Good morning!

Good news today that MPs are going to investigate executive pay. I'm going to give some thought to this, and write a letter to them, suggesting ways in which this problem can be tackled. It really is sickening, and a scandal, how many companies are plundered by their Directors for unjustified & excessive personal gain.

This link to the Govt's website shows the members of the relevant committee. So maybe some readers can also write to them, with your suggestions for tackling board room greed?

This appears to be a topic close to Mrs May's heart, so let's hope something meaningful is actually done.



Intercede (LON:IGP)

Share price: 61p (down 33% today)
No. shares: 49.2m
Market cap: £30.0m

Trading update (profit warning) - this company supplies identity & credential management software. They're not having a very good year (ending 31 Mar 2017);


The Company announces that it has had a slow start to the current financial year and is continuing to experience delays in the receipt of anticipated MyID license orders from both new and existing customers.

Consequently, trading for the year to date is below expectations and the prior year.

The Company still has a strong pipeline of MyID license opportunities and is continuing to make good progress in pursuit of its short to medium term strategic objectives.

However, the Board recognises that revenues for the full year are now likely to be lower than last year's record sales of £11.0m.


This is quite a big miss. Stockopedia shows brokers consensus as £14.3m revenue this year, and £18.6m next year, so those can safely be thrown out of the window now.

This probably means the company is likely to be loss-making this year, judging by the historic numbers.

Broker update - I've just received updated figures from FinnCap, which indicates a big drop in profitability. They only refer to adjusted EBITDA, but have lowered expectations from breakeven, to a £2.4m loss this year.

Also, the net cash expected at year end has dropped from £4.7m to only £2.0m. So the comfort blanket of a cash pile is rapidly being burned up.

My opinion - looking back at my previous reports on this company, I've consistently said that it's too difficult to value. There are no reliable profits, and it's always promises of jam tomorrow. I find that…

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