Toople Share Discussion Threads

[2mex] 30/5/2019 21:53

So how much is Toople worth right now?

Well, we know gross margin is running at 19%.

We also know the Retail margin has improved further to ~25% AND that Toople are going to accelerate digital marketing to put Retail growth on next level.

So, all looking good and cash position has increased to £1.5 million.

In post 2685, (and before the extra cash for marketing that they now have) I provided my estimates for projected customer base size. Thing to bear in mind is that with "foot off the gas" ie. Toople at a critical moment stopped customer acquisition through retail then costs would immediately drop off.

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19H1 Wholesale has treaded water as old legacy base has been replaced by new partners customer base.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

19H1 combined base 9,130

Toople have already started receiving batches of telephony customers from the 3.5m contract and Retail side is generating AT LEAST 600 customers per month and growing.

For anyone wanting to make their own estimate of valuation: the current customer base will be around 11,500.

Another significant detail is that Toople's customer base is growing rapidly. The bigger companies simply cannot multiply in size like Toople can. They can increase their customer base partially but Toople can grow in multiples.

Wholesale growth should regain traction in 19H2.
19H2 added retail 3,600 and added wholesale 1,400 + 2,000 (3.5m contract)
So FY19 combined base approx. 16,000

Year end combined base approx. 19,000

[2mex] 30/5/2019 21:43

One thing for sure Toople is seriously undervalued.

Merlin alone could be capitalised at £1million. It has been evidenced in at least 2 RNS releases as a deciding factor in why 2 large contracts were won.

[marmiesz] 30/5/2019 19:36

Thanks 2mex. I thought so but wanted it confirmed.Marmie

[2mex] 30/5/2019 19:32

It is still there and both SMA 50 & 200 are climbing...we could see a major rally and RSI looking ready.

Toople have just achieved "extreme value" in repayment of their only debt at 75% discount and also adding £450K to the cash position: increasing it to £1.5 million. That's golden value.

[marmiesz] 30/5/2019 19:25

We were on a golden cross a couple of weeks ago. Does anyone know if that's still the case or was it a false dawn?Marmie

[2mex] 30/5/2019 18:36

RSI settled. Could be ready for next leg up especially now that extra cash has been added to the already healthy cash position.

[tewkesbury] 30/5/2019 18:29

Daisy Group only had 360,000 customers (7% of the market) plus debt, and turned down an all cash takeover offer of £1.6 billion in 2018 from a private equity company.

Toop aim to get 5% of the markek, or approx 250,000 customers.

Using Daisy as the comparitor for a Toop future valuation:

- Toop with 5% or 250,000 customers = 250/360 x £1.6 billion = £1.11 billion (or more if Toop remain debt free).

- Toop with 1% or 50,000 customers = 50/360 x £1.6 billion = £222 million (or more if Toop remain debt free).

- Toop with 0.5% or 25,000 customers = 25/360 x £1.6 billion = £111 million (or more if Toop remain debt free).

[chestnuts] 30/5/2019 16:18

Sorry for being off topic but if any one is interested that gas price have dropped to 28.5p a therm this is the lowest its been for yrs and i think it will go to around 20p a therm in the next month or so , this will be an amazing time to renew your gas and electric contracts, if you do it in house there usually no charge for swapping, for an example my contract if i swapped today from last yr is down 17% and by end of the month i am hoping it will drop to at least another 8%.

[tewkesbury] 30/5/2019 15:19

28 May 2019
Toople PLC
Repayment of Debt and Private Placing

Key extracts -

1) "raised gross proceeds of GBP662,231 from the placing"

2) "The Company proposes to use the funds to redeem the outstanding loan to the Company from David Breith ("the Loan") at a substantial discount to its book value, as well investing further in the business to accelerate the sign up of new customers, who over the life of their fixed term contracts will contribute to increased revenues for the Company."

3) "Mr Breith has now agreed to accept a payment of GBP150,000 in full and final settlement of the Loan, subject to this payment being made by 31 May 2019."

4) "Given the demand and the opportunity to repay the Company's debt at a significant discount to book value, the Board believes that the Placing is very much in the interest of all shareholders. We were delighted that investor interest was such that the Placing utilised all of the share authorities that were granted at the recent AGM."

5) "Once the Loan has been repaid, the Company will use the remaining funds raised to invest further in its digital marketing strategy to increase the rate of customer enquiries and correspondingly to improve conversion rates. Given that these customers are typically signing two year fixed contracts, we believe that the Company can use this opportunity to accelerate its timeframe to cash generation and profitability."

[mr.oz] 30/5/2019 11:34

New'holders' shares changing hands quite rapidly

[marmiesz] 30/5/2019 10:36

Just done the same! Thanks,M

[bobdown2] 30/5/2019 10:26

Marmie. I have cleared my account by clearing my iPad cache. The barclays lady talked me through it...

[marmiesz] 30/5/2019 10:10

Frustrating as wanted to place an online order. Might just phone them and get them to do it but make sure you don't get charged for it,Marmie

[bobdown2] 30/5/2019 10:02

Yes....well done....I just rung them...I was told it could be a cache problem wth my computer...but we now know it is not.

[marmiesz] 30/5/2019 09:51

Anyone having problems with Barclays today. Constant error 500 notice on investment part of site,Marmie

[chestnuts] 30/5/2019 09:18

Just been looking at BoLine they have 19000 customers so they would make a good partner but it would have be on Toops terms , and no cash we would need that for rehousing them and redundencies payments but it would probably make them cash positive.

[cookie dough] 30/5/2019 09:07

I understood that they went to genuine holders ie it sounded from the AH interview that they were broker clients that wanted to invest based on the recents results. Whether they are genuine LTH is yet to be seen.

[tewkesbury] 30/5/2019 09:06

Anyone with 3% or more will have to declare. Could just be a number of smaller holder clients of the broker.

[bobdown2] 30/5/2019 08:56

Sorry to state the bleedingly obvious....but where did those placing shares go to. Have we now genuine holder / holders with around 20% of the companies shares.

[ayl30] 30/5/2019 08:50

Agree, did the same myself today

[top tips] 30/5/2019 08:46

Grabbed some more. Toop will be 10p+ soon.

[mam fach] 30/5/2019 08:08

We've moved on from shenanigans to backstabbing to dirty tricks in the political arena.Dismayed @ the level we are stooping to.But TOOP will be a winner.

[tewkesbury] 30/5/2019 08:05

Andy said he already knew May will be another good month. Hopefully some figures in June and an accretive acquisition this summer now they have plenty of cash.

[bobdown2] 30/5/2019 08:00

One would imagine that the move to cash generation will be the one that causes the biggest movement in the share price. With the political shenanigans going on and toople in this stage of its development its a good share to be in at the moment.

[tewkesbury] 30/5/2019 07:55

£606k debt just paid off, so now debt free and further cash raised to fund growth and earlier profitability.Share price should now be 3p to 5p.