Ann: EN1 August 2019 Trading Update, page-105

dont forget that costs are supposedly more fixed when extrapolating out revenue if you believe prior posters and ted. So doubling 1h expenses may not be doing justice.


dont foeget there are huge companies turning multi million dollar losses but with market caps way higher. The point is the market can and does pay for growth potential for loss makers. At 1.5m a month if one extrapolated 8% month on month growth that turns into 3.5m by 12 month. For many companies this rate of growth in a year would be extraordinary. Thats a 2.33 (233%) gain in 11 months. That said nothing progresses in a straight line but i did use 8% month on month growth which is alot less than currently experiencing. And off a 1.5m base. If you believe revenue is 2m monthly once the technical issue is sorted this expands revenue growth even further.

the issue they have is debt and paybles and thereby 3bs. As mentioned they have short time to fix cash flow but if they can keep themself upright this next 4 months and prove q3 and q4 as forecast they may very well rerate. And remember the market is paying on growth at times not necessarily a profitable business at this stage. If yOu gave the market 10, 15% month on month growth consistently it may sit up and take note.