In my opinion this company is a real dog and should not have been listed on the ASX.
I am going to say I told you so and if you look at my previous postings you will see why I have been so concerned and disappointed for Mum & Dad investors who so really wanted to believe in the story of this company.
Fundamentals are all wrong in my opinion. This sort of business is really tough and really hard to make money from, and as I have said before just go and ask any franchise food operators. This is small fledging business but with huge overheads and costs. Paying a, for a better word, a General Manager approximately $360,000 and other senior executives huge salaries with less than 30 stores is very unwise and a recipe for disaster in my opinion.. How many cups of coffee and food pockets do you have to sell to pay for that, let alone the rents etc.
Their figures state sales of $8539 for last quarter YTD $36857. I would say that is flat to declining sales to say the least, and yet they have opened more stores!! It would appear they are not getting as many repeat customers or growing new customers as hoped.
Their figures state cash balance 30 June $2861, previous quarter $5716. So they have burned through $2,855,000 cash in the last 3 months!!!!
Their food & production costs are way too high as are their wages.
Remember they got approximately $3 million from so called sophisticated investors to essentially pay for the I.P.O. costs and then got $15 million from investors when they floated the company.
You do not have to be very clever or a Rocket Scientist to work out with only $2.861 million left in the Bank and no profit in sight things are not looking good.
Patrick 2 & terrier get it but it seems many people do not.
Where is the cash going to come from to prop it up? I would suggest Banks will say no, sorry chaps no money here because the outlook doesn't look good does it? Another cash call from disillusioned shareholders, I don't think so.
The Directors should be ashamed of themselves as in my opinion this is going to cause real grief to many good Mum & Dad investors who have put their trust and faith in them
To me it looks like the end is in sight, don't you think?
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