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......So to you just joining the party I have been stating this was on the cards for nearly 3 years.
To the idiots who questioned my motives and attempted to 'muddy the waters', i hope you are pleased to have assisted in the loss of other investors cash.
The issue as I stated over, and over, and over again was the cash flow situation. This was (and still isn't) understood by many investors.
The very minute the clawbacks came from the suppliers, the business fundamental changed and extreme steps were required at this point. All non-profit/revenue generating areas of the business needed to be stripped back at this point.
The original business received income upon CONTRACT ACCEPTANCE with the supplier. This changed to 7 weeks POST LIVE date. This drastic change meant that staff could hot target, month in, month out and not actually generate any revenue.....but still be paid salary.....remember contracts can be agreed/renewed up to 2 years before the current deal ends.... but it would still mean £0 in the bank for 2 years.
This business model CAN work if built 'bottom up' e.g. sales staff in place first, once revenue received (not just recognised) then infrastructure could be built e.g. marketing, hr, legal, admin, health and wellbeing, subsidised canteen, company vehicles, Christmas parties etc etc.
The bloated infrastructure remained in place and did not adapt to the changes in how the business operated.
The initial issue was caused in part by the former CEO but his successors had over 2 years to rectify this matter and did nothing.
Their answer was to add additional revenue streams that had smaller margins but shorter journey time from sale to revenue.
They ended up diluting the brand and becoming a 'jack of all trades'. When they attempted to sell merchant services in November it was a huge red flag that cash flow was the main issue....I raised this and got shot down.
"Oh the order book is worth too much"
"Oh the market cap is only £4million"
"Oh it must bounce back"
"Oh it will be 20p by christmas"
Where are you all now?
Morons
In 2012 I worked there unfortunately and it was obvious then what they were doing, glad I left after 10 months, sometimes you have you take a job to get over a short period of difficulty!
The cash payments to staff in placing orders with certain suppliers, the lying and uplifts taking place and the start of extending the time you would call people ahead of an end date.
There are many more examples of the short termism for quick profit.