i still don't understand how people are worried about the directors selling such that it will have a detrimental effect on the SP. just understand that they wouldnt do that, this is their company, they put their houses on the line it's their livelihood.
i was in contact with Ben recently and had a great response to a few of the questions i asked. i've roughly pasted below what was asked and said (answer in italics).
point to note, business has been operationally cashflow positive since July, launch of LEN + other asx costs have delayed the re-portable cash which is why the 4c's still appear not operationally positive
1. Clarity around when operational cash flow positive occurred:
- LEN had a small impact on the cash flow of the consolidated entity, yet LPE retail arm has been operationally cash flow positive since July 2017, the consolidated cost with ASX and associated running expenses have delayed the reportable cash.
2. Can we expect further forecasting and reporting inline with October monthly update:
- We anticipate more guidance on forecasting and are looking to have improved reporting as we move forward. Monthly resolution on operational uptake is becoming difficult with volume reconciliation taking longer into the subsequent month as we build scale, case in point we could not get any volumes for December due to metering Coordinator changes as part of the Power of Choice changes in the Market.
3. Can you confirm if monthly updates will continue or will it all be consolidated into quarterly reporting:
- As above, we will always try to do monthly, yet new volume in a large wash of volume required reconciliation and settlements to occur these take some days after cycle to ascertain. I had to realign the expectations of shareholders due to the demand for the report early in the month, I think moving forward I will have no choice but to move to bi-monthly or quarterly.
4. Clarity around how under contracts are progressing and if any intention to ramp up conversions:
- We have removed the “under contract” from our guidance for two reasons, one: it created confusion as to revenue generating volume and sometime volume, two: With the sheer volume of sales and broad variation in site volumes it was not an accurate measure in energy Volume (MWh or GWh). Our delivery time still remains at circa 16-20weeks, yet some sites may be 300MWh and some 3GWh, having disseminate this in start to finish is far too difficult to line up.
5. LPE operates at approx. 18% gross margin, LPE also re-coups the conversion capital costs over the life on the contracts which equate to roughly 7% of the receipts of customers which would in turn increase your gross margin to 25% - can this be confirmed:
Capital recovery is isolated from GP, it is included in total revenue as the amounts are included in energy accounts. The GP is based solely on energy purchase and energy sales, not capital recovery.
My understanding around point 5 is that capital recovery is not included (hence he says isolated) in the 18% gross margin which is why we are continually seeing their gross margin at 25% in all there financial reports. @olderwise also thought this
He also mentioned that they are well in advanced discussions with a mature lender and will have something to market once they have a draw down date. They are somewhat gunshy after the money tech issues although this new lender is apparently at a much more mature level
jan 4c should see this get up as im cnofident it will be CFP operationally. i also think this should never have got pumped past 3c, that was probably brokers doing, which has subsequently caused a lot of anguish among holders who bought in too high
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