LPE - Locality Planning Energy Holdings

[galumay]

Unless they are selling the energy and equipment at a loss there has to be a point they become cashflow positive..the next quarterly will be telling.

There is an excuse for every quarter of failure! I hold a small parcel still to remind myself of the lessons here. Management showed an inability to allocate capital intelligently, they were also serial over promisers and very full of hype & spin. I should have sold a couple of years ago when I saw and commented on the warning signs. I would have lost a lot less capital!

My real mistake was buying someone else's conviction - it rarely works and I am guilty of doing it with the same investor more than once. I have hopefully learnt my lesson.

 

[galumay]

As expected LPE increased customers & revenue, but still managed a -'ve OCF quarter in their 4C released today. A perpetually hopeless management with no ability to execute.

 

[greggles]

FY21 Trading Update and Preliminary Results announced today and LPE turning a profit, albeit a small one of $900,000.

A much better result than FY20, especially the 163% increase in gross profit to $14.9 million.

 

[galumay]

Its not nearly as good as it looks, almost all the improvement is due to hedging, I can see why they released the FY results before the 4C - the cashflow statement will show us the true situation. In this case Gross Profit is vapour ware. Its a continuation of the lack of integrity this management team has displayed for a long time.

Its in the fine print, always read the fine print!

 

[peter2]

From the LPE website (after reading a report in the AFR)

What happens to LPE if all customers go elsewhere?

 

[PZ99]

From the LPE website (after reading a report in the AFR)

View attachment 141938

What happens to LPE if all customers go elsewhere?

They've been forced to go back to basics which is the embedded network in strata buildings.

Getting their "on-market" customers off the books gives them access to their hedged cash security of around $30m all up which they can use to retire their debts and be around $6m in the black.

The market liked it (for around 5 minutes) but it's a get out of jail free card for the business with a market cap of just $10m.

* bullish... not holding but worth tipping *