By Steve Moore | Monday 15 May 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.
I previously commented on 21st Century Technology (C21) “having admitted ‘liquidity issues’, it’s expensive debt ahoy (it hopes!)”. The company has today made “Contract Win” and “Directorate Change” announcements.
The contract is for two years, with the option of a third “increasing the total contract value to approximately £0.4m”, and “extends the range of services provided to include a complete maintenance and support package for approximately 600 public travel information systems installed in and around bus shelters throughout the West Midlands region”.
The directorate change is the “personal reasons”-move to a reduced role in the company for CFO Glenn Robinson, with fellow Chartered Accountant with related experience from prestige motor dealer Sytner, Nick Lowe, joining as CFO with immediate effect.
Chairman Mark Elliott argues “we have now commenced the next stage in the company's development”, but my previous update here questioned sufficient funding – including with the reported debt financing still to be secured – and with the September half-year results announcement anticipating “a significant loss for the full year ending 31 December 2016”.
The company didn’t bother to update on the debt financing, so it can only be assumed it progressed as expected but overall concerns here were reflected in a share price sliding comfortably below 2p last month. There has since been something of a recovery to above 3p but, with these latest announcements looking to have little impact in the near-term at least, certainly ahead of the greater detail of the full-year results announcement (25th May last year) I continue to consider this a bargepole stock.
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