Australia's largest stock trading and investment forum Australia's #1 stock forum

IMS

Click for more information

0.00%

69.0¢ impelus limited

MBE Oversold, page-398

First 398 Last

Share
Profile

Follow
pods

4,099 Posts.

208

09/02/17

12:11

Post #: 22483871
Share

Originally posted by West Coast ↑

Pods, don't take this as sticking up for MBE, I'm not happy at all with them. Below it states the second half they will be cutting DCB Marketing to conserve cash. Revenue could have been higher if they wanted to burn cash but have made the right call. Lucky this business can largely be turned off like a tap by simply reducing marketing spending. Staff costs and office rent etc will need to be paid for still but It looks the marketing spend alone is the big cash burn part of DCB. As I said lucky for MBE they don't have inventory, mainly staff and office costs.

1H group EBITDA met guidance $2.1m with revenue of $27.1m. FY Company's revenue is estimated to be $52m and EBITDA to be between $5m and $6m. Its estimates FY cash at bank as at 30 June 2017 will improve to $12m, (from $8m), sufficiently funding current operations.

Reduction of DCB marketing spend, whilst boosting the Company's cash position, is estimated to impact FY2017 revenue by $13m.

Expand

I agree. Boosting cash is the right idea. I actually thought there would have been a need to raise cash. I guess i was right, but they found another way. So a plus is that they are faithful in not further diluting existing shareholders.

MBE Price at posting: 7.3¢ Sentiment: Hold Disclosure: Not Held
4 Upvote

0 Great analysis

Reply

Top Stories

IMA

Issues emerging as Australian companies tackle critical minerals challenge

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

There are more pages in this discussion • 101 more messages in this thread...

First 398 Last

Add IMS (ASX) to my watchlist