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By Tom Winnifrith, The Sheriff of AIM | Tuesday 26 January 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Yesterday I demonstrated that AIM casino posterboy Servision (SEV) was both almost insolvent and in need of a placing ASAP HERE and b) was happy to mislead investors to ramp its worthless shares ahead of a placing HERE. Right now it is ramping as it needs a placing pronto to avoid going tits up. Now I take you back to 2015 to show how it misled the market in a shocking manner to get a bailout placing away.
Servision was slow to report results for calendar 2014. Why? Because without a placing its auditors would not have signed off that it was a going concern. On 22nd May it raised £911,927 ( i.e every last penny that it could) at 5.2p. So on the last day possible without suspension (June 30) it announced 2014 results.
Liar in chief executive Gidon Tahan stated:
I am pleased to announce SerVision's consolidated group financial statements for the year ended 31 December 2014 and to report that our revenue for this twelve month period was $4.2m, an increase of 20% from the previous year. I am also happy to announce that the company generated a net profit of over $180,000 during H2 of 2014 resulting in a reduced net loss of $729,000 for the full year compared to a net loss of $2.86 million in 2013.
Our final results for 2014 show a solid rebound from the previous year and when I consider the opportunities in our current pipeline and the prospects for significant penetration of the Chinese and global police market with a body-worn video transmission solution, I am optimistic that we can continue on a growth trajectory. I have expectations that our sales growth will accelerate once our next generation mobile DVR is ready for market launch and our new sales strategy to generate monthly recurring revenue has been fully rolled out.
That is bullish is it not. It sounds as if - at last - the dog has turned the corner " I am optimistic that we will continue on a growth trajectory". Bear in mind that as Gidon is putting pen to paper on June 29 2015 he must have a dam good idea of how trading has been in the six months to June 30 2015.
His optimism is a good thing because, with yet another new broker appointed on 22 September 2015 (Beaufort) on 25 September 2015 Serrvision was able to raise another £797,684 at 3.5p. And then five days later ( on the last possible date) we have the results for the six months to June 30 2015 and Gidon fesses up:
The Board today announces SerVision's consolidated group interim results for the six months ended 30 June 2015. Revenue during this period amounted to a modest $1,242,000 and our net loss was $1,445,000. While on the surface these numbers appear low (relative to last year's revenue of $1,842,000 and net loss of $892,000 for the same period), I can assure investors that the current results are an inevitable outcome of our transition to a new recurring revenue business model.
Hang on Henry - what happened to that frigging growth trajectory of June 29th 2015?
If AIM was properly run, Nomad Allenby would have quit at that point and this dog would have been booted off the casino a month later. AIM Rules are clear. If there is a material change in trading you must notify the market. But Gidon told investors that his company was on a growth trajectory on 29 June raised cash and only then fessed up that results in the six months to June 30th showed not growth but decline afterwards. It does not matter why, the fact is that Servision misled the market ahead of a placing by not fessing up that the trejectory was not of growth but of decline.
I have warned Nomad Allenby that I have more examples of how Servision has misled AIM investors and issued RNS statements that tur out not to be true and will continue to publish. If Nomad Allenby has any morals whatsover it would, since it already has enough evidence that Servision has breached a raft of AIM rules and is not fit to be a listed company be walking. Allenby already knows that Servision is almost insolvent. Can it really allow the imminent next bailout placing to go ahead until it verifies that investors know the full god-awful truth about a raft of statements made?
These shares are a stonking sell at 2.75p - 3.25p. What is my target price? The NPV of a company with no balance sheet, burning cash and run by a man who misleads investors is zero. The target price is 0p.
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