Widecells Share Discussion Threads

[catch007] 13/6/2018 15:35

Balance1 totally agree and salaries paid should be fair remuneration not executive pay until the company can deliver sustainable and increasing profitability to the benefit of its shareholders.

[balance1] 13/6/2018 13:06

The board needs to get away from the notion that they are salarymen. This a service company venture with the objective of turning a profit as soon as possible. The board is there to represent the interests of shareholders, not to create jobs and a corporate culture for themselves. I think this is the core of what has gone wrong. The chairman of the remuneration committee is a chap called Malcolm Glaister, who looks highly experienced and capable. Perhaps he could address the AGM and give us his views on a new remuneration policy (perhaps sweat equity only and bonuses solely related to revenue?)

[catch007] 13/6/2018 11:39

Cash is king and they have just enough to get by in the near term after that its another crisis. A strong RNS is needed quickly confirming some income whether it be grants, partner funding or sales contracts.

[imjustdandy] 13/6/2018 09:12

Think they have sales in the bag. Wouldn't have got £2m away without disclosing sales orders to placees. Waken up man

[longshanks] 13/6/2018 08:22

I don't see it as being fully funded. They have some sticking plaster cash that will clear existing debts, but with £50k revenues last year and no indication that trading is better now, they will quickly run out again.This will sink in time. Pity as it is a good idea, just badly orchestrated.

[imjustdandy] 13/6/2018 07:38

Placing agreements signed. Company now fully funded .

[imjustdandy] 12/6/2018 17:53

Through 8p by month end.

[imjustdandy] 12/6/2018 08:05

Good entry price here without a doubt

[purple11] 12/6/2018 07:53

money creamed from the placing....

[imjustdandy] 12/6/2018 07:50

183,000 pounds of Director purchases is a good commitment.

[imjustdandy] 12/6/2018 06:07

£183,000 Director purchases. Directors of the Group have participated in the Bookbuild, collectively subscribing for 6,100,001 Placing Shares at 3 pence per share for a total of GBP183,000 out of the GBP513,000 committed. The net proceeds of the Placing will be used to expand the Group's core end-to-end stem cell services as it looks to build its revenue profile.

[imjustdandy] 12/6/2018 06:05

WideCells Group CEO, João Andrade, said, "With this Placing and Bookbuild receiving subscriptions to raise gross proceeds of GBP2 million, which includes continued support from institutional shareholders, we are delighted that investors continue to recognise the strong value fundamentals of our business, which we firmly believe in, as can be indicated through a number of Directors participating in this Placing. Our focus now is to drive uptake of our innovative portfolio of stem cell services and ultimately build revenues as we embark on a new phase of growth. We look forward to providing further updates in due course."

[catch007] 11/6/2018 20:07

I am struggling to see a long term future here.....thankfully my exposure is relatively limited. There doesn't seem to be a cohesive compelling strategy the cash call is all about give us more money to survive or good night.

[balance1] 11/6/2018 14:46

The company said it is going to "cut back on all discretionary expenditure to conserve cash". In 2016 the board paid itself £347,372. In 2017 the board gave itself a 100% pay rise to £715,467, including £104,000 to the Chairman, and over £77,000 in bonuses (for what, we all have to wonder?). This was during a year when the company became technically insolvent. I wonder if the board considers the money it pays itself "discretionary expenditure", and if it will be cutting this back to 2016 levels (or preferably below).

There is no way this company can come back to market until it starts booking significant revenue. The market has called the company out. It will be good to know exactly how they will be spending this £2m just raised, and how long they will make it will last.

[euclid5] 11/6/2018 09:44

In order to assist it with managing its current working capital requirements, the Group has:

· since 1 January 2018, arranged interest free loans from Directors of approximately £120,000. Such loans are repayable on demand after 1 July 2019;

· negotiated payment terms with existing trade creditors;

· negotiated terms with its banks to extend its facilities; and

· revised its current growth plans downwards and cut back on all discretionary expenditure to conserve cash.

[escapetohome] 11/6/2018 09:09

Had a look but staying away for now, will investigate further interesting area.

[pictureframe] 11/6/2018 09:02

Another gravy train stock

[balance1] 07/6/2018 10:09

The story of these preliminary accounts, and the collapse of our investment, is that the company allowed its expenses to get out of control in 2017, when it was bringing in virtually no revenue.

Admin costs ballooned from £1.2m in 2016 to £2.8m in 2017, when revenues were just £50,000. Consequently, the company ran out of money. Neither the Chairman nor the CEO bothered to mention, explain or expand on this in their letters to shareholders.

Neither is there much explanation in the notes to accounts. We are told that the costs of "supplies and external services" grew from £0.6m to £1.5m. And that "sta cost" grew from £0.6m to £1.2m. What the heck is "sta cost"? some kind of misprint? "staff costs" perhaps? Were these guys doubling their salaries as revenues failed to materialise and the company plunged into minus cash? what were all these "supplies and external services"? Were they spending a fortune on consultants and flights?

Looking forward to seeing the 2017 remuneration breakdown in the full annual report, and a breakdown of the £1m+ they spent on external services. Shareholders will obviously be looking for full transparency in the final annual report. If there is a reasoned explanation, let's hear it and be shown the details.

More importantly, what does the Director's 12 month forward plan look like? How far are they going to stretch the £1.47m they have raised? What will "sta cost" look like in 2018 (and why wasn't this reduced in 2017?). Are all senior staff coming off their salaries until revenue can support it? How many of these people, and costs, are directly involved in bringing in frontline sales? A company of this size should be able to keep going for two years on £1.5m, not just until the next 12-month funding window.

Are we just going to be fed yet more of these big picture gushing announcements, or is Widecells now going to be run as a business?

[euclid5] 06/6/2018 19:31

wonder how many shares the board bought in this placing

Good point Balance1, think the CEO would not be trusted in light of what happened

[balance1] 06/6/2018 16:19

The Chairman's letter fails to mention the massive destruction of shareholder value through the collapse of the share price. You would have thought the Chairman's review would explain why the company completely ran out of money, despite being fully funded up to its headroom limits, and how he will ensure this doesn't happen again.

[imjustdandy] 06/6/2018 06:23

We are there on funding. Teathers app says "funding reached". Could be back trading today

[euclid5] 05/6/2018 09:22

DEc 2017 TE results out, but still no confirmation on funding news....but nearly there, we hope, or maybe not!

" Current cash position anticipated to be bolstered through placing and live bookbuild to raise at least ~£1.80 million"

"The Live Market Bookbuild remains open and the Group will update the market in due course"

Htps://www.investegate.co.uk/widecells-group-plc--wdc-/rns/audited-preliminary-results/201806050700062660Q/