Hi afd, my frst thought was oh no, here we go again, Greenmo...

Hi afd, my frst thought was oh no, here we go again, Greenmo getting another pile of bikes which they don't have to pay for.

My second thought was a bit more positive, more along your lines of, if we are going to have a stake in a customer, better that we pay for it in product, rather than cash.

My third thought was how on earth did they strike the valuation.

The Zenion website says they provide a full wet lease of a CpX for GBP180/mth. The Announcement says they only have a fleet of 620 vehicles at present. Therefore total revenue is currently only c. GBP1.34m per annum. Even if we assumed they had fabulous margins, (and realistically I can't see how they could be making any money yet, given their current scale), that implies a significant multiple to value the business at GBP4m today.

So I can't help feeling like we overpaid (even if we did overpay in kind not cash). I also don't like minority stakes. They can be a big distraction, especially with a business partner who has a record of going broke.

Conversely, it seems that we have secured a sale of c.1400 CpX's over the next 6 months which is sorely needed volume.

Happy to hear your take.