Wynyard Group capital raising?

[BlackPeter]

The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

Actually just marked them in my director database to make sure I don't forget. Interesting to note that WYN have a quite large board (8 members) for a small company, but only 2 of the current directors hold another concurrent board position of another NZ listed company (Murray Horn - Spark, Susan Peterson - Trustpower and Vista). Maybe not enough directors used to continuous disclosure on board?

[moimoi]

To be fair ... the difference between forecast and result is basically only this one chunky deal they hoped to close by end of December but didn't.

Still - unclear why they didn't disclose this fact already on the first business day of 2016. Surely - it can't take that long to find out that Santa Claus failed to deliver the $15 million present they expected?

They say they now expect (hope for?) the deal to come in this year, and if it does than they will be back on track (well - give or take a handful of millions). Still - after this result it must be the worst possible time to ask for more cash. The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

Correct. The announcement reads ""Today, the partner advised that it is unable to confirm that this condition had been satisfied as at 31 December 2015."" The transaction was announced on the 5th of Jan. Its still conditional clearly as at todays date otherwise they would have claimed the conditions are now satisfied.(post balance date as at today's date). Therefore its an expression of interest or some other meaningless waffle. Ask any concrete contractor about ""expected revenue""..They will tell you it don't mean nuffink till the cashola is in the account.....

And @ Emma Jackson Communications Director...Quit calling it ""a market leader in crime fighting and security software""...very obviously its not a market leader with zero verifiable revenue growth for the past 2 years.

More meaningful is the fact that without this contract revenue growth outside of it was nil.

[forest]

What I see is a loss making company, burning cash at an high rate having only limited revenue not even growing it.

If I had a need for their product, I would look for a more stable financial supplier.

I find it very hard to think of something positive regarding WYN as an investment or supplier.

Its a sad development :-(

[percy]

Great gunna's,guna do this ,guna do that.Peter Hoskyns jumped ship,Gill Simpson was guna do this guna do that.Took on huge number of staff.
Sponsored Jade stadium here in ChCh.Guna take over the world.Ruth Richardson onboard.Staff laid off.Listing of Jade put off.Simpson loses control as the whole lot didn't do this,didn't do that."Trouble at mill">
Ex Reserve Bank Dr,Rod Carr brought on board.Dr.Carr leaves to run the university.
etc.etc.
ps.RR has a proven history of destroying shareholders wealth.Refer Tainted Directors thread.

Above posted 14-06-2013.
"A leopard can't change its spots." How very true.!

[Hectorplains]

What I see is a loss making company, burning cash at an high rate having only limited revenue not even growing it.

If I had a need for their product, I would look for a more stable financial supplier.

I find it very hard to think of something positive regarding WYN as an investment or supplier.

Its a sad development :-(

https://www.wynyardgroup.com/en/news...ation-precinct

I know that they're only the tenant but this site has had no development. It won't be ready March 2017, let alone 2016. To me it's symptomatic of their announcing even the most minor progress with trumpet fanfare but failing to provide any follow up detail for things that have stalled or fallen over.

It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

[Ggcc]

Even my rose tinted glasses seem to be getting dirt on them. I can't say I am happy with this result.

[Raz]

https://www.wynyardgroup.com/en/news...ation-precinct

I know that they're only the tenant but this site has had no development. It won't be ready March 2017, let alone 2016. To me it's symptomatic of their announcing even the most minor progress with trumpet fanfare but failing to provide any follow up detail for things that have stalled or fallen over.

It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

The problem for a business like this is that clients will want to do due-diligence on them before they commit to contract..the hurdle gets higher and more problematic with lumpy revenue contracts and missed targets, conservative organisations will be leery.

I never found, even meeting one on one, the pitch by these guys ever was straight forward and clear.

[Balance]

[url]
It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

All up negative cashflow of $51.4m in the last year! Was $21.4 in the first half so second half was $30M.

So they are burning through $5m a month now (assuming they are still generating sales) which is why the $14.9m they have on 1 Jan, will not last beyond March 2016.

Grim situation but they can always do a heavily discounted rights issue - say a 2 for 1 at 20 cents. That will bring in $50m and last another year.

[Baa_Baa]

Grim alright, glad I got out awhile ago, amazihg how quickly it turns to custard with poor disclosure of poor results. I really liked this company but they sure do test convictions. Certain to be a big exit queue at the open or TH lift. Buying opportunity for the fearless, assumes the whiteknight investors want to save WYN and that it can get back on track.

[winner69]

All up negative cashflow of $51.4m in the last year! Was $21.4 in the first half so second half was $30M.

So they are burning through $5m a month now (assuming they are still generating sales) which is why the $14.9m they have on 1 Jan, will not last beyond March 2016.

Grim situation but they can always do a heavily discounted rights issue - say a 2 for 1 at 20 cents. That will bring in $50m and last another year.

Jeez balance, 20 cents is really 'heavily discounted'

Might try 25 cents instead