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Share Name Share Symbol Market Type Share ISIN Share Description
Veltyco Group Plc LSE:VLTY London Ordinary Share IM00BYT32K14 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 8.40 8.00 8.80 - 0.00 00:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Travel & Leisure 10.5 -15.5 -18.2 - 8

Veltyco Share Discussion Threads

Showing 526 to 549 of 850 messages
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DateSubjectAuthorDiscuss
08/6/2018
06:52
If people haven't seen this, worth listening to (VLTY presentation to ShareSoc 21/2/18). eSport looks very promising. VLTY is a high risk punt and I agree with consensus that 100-150% upside vs 50% downside. Receivables being the key risk identified by everyone but seems to be a lot of focus on this by mgmt. https://www.research-tree.com/media/veltyco-group-vlty-sharesoc-presentation-february-2018-21-02-2018
leonmoon
07/6/2018
14:18
With Bet90 a key driver of growth in 2018 & the World Cup starting next week, I certainly won't be frightened into selling. Interesting debate though.
xajorkith
07/6/2018
13:31
Strikes me there are too many amateur forensic accountants frightening themselves out of this stock and trying to do the same for others. I'm buying more imho this is a real winner. good luck to those that are in.
czar
07/6/2018
12:29
Aleman, the company said the following: Since the year end, the Group's total receivable balance of EUR14.1 million as at 31 December 2017 has been reduced to EUR4.9 million, all of which relates to the online financial trading vertical (of which EUR3.4 million is due from Altair), as follows: -- pursuant to the acquisition of Marsovia Holdings Ltd ("Marsovia") (regarding the database of users within online financial trading) from Altair, the EUR4.0 million consideration was offset against the full amount of the current loan receivable balance of EUR2.6 million and EUR1.4 million of trade receivables due from Altair, as announced on 25 May 2018 and disclosed in Note 15 of the accounts; -- EUR2.5 million has been settled against a loan provided to the Group by Winslet Enterprises Ltd ("Winslet"), a related party (ultimately controlled by Uwe Lenhoff, a previous director of the Company who is also the Company's main shareholder) for a corresponding amount. The balance of the loan as at 31 December 2017 was EUR1.0 million (see Note 22); -- EUR0.35 million has been offset against amounts due to a subsidiary of Altair, Payific Ltd; and -- EUR2.3 million has been received in cash by the Group from trading operators. The above settlements are against the oldest receivables and as a result of trading since the year end and the ongoing restructuring of the Group's banking relationships, the Group's trade receivable balance as at 28 May 2018 was approximately EUR8.4 million (of which EUR3.4 million is due from Altair and EUR2.7 million is due from Celestial Trading Ltd ("Celestial")). In addition to the current trade receivable balance, the Group also has accrued income in respect of April and May 2018. Since the beginning of 2018, Celestial Trading Ltd has been operating all of the online financial trading brands for which the Group undertakes marketing activities and as a result, the commission due from such activities in 2018 is now payable by Celestial.
rcturner2
07/6/2018
12:25
Well on the revenue side, the way I understand the business model to work (which may be incorrect) is through day-1 commissions and ongoing commissions for attracting new customers. Day one commissions would be recognised upfront whilst the ongoing element would only be accounted for as the end customer spends money (gambles etc) and accrue on an on-going basis. I understand there will be little additional costs of servicing this relationship therefore it should flow through to EBITDA. Costs of winning new customers should be offset by the initial day-one commission payable. Therefore I find it difficult to understand how they can book life-time revenue for customers upfront (given they don't know how much they'll spend and how long they'll be a customer for). For some crude maths, if you look at cash flow before operations of €8.1m and multiply this by 15 (not discounting the cash flows due to growth but a reasonable growth multiple), you end up with c.GBP £105m vs current market cap of c.£60m. This suggests that there is definite value, especially if they can keep up the current growth trajectory, VLTY could look super cheap if you fast forward 2 years. The gorilla in the room for me is the massive £9.3m increase in receivables (which means no cash!) and without understanding the quality of the debtors, why exactly they can't get payment from them and if it's reasonable to assume a level of bad debt etc, how can you assess the quality of earnings? And how can they continue funding the business without raising costly external sources of capital? If the debtors were high quality, banks would be falling over themselves to offer debtor financing facilities. For anyone looking to invest, it would be interesting to hear directly from the management team on this matter. CONSOLIDATED STATEMENT OF CASH FLOWS 31 December 31 December 2017 2016 EUR EUR Cash flows from operating activities Operating profit 7,482,129 1,621,946 Adjustments for: Share based payments 239,084 53,016 Depreciation 1,628 813 Amortisation of intangibles 378,545 86,356 Impairment - 275,011 ------------- ------------- Cash flow from operations before working capital changes 8,101,386 2,037,142 (Increase) in trade and other receivables (9,279,131) (1,761,112) Increase/(decrease) in trade and other payables 146,894 (307,415) ------------- ------------- Cash outflow from operations (1,030,851) (31,385)
twistednik
07/6/2018
11:50
The reason why share price technicals are far better for investment purposes.
matt123d
07/6/2018
11:18
Should be 150p? Maybe or maybe not. How do you value it if revenue recognition is out? Exclude intangibles and receivables are 2/3rds of net assets and some of them have been swapped out since year end (see notes), so I would not value the shares on the balance sheet. If they are booking revenues they have not received yet, they might not actually have operating cashflow or profit, so you can't value shares on the profit and loss account. I'm NOT saying VLTY do have dodgy revenue recognition, just that I have seen companies book revenues too early before and they tend to have unusually high receivables that perform oddly. Reading notes on VLTY's revenue recognition does not clarify the matter enough for me. It might be okay. It might not. The shares look fairly cheap if revenue recognition is reflective of when cash is actually received but, otherwise, booking cash one has not actually got yet can lead to wild numbers. Yet I have seen it happen several times and receivables was the dead canary in earlier accounts before they blew up. Accounts under the new standards this year should make the picture clearer as it tightens up on recognising contracted revenues too early. (I think Carillion did that a bit amongst their other issues.) To be fair to VLTY, they say the new accounting methods should make no material difference. It would have been nice to have seen them adopted already. I was hoping to see high receivables reverse. Instead, unusual things have happened to them. I'm nervous. I sold. All might be fine. I just thought holders should be aware. Good luck.
aleman
07/6/2018
10:31
Aleman - I think you are spot on regarding the risks and the market has discounted VLTY accordingly. Really this share should be trading >150p compared to other fast growing shares. Either the accounting will unravel itself as you suggest (ala Telit Comms style) or they manage to reduce receivables and cash starts flowing which will lead to a huge re-rate. Personally, I always like to see cash generation with a business in this space (that's why I rate XLM highly as it throws off cash and pays a good divi) as proof is in the pudding. If neither a widow or orphan VLTY could still represent a decent investment as I think the upside could be 150-200% vs downside of 50-60%. Still not sure I really understand WHY it's been so difficult collecting from debtors!? Always the risk as well that one of the debtors goes pop and you've got a profit warning. Would be good to hear from any forensic accountants on this board who can cut through the RNS bulls'it and let us know their thoughts!
twistednik
07/6/2018
09:56
Exactly the reason price has been depressed, when all the concerned holders are out then it will be free to rise. Appears to be fresh demand about today so that time might be sooner rather than later.
matt123d
07/6/2018
09:55
Key headline highlights from today's rns... Financial highlights -- Revenue for the year increased 165% to EUR16.2 million (2016: EUR6.1 million) -- Operating EBITDA for the year increased 260% to EUR8.1 million (2016: EUR2.2 million)(1) -- Raised EUR2.55 million before expenses during the period to fund the acquisitions of T4U Marketing Ltd ("T4U") and Bet90 in April 2017 -- Proposing to pay a maiden dividend for the year ended 31 December 2017 amounting to 0.25p per share Operational highlights -- Completed the acquisitions of 51% interests in each of T4U and Quasar Holdings Ltd (running the Bet90 operations) -- Launched Bet90 in July 2017 and achieved significant growth in revenues; the Board expects Bet90 to be a key driver of further growth in 2018 -- Achieved growth in all three major verticals the Group operates in Post year end -- Acquired a 51% interest in Varkasso Limited, a software platform providing crypto wallet solutions based on blockchain technology -- Completed acquisition of a database of active users in the online financial trading sector, ahead of the Group's intended launch of a regulated brand later in 2018 -- Extended existing partnership with eSports.com
pre
07/6/2018
09:48
Be careful with this one. Strange things going on with receivables and cashflow. Acquisitions. Receivables for equity swap. Very small first dividend for a business supposedly generating lots of operating cashflow with low capex and debt. New directors as old ones leave with shares near highs. Notes say 2017 was under old accounting methods. 2018 will be new ones, particularly IFRS 19. (Look at Utilitywise's struggles.) This could have been part of the reason for delay as latest acquisition will be reported under new rules so will have had to be assessed and integrated that way. I'd be nervous of a kitchen sinker coming under the new rules. Booking revenues at the start of contracts can lead to unrealistic profit statements and high receivables in a growing company (look at RMS Tenon, Blue Star) so look at revenue recognition. Is revenue being recognised too early or not? I'm not sure. I have enough doubt that I sold at a modest loss. Good luck. (Edit - altered to Utilitywise after original error, stating Utilico)
aleman
07/6/2018
07:47
Board should be commended on another superb set of results and start of the payment of dividends too. World cup kicks off next week so should see further benefits arising from that too imo. Well done to management, trading now on a bargain PE.
pre
07/6/2018
07:43
A little bit of everything but solid growth, cashflow issues being resolved and they seem on top of them. This comments concerns me but it seems funding is always available from Uwe. The ability of the Group to settle its liabilities as they fall due is dependent on the ability of the customers to settle the trade receivable balances and the Group's ability to finalise the restructuring of its banking relationships during the course of 2018, or to obtain loans from third parties to fund the working capital requirements of the business in the ordinary course. The Directors believe that with the agreements and measures in place, the outstanding amounts will be fully recovered during the remainder of the year.
hatfullofsky
07/6/2018
07:10
The shares have come back on nervous investors dumping because of late results, this company should be trading well over £1, over £2 is realistic imho.
czar
07/6/2018
07:06
Yes, looks like a plan for action for collecting them and restructured banking relationships to address. Trading on a bargain PE if they can get the cash in...
twistednik
07/6/2018
06:54
Superb results & shoud see the share price move far higher.
xajorkith
07/6/2018
06:49
I think this might be why they delayed the results so much. Most of that receivables has now been recovered.
rcturner2
07/6/2018
06:43
Good results!This bit is main concern 'The Group has experienced some operational difficulties in receiving agreed marketing commissions within the online financial trading vertical due to internal processes applied by the Group's banks, however, the Directors have received written confirmation from the operators that the commissions are due and payable to the Group. The Directors started the process of restructuring the Group's banking relationships during 2017, in order to collect the receivables from all trading operators in different locations, without any restriction and the benefits are already being seen and are expected to increase in the coming months.As a result of the above, the Group had a negative cash flow from operations of EUR1.1 million for the year ended 31 December 2017. Following completion of the restructuring of the Group's banking relationships, the Group does not expect to experience ongoing issues regarding the receipt of commissions due to it pursuant to its marketing agreements'But appears to have been addressed and hopefully cash will flow in the future !
twistednik
07/6/2018
06:24
eps for 2017 was 9p with cash in the bank this share price is mental
rcturner2
07/6/2018
06:14
Yes, they read very well. Like the 60% yoy t/o growth.
basem1
07/6/2018
06:10
Excellent results and a dividend
molatovkid
06/6/2018
08:55
Someone still had stock to sell, they obviously worked the price higher when the demand came. Was being offered at 75p yday in the auctions but not today so maybe finally cleared.
matt123d
06/6/2018
07:31
Oh dear Wtf is going on?
nico115
04/6/2018
21:24
Some larger trades going through today to make up the 650k traded. Some supply at 80p to shift then it will be away.
matt123d
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