RE:RE:RE:RE:RE:LITE ACCESS TECHNOLOGIES REPORTS 2017 Q4 AND YEAR END “Start-ups generally have a larger GM ...”. No, not generally. That’s the holy grail my friend, as you have been so persistent at pointing out. I would argue that it is the over riding focus of any small cap to improve this number q on q and y on y. And I have found that margin decreases for many reasons, but adding workers and sales staff are one of the biggies. As is adding equipment.
“Costing you more to do the buisiness than actually getting it....”. YES! That is the point Norwood! They didn’t get any significant buisiness to over ride the buildout that they went on (65 employees and counting... but I think it was closer to 75) with the expectation of using. VIRGIN PUT EVERYTHING ON HOLD FOR 6 MONTHS! That is until Actavo signed them directly to 29000 homes. You can’t get hired for big contracts unless you prove that you have the men, equipment and cash to operate as an ongoing buisiness.
-Admin Costs- 450 000 for office supplies... D##k all
-short term wages /consulting/state based payments -1.7 mill
-Equipment (trucks, cutting wheels, etc). 4.7 million
... I’m not going to rewrite the whole thing for you but it’s all in there. There’s not really that much wrong with most of what was released, except for the point of no work. And which everybody knows about. So while there was more people than work as of Sept 2017, there is now 29000 homes to connect ( Plus back bone ) in 2018. Which was what they spent all that money on that you keep mentioning!
Oh yeah, to the extent that the year in the UK can be considered a failure, they still generated 3.6 million in revenue in the UK alone. That’s with no news, except for that crappy little “300 homes connected” release back in the spring. Which was brought up to a thousand 2 months later. So what’s 29000 homes worth Norwood?