt, we have just got rid of the debt why would we want to take on £6m of debt for 15000 customers. I dont think so

[ashtree2] 29/5/2019 08:43

Verulamium..Breith lent alot of money to the company at no interest in order to get things moving.Needed him in the beginning .AH is now starting to show the business has legs. There has to be some deal which we are not privy to.oimv

[ff2345] 29/5/2019 07:56

Seems that speculation continues about the potential for some M&A activity. I said some months ago that there had to be a reason for TOOPLE to be on the main market and not AIM, and being a market consolidator could well be the reason.

So started to look at who they may acquire/merge with...... came across BONLINE. Has anyone else taken a look?

- Private company
- Moved into Telecoms in 2017 after starting in web design
- Over 10,000 Telecoms customers in 2017
- 2,800 Trustpilot reviews with a score of 8.9
- Lost £1m to June 2018, but in operating profit since start of 2019 and at beak even mid 2019.
- Accumulated losses of £6m (a good asset for tax reasons)
- Net current assets of £400k at June 2018

Plenty to discuss about the potential for a tie up here....
- BONLINE have 15,000 customers to add to the TOOPLE 15,000
- streamline the overheads (marketing, admin, technology)
- give BONLINE shareholders a market for their shares
- etc

[verulamium] 29/5/2019 07:53

If he'd wanted to convert debt to shares he'd have got a significantly better deal than this. Ridiculous notion. Besides which, it's better for everyone if he's gone completely for good.

[fatnacker] 29/5/2019 07:38

Not according to the rns

[ashtree2] 29/5/2019 07:06

I would be very surprised if Breith doesnt have a large chunk of shares in TOOP following this deal to eliminate the debt.any thoughts.

[bobdown2] 29/5/2019 06:57

.fwitw. There are two important parts to the fund raise and the change of focus in the interims. The interims left out cash flow positive and never explained the financial and operational changes mentioned in the March company update. From yesterday the focus switched to m.a. activity and cash flow. The statement "to accelerate its time frame to cash generation and profitability " was made. The ceo has now made clear " yesterday " that cash generation is now taking place. Profitability? Who knows. But we now know why it was not mentioned in the interims. What comes first now..cash generation / profitability or m.a. I think cash generation unless toople get taken over. Or once toople get to the generating cash stage they bolt on some small acquisitions to bolster their offering. Either way..no debt and profitability back on the menu...the risks given at the end of Rns statements are reducing and the share price will increase to reflect this.

[kmscott] 28/5/2019 20:19

Agreed re the M&A views, mentioned several times on the podcast today.

[bobdown2] 28/5/2019 20:07

Yep...there has been emphasis put on the merger and acquisition side recently. Also after leaving them out of the interims.. Cash flow positive and profitable has emphasis again. I would imagine that cash flow positive will only be announced when it has been achieved or so close that it is a matter of fact.