SW1 0.00% 1.7¢ swift networks group limited

It's clearly good that there is now a definitive plan going...

  1. 1,579 Posts.
    lightbulb Created with Sketch. 1751
    It's clearly good that there is now a definitive plan going forward - to focus on the areas of the business that are most profitable (and are good growth areas).

    And it sounds like Pippa & co is working really hard to turn the business back around.

    However, the hard part for me as an investor in SW1 over the past few years is that I wasn't aware from any of the announcements that the business needed to be "turned around"???

    I was invested in a clearly under priced growing business that was going from strength to strength according to the announcements - with a market cap of a ridiculously low 1 - 1.5 x revenue. Hence I kept topping up as the SP dropped.

    I considered SW1 to be a strongly cash flow positive business with lots of growth areas - until suddenly (and I mean suddenly due to very few updates over the past 9 months) being told by the new management that:

    We are dumping some areas of the business that were announced with pride over the past 12 months (eg hoyts, e-sports, probably luminaire)?
    The number of screens has mysteriously decreased over the past 9 - 12 months, but we somehow still managed to pay out the second tranche of performance shares?
    We have spent millions on updating our product, and we still need to spend a few million more to develop offerings that are better suited to each market segment? I literally can't believe that this fairly obvious process was not already done to a high level by previous management?
    Despite apparently being cash flow positive for a long time (at least the past couple of years), we have now actually had to use some of our debt facilities, and we have now also had to go to the market for more money via Convertible Notes.
    After a relatively small 11% rise in revenue last year (relatively small % increase given the relatively small revenue base to begin with), we are now expecting growth to slow this financial year.

    After just now being told all of the above, plus the fact that our expected EBITDA of around $5.5m suddenly reduced to $2.36m (with a negative EBITDA in the second half & a nett loss from continuing operations still up around $7m for the 18/19 financial year), it is now pretty clear why the SP has been smashed over the past year or so.

    I am still holding a significant amount of shares, but I am really disappointed in the way that this has unfolded - and I will only continue to hold if the communication improves significantly going forward.

    At least that way we can all make better informed purchasing / selling decisions.

    Sorry for the long post, and I am really hoping that things improve here soon.
 
watchlist Created with Sketch. Add SW1 (ASX) to my watchlist
(20min delay)
Last
1.7¢
Change
0.000(0.00%)
Mkt cap ! $10.99M
Open High Low Value Volume
1.7¢ 1.7¢ 1.7¢ $5.318K 312.7K

Buyers (Bids)

No. Vol. Price($)
1 89636 1.7¢
 

Sellers (Offers)

Price($) Vol. No.
1.8¢ 250020 1
View Market Depth
Last trade - 12.13pm 29/03/2024 (20 minute delay) ?
Last
1.7¢
  Change
0.000 ( 5.56 %)
Open High Low Volume
1.7¢ 1.7¢ 1.7¢ 87201
Last updated 12.13pm 29/03/2024 ?
SW1 (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.