Plenty of great discussion being made and opinions shared.
I just haven’t seen any conclusive evidence regarding why so much cash is required to be injected right now. We can go back and forth with this, but I will gladly be corrected if in 12 months time our capex on specific increases in capabilities, exceed $4mil. Hold me to account for that. I just can’t see a spend of that amount, in that amount of time. If this is the case then I’ll definitely sit down with Rhino and shout the first couple.
I think that they are spinning a story of expanding rapidly, when it’s realistically going to be expanding at their previously proposed rate. 12 months ago we were running at a loss of close to $1.5mil I’m H1, Had $2.9mil in the bank and hadn’t used the facility. Revenues were at $7m for the H1.
Compare this to our current financials, $2.6m banked, $2m loan facility untouched, expected revenues of $12-15mil, Profit of expected 500k for the HY. We sit $2 mil better off in terms of cash flow compared to 12 months ago and the rate of expansion isn’t overly different. We added 6 PCEs in that time, Nan wants an extra 9 in 24 months, a rate actually slower than what we have previously experienced. So I still haven’t determined, how the expected expansion is far and beyond above what ECS has already been able to do from a financially worse position.
It simply does not add up, there are cracks. Don’t get me wrong, I’m always holding a bias towards my holdings, otherwise I wouldn’t be holding them. But when shizz like this goes down, you cannot help but to discuss it and see if I am missing something clear. Something that nobody is yet able to hands down prove to me. We can keep talking about expansion, growing etc etc, but we were already doing it, rapidly, regurgitating the same plan we already had in place and making it out as if it’s something new that can only be done with a large cash injection is a story I can’t buy.
Expand
