New Sponsor

[Duff]

Possibly about 8.5 mill per year.

Things are never as good as they seem.

 

[Kiwi Eagle]

anyone have this companies logo so we can get an idea of how it will look on the jersey

 

[Berkeley_Eagle]

 

[SilentBob]

Are we getting a new jersey? It's about due for a change, good timing for it.

 

[Kiwi Eagle]

Will look ok on the white jersey but don't know how it will go with our home strip

Bob, i hope we don't change, I would like us to stick with the current home design for good

 

[DVS Matt]

Are we getting a new jersey? It's about due for a change, good timing for it.

won't be changing the home jersey till end of 2010 i think

 

[Rex]

Poetic choice.

Quantum is huge (quantum leap) AND inconceivably small (quantum mechanics).

Sort of like winning the GF 40-0 and still being under the radar of the rep selectors!

 

[byso]

Never heard of them. Hopefully they pay up!

 

[bhot]

At the bottom of the annoucement there's a link to the new jersey.
Members only though.

http://www.manlyseaeagles.com.au/news.asp?newsid=4033

I can't login as I didn't renew my membership :

If anyone knows what it looks like please let us know!

 

[Rex]

Never heard of them. Hopefully they pay up!

I share your concerns byso.

The last audited accounts had a qualified audit opinion on the basis of concerns about the assumption of it being a "going concern".  Here's a quote from their annual report.  Hope I'm misreading something.  Please correct me, someone?  The group made a net loss after tax of $7.7m last year, and prior years also look shabby.

Basis for Qualified Auditors’ Opinion
Going Concern
The financial report at Note 1 (v) discloses that the group has breached a covenant included in the group’s borrowing agreement with its bankers. As result, borrowings from the bank which amount in total to $10,800,000 have been disclosed as current liabilities, and the consolidated entity has a deficit of current assets in relation to current liabilities of $6,363,000. The company has not re-negotiated the borrowing agreement with the bank.
Note 1 (v) also notes that the parent entity at 30 June 2008 had a deficiency of net assets of $5,797,000, and a deficit of current assets in relation to current liabilities of $12,911,000.
In Note 1 (v) the company’s Directors advise that they consider the going concern basis to be appropriate, for the reasons set out in Note 1 (v).
We have been unable to satisfy ourselves that the going concern basis is appropriate for both the consolidated entity and the parent. If the going concern basis is not appropriate the company and consolidated entity may be unable to realise their assets and discharge their liabilities in the normal course of business.

 

[DSM5]

900K per year still doesn't seem that much for the exposure.  80 minutes of TV time, papers, radio and the rest.  Seems cheap.  I would have thought we'd be worth at least 2 Mil.  What do Souths get for their main?  I just hope it's not another Firepower debacle.  The above statement doesn't fill me with enthusiasm (qualified audit). 

 

[Corso_Pete]

Here is my theory. After reading the balance sheet of Quantum it is clear that they are not what you would call a "blue chip" company.

Less than a week ago both Sunday papers reported a rift between Max Delmege & Grant Mayer. Whilst that rift has been soundly rebutted what if Max was less than impressed with the ability of Quantum to meet their committment for the 3 year contract and Max can possibly foresee that he will yet again be required to dig very deep into his pockets!

Delmege strikes me as a man who would not invest his money in a company such as Quantum and just maybe he tried to exert that opinion on Mayer.

Quantums balance sheet can be found at

http://www.asx.com.au/asx/research/CompanyInfoSearchResults.jsp?searchBy=asxCode&allinfo=on&asxCode=QTM

 

[byso]

I guess it's hard to complain after a GF win.

But how hard could it be to get $1mil from a big name for a GF winning Sydney team?

Our sales dept must be f-ed or big corporations in Sydney are up the S**t!

 

[SilentBob]

[img=379x400]http://i131.photobucket.com/albums/p292/Sea-Eagle-Scuba/2009jersey.jpg[/img]

 

[Guest]

The 2008 accounts don't show a pretty picture but the interim results of NPBT of $7.5m is comforting. 

 

[Garts]

The $7 million loss posted includes a $10 million impairment of goodwill, not as bad as it appears in terms of results for 08.

However the balance sheet and working capital do look fairly sick.  However the revenue of the company continues to grow each year, no surprise with that.  Anyone focused on sustainable development seems to be growing each year as more people jump on board. 

 

[Berkeley_Eagle]

hope they have paid up front

 

[missing_something]

A lot of these types of companies are expecting some very favourable legislation to passed early next year, so I think you'll see that Quantum we be doing very well in future and that they'll be no issue with getting the money.

 

[Ryan]

Mate, what do you mean?

Whilst their Net asset position has gone from 12,344,000 in 07, to 4,661,000 in 2008, you can still assume that this is extremely sound in a business that has a turnover of around 30,000,000.

Whilst the company borrowed 12,000,000 in 2007, they have repaid 15,798,000 over 2 years. Therefore cash (current asset will have dropped). Additionally, NON CURRENT term debt financial liabilities went from 19,287,000 in 07 to 5,932,000 in 2008. Not bad eh? For whatever reason though, they increased their OD - obviously needing working capital as payables are $4,000,000 more than receivables.

That said, debtors have risen this year by 30% ! That is extremely good growth. Sustainable? Who knows.

I would love to know what6 the impairment losses - goodwill is. One bad customer? A few? Manufacturing costs substantially reduced, so maybe Quantam decided to shed a debtor who was asking too much? Good move in this case then ! I also believe (without looking at more than two year - so guessing), that this item may be a one off. Added back EBITS the same as 2007, and if this is the case - what a exceptionally good company model.

Stock has doubled, meaning that 2009 may be a sales year, whereas 2008 may have been an R&D (even though R&D expenses are similar to 2007) and manufacture year. It's these types of industries that are notoriously lumpy - and is why you really need a trend analysis over say 5 years to determine REAL profitability / asset strength.

Even if the company funded their long term debt with current debt (hopefully not !), they have still reduced overall debts by around $4,000,000 (I don't know many middle tier companies that have been able to do that in this economy !).

Also, any company that gets $102,000 in Interest on credit funds from the Bank aint doing too poorly either. They also paid off a pre-acquired creditor for about $7,000,000 this year, so had that to deal with.

These things considered, and taking into consideration the risks and mitigants of this Industry, I reckon they are a great company. (I am by no means providing advice on whether to invest in them or not) - just offering an opinion.

I think you were a bit hasty in your comment there Pete.

 

[Ryan]

Also - what makes anyone think that Max Delmege is in such a fantastic position? If I remember right (only reading The Manly Daily by the way for this info), it was the lotto that brought ol' Maxy back from the brink of Bankruptcy those many, many years ago???