Toople Share Discussion Threads

[lukehold] 07/6/2019 07:40

Anyone with level 2?

[lukehold] 07/6/2019 07:34

10% increase indicated for open.. no news from what I can see

[lukehold] 07/6/2019 07:13

Informative posts on this thread thanks

[tewkesbury] 07/6/2019 00:22

They were already in Gross Profit for the last Annual Results. Admin expenses won't change much going forward, as they can grow without increasing headcount and the sales team is now in house. The latter also reduces cost of acquisition per customer. The last Annual Results recorded gross margin on retail had already risen to 21.7% and it will get even better. Monthly customer sign-up rate pcm is now probably 10x what it was this time last year but admin costs won't have changed much in comparison.

[cyberbub] 06/6/2019 23:18

No need to be rude bobdown, I've been investing and posting on ADVFN for over 10 years. Just trying to work out how realistic it is to see breakeven here soon.

[bobdown2] 06/6/2019 22:46

2m of revenue..does not look allot. But revenues lag initial costs. The 3.5 million three year contract is starting to kick in fast and that is a minimum figure. One contract that gave an estimated 260k over a two year period nearly made that total after one year..record amounts of business are increasing in monetary value every month. When the CEO states that cash flow positive and profitability has moved closer then that is the one that I take notice of. Unknown posters..I read the first post...l do not read many second ones because I've read the rns statements. If you like lots of reading go to the lying barstewards thread or...get a book.

[hottingup] 06/6/2019 22:30

Also Merlin Software Licenses:


Interim Results
May 2018

"Another factor expected to boost second half income will be the greater focus on the commercialisation of the Company's proprietary Merlin platform to support the needs of other resellers of telephony businesses to manage their client bases. A number of other telecoms companies buy, and are looking to buy, services from Toople, white label the propositions and resell to their own customers. Furthermore, the Merlin software platform gives access to wholesalers who want to interconnect with carriers for provisioning and billing services for their own customers, where a monthly licence fee is paid to access Merlin. Over time, the proportion of revenues we achieve from wholesale will reduce as we focus on the higher margin retail business. Although wholesale is not a strategic priority for the Company, we expect to redress the first half decline in wholesale revenues, with the added benefit of higher overall gross margin, through Merlin software licenses."

[hottingup] 06/6/2019 22:25

1) 5/10/2018, 13 min 12 sec:

"we won't be a business that is lmited by customer growth because we've got to add head count into the business...as a business, we can probably grow exponentially, 20, 30, 40 times bigger than what we are today, without having to add any heads into the business, and that is a key asset in terms of Merlin...growth is exponential."

2) Also: They are eliminating the legacy low margin wholesale in favour of higher margin retail contracts. Costs of acquisition per customer are falling and for customers renewing directly, is zero. They are charging wholesalers monthly for Merlin Software Licenses. Some of the business will have 30%+ gross margin, perhaps even closer to 40%.

3) Its already been pointed many normal financial parameters are not so relevant, as the objective is to line up for a takeover, for which the main ciriteria will be growing customer numbers.

They will get there.

[cyberbub] 06/6/2019 22:11

Just looking in here again after some time:Their gross margin is about 15% which is not bad actually. Clearly their product range (and/or their cost control) is good.However they have £2M overheads, so at 15% that means they need to make £12M just to break even.They're currently making £2M p.a. so need a * 500% * increase in revenues?!Is that really likely in the next 12 months say?

[bobdown2] 06/6/2019 20:50

Just checked the trust pilot scores. The results still read 175. But one extremely bad one has been removed and a green five star has replaced it. Most of the posters have been verified and some have not had the required result but the fake disruptive posts are being removed even though it takes about a week to sort them.. the trust pilot topple part looks allot better but there are some using it to do harm...

[2mex] 06/6/2019 19:18

Ben, I will email USwitch and ask them to promote Toople more. May not make a difference with one email but if everyone here emails them it could get a result.

[e-mail]

[e-mail]


I have just emailed them.

[2mex] 06/6/2019 18:54

Tewkesbury, yes all told the combined customer growth will be 1000+ per month. It dipped earlier in the year on the wholesale side. There was an article mentioning that Toople's margin had seen a substantial increase around January time. This will have been related to offloading high-risk, low-margin legacy wholesalers. Toople's wholesale will now be regaining traction and builing its numbers. I was expecting substantial to mean going from 13.5% to, say, 15%....but it actually increased to 19%: a 40% increase on margin...when they say substantial they mean it.

May is on course to beat April...and I expect the next step change increase in monthly customer uptake to occur in June / July.

The extra funding will be used to enhance digital marketing and as indicated this will have an effect on both direct customer growth and wholesale partners growth.

So, I expect a step change above the 1000+ customers currently being acquired on a monthly basis. Increasing wholesale using partners may be a clever way of balancing margin. They can throttle back marketing spend on one and increase on the other to maintain required margin.

[tewkesbury] 06/6/2019 13:56

Do you think Toop will release customer sign up figures for May this month? Worth remembering the 600+ for the previous month were just those signing direct with Toop so only part of the picture. Could they already be doing 1000+ per month all told? Perhaps you could give Andy a call and ask him to tweet something at least.

[2mex] 06/6/2019 12:07

From the 19H1 interims:

"-- New contract wins and partnership agreements continue, validating management decision to increase marketing spend"

This indicates that they are being proactive in signing partners. They are marketing to gain partners as well as direct customers. Andy will have hundreds of partners to approach from contacts made over the years. You can see why he said that he is more excited than he has ever been from the opportunity presented by Toople.

[2mex] 06/6/2019 10:49

Since that report of 18/19 wholesalers being added, 6 months have passed which could mean another 50+ partners added. Lets say each sells 3 revenue generating units per week at £27.99 per month...it builds very quickly towards adding £1m revenue just from the 50 partners and Toople are focused on bringing in quality partners. They have also appointed a manager for this channel.

[2mex] 06/6/2019 10:41

As we know, Toople has been adding new partners into the business and not releasing news because each partner is incremental addition.

Andy H, CEO "...I can see that in the last 60 days there are something like 18 or 19 wholesalers that have signed up to connect into Merlin to take white label..." VOX report 09 November 2018

[2mex] 06/6/2019 10:15

Acceleration to profit will be implemented with the extra cash but indeed a large wholesale contract will also help bring cash flow positive faster.

Its just a matter of time for cash flow positive. The cash is in place to achieve it. With current rate of growth I see it coming in end of 20H2 from my calculations. Another (expected) step change in Retail growth will bring it nearer...but so will big wholesale contracts.

Toople are well capable of bringing in big contracts. However, it looks like their focus may be on partners. It has been mentioned a couple of times in RNS releases. They say the partner channel is a growth driver. They may have better margin through this channel.

"..Another growth driver for us is our partnership agreements.."
Richard Horsman, AGM statement 22 March 2019

"..We are now focused on signing new partnership agreements that deliver gross margin improvements.."
Richard Horsman, 19H1 Interims

[2mex] 06/6/2019 10:12

Epsilon remain at 60m shares. 6.29% of 954m is the same as 5.25% of 1143m.

[ragnarr] 06/6/2019 09:53

Epsilon increased holdings

[2mex] 06/6/2019 09:43

The true indication of customer feedback is existing customers ordering more services.

Customers are happy with Toople and are buying more.

[parob] 06/6/2019 07:12

hTTps://www.thetimes.co.uk/article/bt-to-close-90-of-its-british-offices-and-shed-13-000-jobs-njv7glfvkBT to close 90% of its British offices and shed 13,000 jobs

[ff2345] 06/6/2019 04:01

I am a bit concerned with how Trustpilot is going: seems like they are taking their eye off the customer service ball in their dash to expand. Needs fixing!!

[top tips] 04/6/2019 11:18

Let the dust settle with Toop after the placing, accumulate through the quiet months of summer, and enjoy the announcements of growing customer numbers and revenues later on.