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Operational Update released today which was light on detail.
Couple of points that would be of concern for me:
A detailed review of the specialist pultrusion machinery being used in the manufacturing of the BLOCKPal™ pallets has identified that machines from certain suppliers are significantly more efficient when operating at high capacity.
Since IPO, the Company has continued to test and make improvements to the design and construction of the BLOCKPal™ pallet...
The company still seem to be figuring out what the most efficient manufaturing process is. In addition, the actual design and construction of the plastic pallet seems an ongoing process.
RM2 was founded in 2007 so I would have expected this to have been nailed down and known in detail prior to an IPO. How can they market this to large customers if the pallet itself is still evolving?
Note that the share price has traded down further since the Operational Update - now at c. 60p (down 10% from my original post). Given the lack of detail provided on clients and ongoing product / manufacturing process testing I still question whether this came to the public markets too early.
It's a really weird business -- for that size, as a £5m small cap it would be more plausible. I can't help thinking it may just be a tax avoidance/money laundering vehicle thinly disguised as an operating business.
The profiles of the key people involved seem to be more related to finance / investment banking than to plastic pallets (which is after all not exactly a new concept)