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By Steve Moore | Thursday 9 August 2018
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.
Having IPO’d at 4.5p last week, shares in ‘restaurant yield management platform’ company BigDish (DISH) yesterday - on the back of a “BigDish UK Growth Strategy” announcement - closed up at 5.375p; Good news as this was a UK Investor Show Dragon's Den pick from myself…
As Darren included HERE, having initially been serving South East Asia, the company recently purchased a similar Bournemouth-based offering, TablePouncer. It now updates on a planned three-phase UK launch and growth strategy.
The first phase, set to commence in September, is for a beta launch of the UK BigDish platform in Bath. This is then planned to be followed in October by the migration of all existing Bournemouth TablePouncer users and restaurants - 126,000 diners in 2017 - to BigDish. Then there is to be a roll out of the platform “with primary focus on regional towns and cities where the restaurant app market is less saturated”.
The company also emphasises “since our IPO, UK and Irish restaurants have reached out to BigDish to get involved with the platform”, with “the restaurant sector, traditionally a slow adopter of technology, is ripe for disruption”.
This all sounds positive enough - but of course the proof will be in the financials. The IPO document noted “the existing group has carried out limited marketing activities to date while it has focused on developing its technology platforms and further updating the apps and has sought to increase the number of restaurants signed up to the BigDish Platform in order to attract diners. Accordingly, revenue generated since launch of the BigDish brand is negligible”.
That was against more than $1 million of administrative expenses in 2017 (and TablePouncer also slightly loss-making), with pro forma current assets over liabilities circa $2 million. I selected this as a Dragon's Den pick for the speculative upside – and the latest share price reaction supports that thinking. However, re. longer-term investment potential, I just continue to monitor at this juncture.
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