Trakm8 Share Discussion Threads

[dc2] 01/5/2020 22:32

Jeez, I regret posting that info.

[michaelmouse] 01/5/2020 20:42

dave2608 - I have no idea what that link is for. I'm perfectly au fait with nominee accounts thanks. I don't see the relevance of your link with my post?

[dave2608] 01/5/2020 20:29

Here's for greater clarification michaelmouse. Although Blondeamon has summed it up in his first sentence. Basically these are the totals of the brokers nominee accounts.

[michaelmouse] 01/5/2020 18:57

dc2 - Microlise own 20% and the Directors own about 27% which gives the figure of 47% not in public hands.

Blondeamon - "Not a single Institution is investing in TRAK which is a major red flag."

How would they do this without Trakm8 raising money through a placing? If an institution was interested they couldn't pick up shares in the open market without sending the share price into the stratosphere given the high illiquidity in trading the shares.

The last placing was in January 2019 when Microlise took 20% at a share price of 22p with the Directors taking a further £700,000 worth.

[dc2] 01/5/2020 10:20

Slight update to the shareholder information. I guess these changes reflect things like a recent large holder selling out but good to see others, such as the former CFO, not selling.

Updated 27th April 2020 - last update 30th Sept 2019 shown in brackets - these are the changes:

HARGREAVES LANSDOWN 7.42% (7.2%)
HSDL NOMINEES 4.27% (4.12%)
INTERACTIVE INVESTOR TRADING LIMITED 3.25% (3.3%)
BARCLAYS STOCKBROKERS LIMITED 3.01% (3.2%)
A J BELL < 3% (3.13%)

It does add that the % of shares not in public hands is now 47.7% (47.6%) - not sure how that works

[knowbodyyouno] 30/4/2020 16:37

Both Direct Line and the AA are reporting audited results next week (Direct Line - Q1) - (AA - Full year). Might provide a little more insight.

[dave2608] 28/4/2020 16:16

Pmsl comedy gold.

[trakm8fan] 28/4/2020 15:37

I think today's rise is clearly as a result of the well thought out comments on this board from Me.

[knowbodyyouno] 28/4/2020 13:48

Indeed.

Particularly, the new member of the BOD or better still the FD!

Yesterday was a typical overreaction to a largely positive (in present circumstances)RNS.

[dc2] 28/4/2020 13:23

Nice to see a rise today (I may have jinxed it) - 20% over the last week so I am not complaining :o)

Would be nice to see a director purchase though.

[dave2608] 27/4/2020 18:41

Most of these HMRC payments will be done quarterly, so I'd imagine it's quite a sizeable chunk.

[dc2] 27/4/2020 18:17

Dave, I agree with you - it states "We *have* and will continue to take the cash flow benefit of deferred payments". Given that the year end was less than a month ago it does imply that some of that £1.7m is owed to HMRC. As for your figures, the bigger the deferral payment the better, especially VAT (LOL).

[epsomsalts1] 27/4/2020 17:57

QTX has had a good day but then again they do have £8.5M in the bank...

[dave2608] 27/4/2020 17:55

It doesn't read like that to me dc2. To me it reads that the £1.7 million in cash includes the deferred payments of PAYE/NI and VAT. So if e.g. deferred payments amount to £1 million, then really they only have £700,000 in cash. I suppose you could quickly work out a ball park figure for the deferrals. VAT @ 20% of sales for the quarter + approx 30 % of the wage bill (NI & tax) for the staff still working for the quarter.

[dc2] 27/4/2020 17:40

Thanks Dave, I think that was my point although I accept that the £1.7 may reflect the end of the period and so there may be extra cash (from the deferral).More telling is the QTX vs TRAK share price today. I feel the QTX's update was more brutal but the share went positive, unlike trak.

[dave2608] 27/4/2020 17:36

trakm8Fan re your post 4914 "This would have required making product and selling it."
I'll ask you once again. Where are the sales? The revenue has stalled. As for £1.4 million profit, you're having a laugh aren't you? Is R + D an expense? Of course it is. We'll see how much they put through the p & l. I suspect though it will all be capitalised.

[dave2608] 27/4/2020 17:27

dc2 27 Apr '20 - 09:28 - 4902 of 4913
I did have one concern about their deferral about PAYE/VAT. Where is this cash held, one assumes it is part of the £1.7m

They have vaguely given you the answer in their statement. I suspect PAYE/NI/VAT makes up the vast bulk of the £1.7 million cash on hand but they haven't given you any figures. Why haven't they? Why can't they be more transparent? Might it not be very pleasant reading?

"We are continuously reviewing our expenditure and cost base. We have taken advantage of the Government Job Support Scheme and have currently 63 staff furloughed. We have and will continue to take the cash flow benefit of deferred payments of PAYE/NI and VAT."

They go on to say
"We are investigating with our Bank potential support under the CBILS Scheme. With more than £2million of available cash and substantial recurring revenue base Trakm8 will manage the cash position carefully into the medium term as the duration and the severity on our markets of the effect of Covid-19 becomes clearer."

But how much of that stated "more than £2million of available cash" is actually for
PAYE/NI and VAT payments? So it really isn't £2 million of Trakm8's cash is it? Some of it will be the governments cash held onto by trakm8 for whatever purpose.

"However, Covid-19 impacted the Company in the last two weeks of the year, delaying hardware shipments and contract awards with our Fleet customers, compounded by installation companies unable to work to install into our Fleet customers."

No hardware shipments and no fleet installations, so where's this belated cash that trakm8fan talks about coming in?

On a happy note we the taxpayer are now paying a significant amount of Trakm8's wage bill. However I bet slimy John W hasn't taken a wage cut.

[trakm8fan] 27/4/2020 16:51

The Horned Eagle explained it earlier. They made an extra 1.4m of profit in H2. This would have required making product and selling it. A lot of product obviously. And if this volume is continuing or increasing then they need to make more and more. Blonde is quick to point out that in the insurance game most people only stick for 12 months. So all the new clients need a new gizmo manufacturing and shipping out to them. This is happening constantly. Make gizmo and ship. If volumes increase they need to make more. They need to buy in more components. I'm struggling to understand why I need to explain this.

If your local donut shop suddenly won a deal to supply lots of local businesses with more donuts then guess what they would need to make more donuts. Thats simple right but what if their machines are maxed out to capacity. Then they need more machines. What if they dont have the money to go out and buy these machines. Then they lend the money. The new donut customers are only paying after 30 or 60 days so they have less cash coming in for a while than is going out.

With trakm8 subscription or SaaS model this is more of a problem for cash flow as you dont get your money till further down the line. So donuts is a bad example but the humour was not lost on me.

[dave2608] 27/4/2020 16:11

I'll add, it's anyone's guess as to whether they've had to compromise on margins merely to tread water with revenues. There's lots of competition out there.

[dave2608] 27/4/2020 15:46

OK trakm8Fan if we accept your argument - which I don't - of the sales being done and the cash flowing in later, then where are these sales? They're not indicated in the revenue figures which have totally stalled. This after falling off a cliff in y/e 2019.

Also if this was merely a temporary cash flow problem as you're suggesting then as EpsomSalts1 pointed out in post 4620 then why wouldn't Microlise help them out during this period? After all they are 20% owners. I'm sorry but it just doesn't stack up properly.

[dave2608] 27/4/2020 15:46

OK trakm8Fan if we accept your argument - which I don't - of the sales being done and the cash flowing in later, then where are these sales? They're not indicated in the revenue figures which have totally stalled. This after falling off a cliff in y/e 2019.

Also if this was merely a temporary cash flow problem as you're suggesting then as EpsomSalts1 pointed out in post 4620 then why wouldn't Microlise help them out during this period? After all they are 20% owners. I'm sorry but it just doesn't stack up properly.

[trakm8fan] 27/4/2020 13:35

Dave - cash flow - remember cash is king. Just because they have made a profit doesn't mean they have that cash in yet or that they didn't need more cash sooner to buy parts to manufacture goods for sale which they have not yet been and will not be paid for until sometime. If you were bringing on new customers and these customers were warning you that they will need x thousand units available to order and you know that units will take you 6 weeks to manufacture at a rate of 5000 per week and the component supplier has a lead time of 6 weeks then surely you can see that you need 12 weeks minimum. Their supplier may need payment in advance or soon compared to customers who may not pay for 30 or 60 days. in summary you often need more operating cash to furnish new contracts with larger volumes. Everyone knows that.