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Brave Bison – developing “slower than originally anticipated” & continuing cash burn. Uh oh…

By Steve Moore | Thursday 7 December 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.


Half-year results saw Brave Bison (BBSN) emphasise “an encouraging start to 2017, bringing us significantly closer to profitability”. Optimism then for a Trading Update today…

“The board expects to report net revenues of approximately £9.1m, ahead of expectations” and “the group continues to move up the value chain, with an increased focus on production and branded content deals, resulting in higher-margin revenues”. Good, good… “Although”… Uh oh.

“slower than originally anticipated, and therefore now expected to take somewhat longer to achieve profitability”. It is attempted to emphasise a reduced “adjusted EBITDA loss of £0.9m which includes a forecast £0.4m foreign exchange loss” (2016: loss £1.8 million) and “£4.1 million in cash and remains funded, on current expectations, to reach profitability”.

The key there though is “on current expectations” - the company having already fallen short on expectations and there is also to be with the full-year results “an update from the new management on the strategy for the business”.

Unsurprisingly on the back of this latest, the shares remain depressed at sub 1p. However, with the cash down from more than £7 million at the end of 2016 and £5.3 million at the half-year stage (both of which times there was also £0.4 million of borrowings and payables outweighing receivables), I continue to avoid.


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