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Indeed the company are progessing , even if things are slower than we would like. Even that seems to rile the Green Boxes - you do wonder why....
Guess what's NOT IN the RNS but was in the email reply.
'the company will come back on fully financed for the expansion and we will achieve our full valuation.'
Full marks for persistency - no idea about the content - thankfully
I only follow this for ole times sake now, but what is the funding situation here before they get the Prospectus through, which as I say, could take a while (or it might not). Do they have enough cash for the next 6 months, either from revenue or financiers?
LW
They've forward sold the prospectus shares and nothing material for the company left in it.
£780k working capital was the last of it, going by all the fundraisers the company was overspending on average $388k per month, so end of June roughly before another fundraiser likely to be needed.
Thanks Bebeto - curious as to how have they have managed that whilst in suspension and without authority to issue shares until the Prospectus gives them that authority?
Fundraisers RNS from 29th September 2023, has this paragraph
The issue of the new Ordinary Shares to trading is conditional upon approval of a prospectus by the Financial Conduct Authority ("FCA"). Caracal continues to progress the prospectus through the FCA.
Lol, It's like another form of communication, I can see 3 green boxes , is this some form of morse code .
I can guess there is an angry statement about Robbie, GCAT going bankrupt and some insults aimed at people calling out crazy behaviour .
Anyway Mr greenbox, I hope you can find peace and happiness.
Wonder how many people really believe if this relisted tomorrow without funding it wouldn't be a massive bloodbath.
PKF are saving everyone at this moment in time.
RM has conveniently DROPPED the part from today's RNS 'come back fully funded for the expansion'.
Careful what you wish for...
We were asking for an official update and they have given it. The next promised update is when they receive a timeline from PKF. Hopefully not too long. Just good to get some official news.
This is a massive call for the auditors. You can't blame them for taking their time.
Taking their time?
Whilst it was an unofficial update can I remind you of the words Robbie used in his email to an investor and shared on this platform:
"We had a deadline of end Feb which we didn’t miss it was missed by PKF and for the month of March and half of April they then did no work on our file - they recommenced work a week ago and are very near completion. I have asked them daily for a timing and they simply refuse to give one they simply say they are working on it. "
I suspect that Robbie might have got into hot water for being so transparent in that email but clearly he was as frustrated as hell with the lack of progress from the auditors. The tone from yesterdays RNS was very different of course as this was a public announcement and Im sure he would not want a fight with the auditors over wording and add further delay - but even then its clear that they are waiting on a timeline from the auditors.
So here is my personal take on it - there is taking time and there is taking no action - and it looks like the auditors are guilty of the latter. We can get into the history and why we got here - we know all of that and we know the reasons - but we don't know the reasons why the auditor effectively did no work on this file for a period of time when we were in suspension and that is annoying.
Very clear where the issues are with the RNS, the fact they now have the independent review complete or submitted (3rd May) means there cannot be much more left.
We aren't far now from requiring the next annual report (I wonder if they just get them to knock that also ) and get it in early
I would dearly love them to get another auditor but options might be limited and possibly better the devil you know having gone through this exercise / pain with bringing this audit team up to speed. One thing is for sure - for obvious reasons we need to see evidence that the company is fully on top of its financials going forward - I hope lessons have been learned but again I don't think this was from incompetence personally - just a lack of resource / cash.
It is exceptionally rare for an auditor to be 'late' unless the audit turns something up. An internal deadline is very different to a contractual one, so best not to read too much into that particular point too unless GCAT are pursuing PKF for breach of contract too.
PKF aren't small. Given the history of GCAT and governance, they may well find it tricky to just replace the auditor. So it wouldn't be overly prudent to change next year. Especially if the new auditor sees the old one getting pelters in RNS's. That's also a slightly odd tactic, given an auditor can resign... If PKF were to resign now, that would be the death knoll for this listing.
Not really sure what is trying to be achieved from this one, it's just more playground antics best kept away from a boardroom.
Daniel - a few observations on your post:
- Its not rare for this particular auditor to be late - they have recent form with another company as per my recent post
- can you elaborate on your point about internal and contractual deadline please - not sure what your point is here
- PFK are not small - they are global - what's your point?
- Agreed they are unlikely to find another auditor in the timescales required - doesn't stop me from wishing they could though
- Death knoll for a listing? No - not if they can demonstrate to the FCA that the auditor walked away and GCAT were not at fault. The role of the FCA is principally to protect investors - why would they take that action to delist and hard investors? The FCA would be in the line of fire and they don't tend to stick their neck out too far.
- Achieved from what exactly?
Thanks
Typo- apologies - hard investors should read hurt investors
Daniel, I totally agree,
I contemplated asking PKF about the email and then thought better of it as we don't want GCAT to be blacklisted by other auditors because of the childish actions of the CEO.
Sorry Robbie, I know you get terribly upset when anybody suggests this shambles is anything but the fault of the company.
1) "We had a deadline of end Feb which we didn’t miss it was missed by PKF" - from the email.
If that was a deadline GCAT set, holding PKF to it only applies if it was contractual. If it was just "we'd like it done by the end of February" then it's not a deadline, it's a hope. If we really want to quote deadlines, the deadline was actually 31st December 2023.
2) My point is that on the one side you have a company with a history of governance issues and poor leadership and on the other side you have a global auditor. I know which side I'd bet on "doing it right".
3) Beyond unlikely.
4) The FCA aren't companies house. Without the late accounts being filed soon a compulsory strike off action will begin.
5) Achieved from the RNS that reads as "it's not our fault, it's them, stop being mean and blaming us". There are far more professional ways to write that one and all this one really does is to **** off the auditors who GCAT need WAYYYYY more than PKF need GCAT.
Anyhow, given Robbie could come and curl a fresh turd out on your carpet and you'd still find a way to blame external factors, I'll leave it there.
'Anyhow, given Robbie could come and curl a fresh turd out on your carpet and you'd still find a way to blame external factors, I'll leave it there'
JC & Co LOL LOL LOL That's so funny and true :)))
Clearly, the auditor and company are not on the same page here. It can't be lost on PKF that the company is suspended pending their audit, and whilst that is not their problem as such, you would expect the situation to warrant a level of priority. To not work on the audit at all for 2 months does seem like rubbing salt into the wound. And if there were to be consequences to GCAT as a result of any such tardiness, would the auditors not carry some liability for that?
Is it possible that the auditors are not happy with the information provided and/or are identifying problems, and won't be pushed by GCAT to sign off something they are not happy with, or work to a particular timescale/pressure in these circs? IF they were contemplating not signing the audit as a hypothetical scenario, for example, because that would be the death knell for GCAT, you would expect the auditors necessarily to take it painstakingly slow because of the consequences of getting it wrong, including for them. All imho and speculative of course!
Daniel - turd? really??
- I am not aware of auditors entering into a contract with a deadline. I see you have totally avoided the point raised by Robbie about no work being done on a file for a number of weeks. If untrue then Robbie could have opened himself up to a world of litigious pain. I don't think he is that stupid.
- your money on a company doing it right because it's a global auditor - big does not mean doing it right - I am sure that there are many sub postmasters that would drive a wagon through that particular arguement. Having worked in FTSE 100 companies I can tell you from personal experience, decisions are made by individuals and individuals are fallible irrespective of the organisation they work for at the time. That can also leave the organisation and leave havoc in their wake. You are naive if you think otherwise.
- Remember the RNS would have been vetted by advisers - you are correct in that Companies House will need to be on board with the situation as well - however if GCAT can show evidence they are doing all in their power then Companies House will not take action on a date alone.
- The RNS will have been vetted for wording - it has to be factual - what would you have said under the circumstances?
- Fully agree - Caracal absolutely need PFK - and they need PFK to deliver - over to PFK!
'Anyhow, given Robbie could come and curl a fresh turd out on your carpet and you'd still find a way to blame external factors, I'll leave it there'
Yes, but it is entirely possible that external factors could legitimately be blamed here (e.g. dodgy meal).
LW,
13th July 2023 RNS, company raised £351k
'The proceeds of the Subscription shall be used to fund the transactional costs for the Kilimapesa expansion funding currently being finalised.'
We're still waiting for this funding and that money would have gone towards the audit and there wouldn't have been any suspension.
Wonder where the money went?
Maybe you should enlighten us Bebeto.
Let's have it in writing exactly what you are saying then the whole world can see.
Come on... Enlighten us.