Totally Share Discussion Threads

[sikhthetech] 28/11/2023 12:35

1gw,

"I am surprised that there is no reference to goodwill impairment"
Why? Given you've been wrong on all your other stories, it's not surprising.

What's your view on all your previous suggestions, which haven't come true as well:
1) IIs selling.
There's been no significant selling by IIs prior to today's interims. IIs held around 46-47%
2) AGM resolutions will fail.
All resolutions were passed, vast majority unanimously.
3) fy dividend won't be paid as they don't have cash.
The fy dividend was declared and paid.
4) CFO will be dismissed/replaced.
The CFO is still there and will be presenting the investor presentation on Thur.
5) They need cash, so placing.
No placing announced.

etc

[jugears] 28/11/2023 12:30

So why did they rise & today fall back?

[sikhthetech] 28/11/2023 12:26

A lot of this morning's update was already known and/or was expected. Staffing, wage inflation etc.

A lot of the challenges are already behind us and factored into the share price

Read the company/sector newsflow.

[1gw] 28/11/2023 12:09

I am surprised that there is no reference to goodwill impairment, even if this is an unaudited report. Comparison of end-period market cap with end-period shareholders’ funds (or net assets) gives a pretty unambiguous indicator of impairment imo. It seems strange to me not even to mention in the interim report whether an indicator-based impairment test has been performed, given the potential materiality to the balance sheet.

Accounting policy (note 4 in AR):
"A CGU to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired."

Cash position and withdrawal of guidance look to me like the main negatives compared to expectations. The company now has a net debt position, even if you ignore the lease liabilities (which have increased noticeably from end-FY23):

£1.7m cash & equivalents
£2.5m borrowings
£2.8m lease liabilities

£3.6m net debt including lease liabilities or £0.8m net debt excluding them.

Negative operating cashflow in the period sits uncomfortably with £15m [edit: £15m reported but looks like it should perhaps be £12m] of net current liabilities. The company appears exposed to the loss of any more large negative working capital contracts given the implications of such an event for cash and in that context the report in the interims of behaviour on the North West London contracts is hardly reassuring: “despite previous assertions that we would retain the contracts, the ICB allowed the contracts to end.”

With the shareprice sitting below nominal value, and having in any case withdrawn the AGM resolution 7 (issue equity for cash without pre-emption), the options to raise cash quickly, should that be required, appear fairly limited once the remaining revolving credit facility is used up.

[andymunchkin] 28/11/2023 11:48

andymunchkin4 Oct '23 - 13:53 - 941 of 1007 Edit
0 0 0
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andymunchkin14 Feb '23 - 15:21 - 615 of 940 Edit
0 0 0
1op Cometh pumPing isOver
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nOtbAd 5p nxt saleIsOn

[andymunchkin] 28/11/2023 11:44

sikhthetech19 Apr '23 - 12:35 - 19814 of 20589
0 1 1
Great to see continued buying after yesterday's news on increased footprint for insourcing.

£34m mcap with recurring revenues, cash in bank and paying dividends.
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spacedust19 Apr '23 - 13:24 - 19815 of 20589
0 0 1
Should be 90p immediately
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hamhamham119 Apr '23 - 13:31 - 19816 of 20589
0 1 0
Lovely rise :)
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hamhamham119 Apr '23 - 13:32 - 19817 of 20589
0 0 0
90p would do me, but would settle for 35p, for now ;)
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nOtbAd
hey sikhTHY cnT plz allOw metOpOst onUR threAd . wanna contribUte sme.ta

[barkbooo] 28/11/2023 11:29

His last TLY post:

“Sikhthetech - 27 Nov 2023 - 14:25:42 - 20553 of 20591 Totally Health - 2014 onwards - TLY
Interims tomorrow, Investor presentation Thurs, 11am”

Come out, come out wherever you are.

[jugears] 28/11/2023 11:22

Smithy I bought at 15p & sold at 21p, hope you get your money back but not looking good.

[johndoe23] 28/11/2023 10:25

Rank bad management here. Uninvestable

[quazie12] 28/11/2023 10:24

PMSL Smithie6 is the new sikhtehtech

[quazie12] 28/11/2023 10:21

They may have been priced in yesterday Nobbygnome but disillusioned investors are fleeing for the exits this morning now they realise this management has overseen the destruction of shareholder value

[dr biotech] 28/11/2023 10:20

You can't do that. Its like saying my car is still worth the 20k I paid for it 5 years ago when it clearly is not. Might as well say its profitable if you didn't pay anyone. Unfortunately its mostly ongoing costs too - they gave this note below in the finals, without giving a breakdown.

As predicted this has been a bit of a basket case since they lost the London contracts



Depreciation is calculated to write down the cost of the assets to their residual values by equal instalments over the estimated useful economic lives as follows:


Motor vehicles - 3 and 5
years
Computer equipment - 2 and 5
years
Plant and machinery and Office equipment - 2 to 5 years
Freehold property improvements and Short - 3 to 10
leasehold property years

The assets' residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, on an annual basis. An asset is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the period that the asset is derecognised.



Smithie628 Nov '23 - 08:39 - 20577 of 20582
0 2 1
..if remove the depreciation & amortisation charge of ~£2.5 million (due to past acquisitions I assume) then it was profitable

[smithie6] 28/11/2023 09:57

I retired 'young'. :-)

Good of you to have run a business for 50 years, need/needed some ppl to work to keep the country running/afloat !!
....after 50 years you must know almost everything about whatever that company did !

[smithie6] 28/11/2023 09:46

In at about 8-8.5p.

Happily not 20-50p !!
(I had a look when it was 40p & couldn't believe how expensive it was)

[jugears] 28/11/2023 09:36

Smithies how big is your loss here?if your lucky these may go to 8p Purley as a trading stock buy these will never be 20p again, truste I have ran a company fo nearly 50 years & this is going nowhere.

[smithie6] 28/11/2023 09:27

...phps grinding back upwards, sale gone thru at 6.5p.

(I thought the mkt already expected results like this, so I'm surprised by the size of the fall, clearly not)

[smithie6] 28/11/2023 09:26

..the gross margin is ok, imo, just under 20%

..the overhead after that was too high. Now reduced by £3 million, to around £5 million. (imo they should do some more cutting & get it down lower).
As a % of the cost for the working/caring/medical staff it is still too high imo.

[hybrasil] 28/11/2023 08:51

When I invested here some years ago I got my son to have a look “dad the margins are too low”

I should have listened

[smithie6] 28/11/2023 08:39

..if remove the depreciation & amortisation charge of ~£2.5 million (due to past acquisitions I assume) then it was profitable

Fall is overdone imo.

[jugears] 28/11/2023 08:36

I did say nobby that it was speculative bounce!

[nobbygnome] 28/11/2023 08:27

Well not great results with a predictable market reaction but in reality the fall is overdone since these sort of results were already priced in after the big fall. Ho hum….

[tia01] 28/11/2023 08:23

After the recent jump you’d have to be disappointed at today’s action

[smithie6] 28/11/2023 08:23

6.5p-7p now

Bouncing back.