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Brave Bison – more ‘wrongster’ from the previous Rightster Group, disastrous profit warning…

By Steve Moore | Friday 17 February 2017

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.

A 10am “Trading Update” announcement from Brave Bison Group (BBSN), a company which has previously proven a wrongster. Uh oh…

“After strong revenue growth of 38% in the first half of 2016 versus the first half of 2015, the second half of the year was challenging, with growth slowing to 7% versus the second half of 2015”. This sees an unaudited adjusted EBITDA (bullshit earnings) loss for 2016 of £1.8 million, with year-end cash of £7 million. And worse follows – with;

“Revenues in 2017 will follow the difficult trend established in the latter part of 2016 and are expected to be substantially lower than those achieved in 2016 due to two material contract losses at the end of 2016 and the potential discontinuance of certain low margin business… It is expected to take a little longer than originally anticipated to achieve profitability.”

“A little longer”? Hmmm. “Material contract losses” and revenue “substantially lower” don’t bode well. Meanwhile, I note the stated cash compares to £9.7 million at the end of March and £8.4 million at the half-year stage.

With sales going “substantially” in the wrong direction, the only migration for this bison looks to be to cash burn central again this year and this, formerly Rightster Group plc, looks to remain a wrongster. Sell.

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