tominchina
08 Aug 2017
Re: I declare this discussion board... Hi Ewan.I hear where you are coming from but in the RNS Final Results date 5th April 2017 they stated,"Our financial performance improved significantly through 2016 and we continue to progress towards profitability. This is being driven by continuing growth in transaction volumes in early 2017, strong gross margins and a healthy cash position."The mentioning of transaction volumes increasing in 2017 and strong gross margins is good enough for me.Never be afraid to be too cautious and maybe your strategy is the best one, but I am holding here. Good luck with your investments.RegardsTom
Ewan Hoosami
08 Aug 2017
Re: I declare this discussion board... Hello Tom. Not sure why the iii boards don't get more traffic but it's good to have some company.I have to confess I took fright at the note from Zeus Capital and sold out for a very modest profit. They're the nomad and financial advisor so their figures should be pretty reliable. Reducing revenue estimates from £3.9m to £3.3m for the full year off the back of the contract extension is brutal, and once you account for the additional investment required by MPAY, there's a real possibility that FY17 could be worse than FY16. Last week's RNS was a weird combination of contract extension/profit warning/jam tomorrow. If other major clients want the same terms for their renewals it could create short-term cash flow problems (most of the cash balance seems to be client money).Now I realise MPAY is taking a short-term hit to grow medium-term transaction volumes and this is undoubtedly the right thing to do, but if the trading update predicts poor 2017 numbers and optimism for 2018 I'm not confident AIM punters will stick around. So here I am on the outside looking in and hoping for an encouraging update to entice me back. Perhaps I'm being too cautious, but afterwards you can tell me what a blunder I've made.See you on the other side!
tominchina
06 Aug 2017
Re: I declare this discussion board... Hi Ewan. Nice to see some activity here."There will be an initial reduction in revenues and margin as both parties focus on the delivery of new solutions and new commercial terms take effect" They are saying that revenues for 2017 will therefore be down on 2016. What they fail to remember is that this new contract is from the top client of 2016. It is JUST ONE CLIENT. We still also have 9 of the other top 10 clients and also the payment wallet side of the business. I was very happy on Thursday to get that 3 year contract with an existing client. I also don't mind one bit that there will be initial reduction in margins either. This client has increased annual transaction value from €25 million to €100 million in JUST ONE YEAR. If our other top 10 clients also follow suit and increase transaction revenues like this new 3 year contract then we are golden. Who cares if margins go down as it will mean total annual transactions values will increase considerably. I can't see the other top clients not increasing volume. They have in the past and I expect they will continue to do so.What's more, our current market cap doesn't even truly reflect what it should be from the 2016 accounts. Other companies in Fin Tech can have their market cap up to 22 times revenue. Also they are loss making. Our revenue in the 2016 accounts is £3.3 million. With a current market cap of £7.5 million we are just over double our revenue. This really is a joke. We haven't even rerated to what we should be from 2016 results.
Dino78
12 May 2015
TV interview with CEO Morning,Please find below a link to a TV interview with Mi-Pay CEO Michael Clay-Dickerson[link]
