They went from $198M revenue in 2014 and 50M profit at a margin of 30% in 2014 on a down trend to $163M revenue and $6M profit at 4% margin in 2017. Then to negative once covid hit. They were already headed for the grave, but Covid has made it a certainty and accellerated the process.
They trend was already down for obvious reasons. Ride share. They can kick the can down the road as best they can, but it is inevitable they will fall, just like the taxi industries overseas affected by the migration to ride share.
Get off your computer, go to the streets. Visit a bar and see what happens at all hours of the day. It is ride share after ride share while taxi's twiddle their thumbs watching their profits drive away. Look at the number of electric scooters getting around outside these bars and all over the place. Again more revenue lost in the CBD.
Go to the forums on Facebook for Taxi drivers. Read what they are saying about their incomes. They are on the breadline.
You will be surprised when in the downtime from Covid the drivers will not be going back to that lifestyle and will have made other arrangements as what they have been doing is unsustainable. Likely been working under the rideshare system as the Taxi drivers are having to work 50% more to make ends meat due to the lack of volume.
The ruling is the UK court, not Australian court. Australia better be quick smart (but they have bigger priorities) or A2B will fail before they can make any wage progress for drivers as the UK has. Australia has no interest in helping the industry. They are even contributing to it forcing A2B to reduce their fees. They have no interest as if they fail, there is a vaild replacement there anyway to service the demand.
They are consuming cash at a rate that does not give them much time before they will be starting to draw on preapproved finance. The risk is extremely high that if their line of credit they currently have is pulled due to risks seen by the financer, that will be it for them. They won't be able to raise the cash on market, just look at their daily trading volume. There is not enough interest for private placement. There isn't enough juice in the lemon to promote a cash raise as well. No juicy story to tell.
Risk risk risk is all I can say. Go to the casino if you think this is going to win long term, you will have better odds.
Look overseas. We always lag overseas and are also one of the fastest adopters of new technology in the world (when it eventually arrives). So I am surprised they have lasted this long.
Adding to my short on decent up days why they last (the volume makes it hard to at times though).
A2B Price at posting:
$1.18 Sentiment: Sell Disclosure: Held
