Wynyard Group capital raising?

[Everwood]

This is not looking good with all these delays "Wynyard will remain in a trading halt until a firm decision to proceed with a rights issue has been made and details have been confirmed and announced, or until market open on Wednesday 24 February, whichever occurs first."

https://nzx.com/companies/WYN/announcements/278129

[GR8DAY]

......understandably a lot bring together EVERWOOD. Looking forward to buy further into the rights issue, if it happens.

[Bilbo]

This is not looking good with all these delays "Wynyard will remain in a trading halt until a firm decision to proceed with a rights issue has been made and details have been confirmed and announced, or until market open on Wednesday 24 February, whichever occurs first."

http://www.sharetrader.co.nz/showthread.php?9161-Wynyard-Group-capital-raising/page84

That release hints of desperation. "Wynyard has a material dependency on raising sufficient further capital by the end of March 2016". I read that as the company can not survive without a capital raise in the next 5 weeks. Maybe they should have managed cash a bit better. Didn't they raise $45m in June last year? Shows how smart Rod Drury has been with Xero's capital raising. Never let things get desperate. Will be interested in where SLI are at also when they announce results on Friday. If they have not moved to cash flow positive they may need to do a CR too, and not a great time for tech stocks to be raising $.

[BlackPeter]

That release hints of desperation. "Wynyard has a material dependency on raising sufficient further capital by the end of March 2016". I read that as the company can not survive without a capital raise in the next 5 weeks. Maybe they should have managed cash a bit better. Didn't they raise $45m in June last year? Shows how smart Rod Drury has been with Xero's capital raising. Never let things get desperate. Will be interested in where SLI are at also when they announce results on Friday. If they have not moved to cash flow positive they may need to do a CR too, and not a great time for tech stocks to be raising $.

Agreed. No matter how good the story and how exciting the industry - this looks like quite inadequate cash management. If they run out of cash in less than 6 weeks from now, than the board must have slept while on watch.

And actually - things appear to be even worse ... their announcement says that a credit facility of $10 million had to be established - i.e. they are already now spending the money they hope to raise:


In the meantime, a $10 million short term credit facility has been arranged with Skipton Building Society (a major Wynyard shareholder) to provide the company with access to sufficient capital, if required, pending receipt of proceeds of a capital raise. The loan will be secured over the assets of the company. In order to draw down on the facility, the Wynyard Board must be confident that the company can raise sufficient capital under a rights issue (or other capital raising) to repay any amount drawn down under the facility.


If they survive this event (I assume and hope they will, but the dilution is likely to be terrible), than the question should be asked whether they have the right people employed to keep the boards seats warm.

[Bilbo]

If they survive this event (I assume and hope they will, but the dilution is likely to be terrible), than the question should be asked whether they have the right people employed to keep the boards seats warm.

The announcement also said "In a separate announcement, Wynyard will today release its unaudited FY15 preliminary results." Have not seen the results yet, but we can only guess that there has been a huge loss.

From the HY results announcement https://www.nzx.com/companies/WYN/announcements/268982 they said they had "$41.1M cash on hand at the end of June" and also said "Wynyard successfully raised $42.6 million in growth capital in July", so that is $83M they had just over 6 month's ago. Have they spent it all?

[moimoi]

From the HY results announcement https://www.nzx.com/companies/WYN/announcements/268982 they said they had "$41.1M cash on hand at the end of June" and also said "Wynyard successfully raised $42.6 million in growth capital in July", so that is $83M they had just over 6 month's ago. Have they spent it all?[/QUOTE]

And now it becomes clearer as to why the institutionals baulked at the $2 placement. Basically out of funds by the end of March. Must be a massive blow out in cash burn with no corresponding material increase in revenue...

[sb9]

https://nzx.com/companies/WYN/announcements/278170

Here they are, just one word..."BLEEDING....."

[blackcap]

https://nzx.com/companies/WYN/announcements/278170

Here they are, just one word..."BLEEDING....."



wow that reads terrible. Ouch. Don't like the operating cost bit in the result for FY15 as compared to FY 14. Right down the bottom somewhere.

[sb9]

wow that reads terrible. Ouch. Don't like the operating cost bit in the result for FY15 as compared to FY 14. Right down the bottom somewhere.

I'm afraid when they come out of trading halt, might see them trade under $1 or even lower...

Feel sorry for the current shareholders, Directors and CEO have lot to answer to them.

[Balance]

They think they are doing a 'XERO'

but maybe

More like 'ZERO'?

[moimoi]

""Wynyard currently expects revenue in the range of $40 to $45 million for FY15"" Announced 18 May 2015.

""Wynyard reported a total FY15 income of $26.3 million (FY14: $26.0m)"" Announced 23 February 2016.

ARE YOU SERIOUS...

And that complies with continuous disclosure obligations...? In the real world conditional contracts mean jack....

Market cap will halve on re-open.

[Balance]

""Wynyard currently expects revenue in the range of $40 to $45 million for FY15"" Announced 18 May 2015.

""Wynyard reported a total FY15 income of $26.3 million (FY14: $26.0m)"" Announced 23 February 2016.

ARE YOU SERIOUS...

And that complies with continuous disclosure obligations...? In the real world conditional contracts mean jack....

Market cap will halve on re-open.

Reminding me of Provenco - big lumpy contracts and inability to close conditional contracts.

One of my bad investments.

[sb9]

Reminding me of Provenco - big lumpy contracts and inability to close conditional contracts.

One of my bad investments.

Glad I sold my small holding last year, booked a small loss. Didn't have conviction to hold after they consistently failed to deliver on their promises.

[GR8DAY]

Reminding me of Provenco - big lumpy contracts and inability to close conditional contracts.

One of my bad investments.


DITTO BALANCE.........what we do, buy more when they bottom? (wherever that may end up)

[Bilbo]

""Wynyard currently expects revenue in the range of $40 to $45 million for FY15"" Announced 18 May 2015.

""Wynyard reported a total FY15 income of $26.3 million (FY14: $26.0m)"" Announced 23 February 2016.

ARE YOU SERIOUS...

And that complies with continuous disclosure obligations...? In the real world conditional contracts mean jack....


And in between talk of great interest from overseas instos, ASX listing, capital raise at $2 etc. Sad to say I got sucked in and bought at $1.69 in Nov. Thankfully only a small holding but don't like my chances of unloading at any value when the halt is removed. I've learnt a few lessons over the past year :(

[winner69]

Reminding me of Provenco - big lumpy contracts and inability to close conditional contracts.

One of my bad investments.

Provenco eh Balance

Those were the days

[winner69]

So H2 cash burn ~$30m - 6 months

Cash in bank $15m December

As somebody said times are desperate

[BlackPeter]

""Wynyard currently expects revenue in the range of $40 to $45 million for FY15"" Announced 18 May 2015.

""Wynyard reported a total FY15 income of $26.3 million (FY14: $26.0m)"" Announced 23 February 2016.

ARE YOU SERIOUS...

And that complies with continuous disclosure obligations...? In the real world conditional contracts mean jack....

Market cap will halve on re-open.

To be fair ... the difference between forecast and result is basically only this one chunky deal they hoped to close by end of December but didn't.

Still - unclear why they didn't disclose this fact already on the first business day of 2016. Surely - it can't take that long to find out that Santa Claus failed to deliver the $15 million present they expected?

They say they now expect (hope for?) the deal to come in this year, and if it does than they will be back on track (well - give or take a handful of millions). Still - after this result it must be the worst possible time to ask for more cash. The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

[RGR367]

Provenco eh Balance

Those were the days

Got to join you there Guys as I was with Cadmus then (CTL in 2008) that got merged with Provenco. Learned a very good lesson there :mad ;:

disc: not a Wynyard holder though if I'm to count myself lucky this time :p

[winner69]

To be fair ... the difference between forecast and result is basically only this one chunky deal they hoped to close by end of December but didn't.

Still - unclear why they didn't disclose this fact already on the first business day of 2016. Surely - it can't take that long to find out that Santa Claus failed to deliver the $15 million present they expected?

They say they now expect (hope for?) the deal to come in this year, and if it does than they will be back on track (well - give or take a handful of millions). Still - after this result it must be the worst possible time to ask for more cash. The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

But back in May 15 betcha that $14m from the contract announced in December wasn't part of their 'forecast'

You could even say that the $40-$45m forecast should have been increased by this $14m - so only 50% of these expectations.

Revenues sure are lumpy eh

[BlackPeter]

The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

Actually just marked them in my director database to make sure I don't forget. Interesting to note that WYN have a quite large board (8 members) for a small company, but only 2 of the current directors hold another concurrent board position of another NZ listed company (Murray Horn - Spark, Susan Peterson - Trustpower and Vista). Maybe not enough directors used to continuous disclosure on board?

[moimoi]

To be fair ... the difference between forecast and result is basically only this one chunky deal they hoped to close by end of December but didn't.

Still - unclear why they didn't disclose this fact already on the first business day of 2016. Surely - it can't take that long to find out that Santa Claus failed to deliver the $15 million present they expected?

They say they now expect (hope for?) the deal to come in this year, and if it does than they will be back on track (well - give or take a handful of millions). Still - after this result it must be the worst possible time to ask for more cash. The WYN directors belong in my view on the "never-ever-again" - list. I definitely will vote against them in any board I have interest in.

Correct. The announcement reads ""Today, the partner advised that it is unable to confirm that this condition had been satisfied as at 31 December 2015."" The transaction was announced on the 5th of Jan. Its still conditional clearly as at todays date otherwise they would have claimed the conditions are now satisfied.(post balance date as at today's date). Therefore its an expression of interest or some other meaningless waffle. Ask any concrete contractor about ""expected revenue""..They will tell you it don't mean nuffink till the cashola is in the account.....

And @ Emma Jackson Communications Director...Quit calling it ""a market leader in crime fighting and security software""...very obviously its not a market leader with zero verifiable revenue growth for the past 2 years.

More meaningful is the fact that without this contract revenue growth outside of it was nil.

[forest]

What I see is a loss making company, burning cash at an high rate having only limited revenue not even growing it.

If I had a need for their product, I would look for a more stable financial supplier.

I find it very hard to think of something positive regarding WYN as an investment or supplier.

Its a sad development :-(

[percy]

Great gunna's,guna do this ,guna do that.Peter Hoskyns jumped ship,Gill Simpson was guna do this guna do that.Took on huge number of staff.
Sponsored Jade stadium here in ChCh.Guna take over the world.Ruth Richardson onboard.Staff laid off.Listing of Jade put off.Simpson loses control as the whole lot didn't do this,didn't do that."Trouble at mill">
Ex Reserve Bank Dr,Rod Carr brought on board.Dr.Carr leaves to run the university.
etc.etc.
ps.RR has a proven history of destroying shareholders wealth.Refer Tainted Directors thread.

Above posted 14-06-2013.
"A leopard can't change its spots." How very true.!

[Hectorplains]

What I see is a loss making company, burning cash at an high rate having only limited revenue not even growing it.

If I had a need for their product, I would look for a more stable financial supplier.

I find it very hard to think of something positive regarding WYN as an investment or supplier.

Its a sad development :-(

https://www.wynyardgroup.com/en/news-events-blog/wynyard-group-announces-new-christchurch-building-in-innovation-precinct

I know that they're only the tenant but this site has had no development. It won't be ready March 2017, let alone 2016. To me it's symptomatic of their announcing even the most minor progress with trumpet fanfare but failing to provide any follow up detail for things that have stalled or fallen over.

It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

[Ggcc]

Even my rose tinted glasses seem to be getting dirt on them. I can't say I am happy with this result.

[Raz]

https://www.wynyardgroup.com/en/news-events-blog/wynyard-group-announces-new-christchurch-building-in-innovation-precinct

I know that they're only the tenant but this site has had no development. It won't be ready March 2017, let alone 2016. To me it's symptomatic of their announcing even the most minor progress with trumpet fanfare but failing to provide any follow up detail for things that have stalled or fallen over.

It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

The problem for a business like this is that clients will want to do due-diligence on them before they commit to contract..the hurdle gets higher and more problematic with lumpy revenue contracts and missed targets, conservative organisations will be leery.

I never found, even meeting one on one, the pitch by these guys ever was straight forward and clear.

[Balance]

[url]
It's easy enough to trace the cash burn too with their new offices in Christchurch, Auckland and Wellington and Sydney. Additionally, Wynyard has "growing offices' (whatever that means) in the United States, United Kingdom and United Arab Emirates. 230+ staff - assuming most of their low end work is on contract and a conservative average salary of 80k - that's $18.5m p.a. in salary alone. God knows what the lease commitments are worth?

All up negative cashflow of $51.4m in the last year! Was $21.4 in the first half so second half was $30M.

So they are burning through $5m a month now (assuming they are still generating sales) which is why the $14.9m they have on 1 Jan, will not last beyond March 2016.

Grim situation but they can always do a heavily discounted rights issue - say a 2 for 1 at 20 cents. That will bring in $50m and last another year.

[Baa_Baa]

Grim alright, glad I got out awhile ago, amazihg how quickly it turns to custard with poor disclosure of poor results. I really liked this company but they sure do test convictions. Certain to be a big exit queue at the open or TH lift. Buying opportunity for the fearless, assumes the whiteknight investors want to save WYN and that it can get back on track.

[winner69]

All up negative cashflow of $51.4m in the last year! Was $21.4 in the first half so second half was $30M.

So they are burning through $5m a month now (assuming they are still generating sales) which is why the $14.9m they have on 1 Jan, will not last beyond March 2016.

Grim situation but they can always do a heavily discounted rights issue - say a 2 for 1 at 20 cents. That will bring in $50m and last another year.

Jeez balance, 20 cents is really 'heavily discounted'

Might try 25 cents instead

[trader_jackson]

I have to say... this company makes Pacific Edge look like a star!
(well you know I believe PEB is already a star, but to some of you, that will be saying something!)

So they are burning through cash like there is no tomorrow, and now they have a credit line with 'one of their large shareholders' (ie debt?) as well??

Various articles in the media reasonably recently made Wynyard look like it was doing pretty well... now those who can get out at a dollar will be doing pretty well

[lastmoa]

Everyone turned 'Chicken Little' now, at he turn of a dime. I'm not throwing the baby out with the bath water just yet.
They have incurred a lot of expense in R&D (not a bad thing) to now have a suute of products.
They incurred hiring expenditure (not necessarily a bad thing) to allow penetration in new locations.
They have $90m contract pipeline.
Sure, I'm not pleased they need more cash (=dilution) but like Xero, you can swim to side of the pool (1 product in Australasia) or try large. Its a long term play for me .... they may make it big, they may not, but at least they're fighting in the arena.

[trader_jackson]

I have to say... this company makes Pacific Edge look like a star!
(well you know I believe PEB is already a star, but to some of you, that will be saying something!)

So they are burning through cash like there is no tomorrow, and now they have a credit line with 'one of their large shareholders' (ie debt?) as well??

Various articles in the media reasonably recently made Wynyard look like it was doing pretty well... now those who can get out at a dollar will be doing pretty well

So further to what I said before, the revenue, if they were to recognize the $14.3m in FY15, they would have hit $40.6m which is essentially at the very bottom of the 40-45m range they gave??

My thoughts for FY16: so they are expecting "in the middle of analysts estimates", so $59.5m revenue for FY16, now lets take off 30-40% to reflect "revenue that can't be recognized" (like they had to do this year) and we'll get the FY16 "real" estimate of about $24m to $28m... not looking great, better to not give to much of an indication at all in my view.

I also look at the NTA... NTA of 15c, although I think this will be less now thanks to the 10m 'credit line' (am I reading this right?), this is far worse (as a % of share price) than most other growth companies, such as PEB.

Best of luck to the holders, when they finally get out of trading halt, price action will be interesting (a bit cheeky for them to release results and all this material information, only to keep the shares locked up, in my view although it is probably just regulation)

[bull....]

85c wow what a discount

[Bilbo]

85c wow what a discount

Maybe wont be a discount to SP after today :(

[Harvey Specter]

I remember doing work for a tech co which did similar large contracts. They closed more than 50% of their business in the last quarter, a large portion of that in the last month. Made the auditors job hard confirming that the contracts had actually closed by balance date. Given these are unaudited, one has to give a litttle bit of credit they didn't just BS to get the capital raising off the ground.

Biggest issue for the company now is will they be able to close further contracts with potential clients reading that they are in a cash crisis. They should be doing a Xero and raising cash 1 year before they need it (ie. 2 years cash burn).

I do hope they pull through (not just as a shareholder) as it would be cool to see NZ competing on the global stage in this area. At this rate, Palantir could probably sneeze up enough petty cash to take them over, and thats if they wanted them.

[Balance]

85c wow what a discount

Not underwritten - can be a very good sign or a very bad sign.

[bull....]

Not underwritten - can be a very good sign or a very bad sign.

not a good sign at such a big discount

[winner69]

Could be good trading opportunities with the rights?

[blackcap]

Could be good trading opportunities with the rights?

If the shareprice goes under 85 cents might make the rights worthless though :( ?

[trackers]

Wow what a shambles. That's an incredible loss, doubling every year with revenue not even remotely close to growing at the same rate. Shocker

[mayday]

traded volume 60.662, down 41%, but can't see any big insto selling their stakes

[blackcap]

traded volume 60.662, down 41%, but can't see any big insto selling their stakes

Interesting how different markets react to these type of situations. If this was Australia, my guess is WYN would be trading at 40 cents and instos bailing. In NZ that does not tend to happen.

[trackers]

Interesting how different markets react to these type of situations. If this was Australia, my guess is WYN would be trading at 40 cents and instos bailing. In NZ that does not tend to happen.

Yeah I thought more or less the same

[goldfish]

Yes still got a market cap of 130 odd mill at 95 cents.
After all the info that has came out I'm surprised it's not half that MC yet.

[Baa_Baa]

.85 right issue is 24% discount off IPO, and 74% less than the all time high price. Jeepers what a ride, even for a spectator!

[RGR367]

.85 right issue is 24% discount off IPO, and 74% less than the all time high price. Jeepers what a ride, even for a spectator!

Yeah and unbelievable that some would still want it at more than 90 cents at the moment. WOW!! Nice to see drama unfolding and we would only put a punt on it for very much much much less than that one. GL to holders then.

[Everwood]

I sold my shares today, I lost about 44% on my investment. I do wish the company well, but I have lost trust / faith in the company.

[bull....]

not tempted still looks rich at 85c

[GR8DAY]

......Sam M. must be feeling a little sick this morning? (along with many others, moi included)

[Harvey Specter]

......Sam M. must be feeling a little sick this morning? (along with many others, moi included)He topped up above $2 didn't he?

[trader_jackson]

Man anyone who did get out at a $1 really would have been doing pretty well...

Management have truly provided the market with an absolute shock... both rights wise and results wise... and the capital raising isn't underwritten? Well, for a growth company like WYN this is scary times... they are quite literally out of cash and have no guarantee (that a underwritten rights issue provides) of getting sufficient cash required.

Reminds me of the time PEB did a rights issue and how 'everyone' smashed PEB then... but at least it was underwritten and they still had cash anyway for a year before the raising!

I agree with several others on here, management have alot to answer for.

[blackcap]

The biggest concern now for WYN is that the share price drifts to under 85 cents and the rights do not get taken up. What do they do then? Either go to insolvency once the cash runs out, or have to do another rights issue at say 20 cents as Balance suggested this morning. I do not see banks coming to the party in a hurry?

[sb9]

The question I've, is it really worth 85c taking into account their performance/results which was surely way below par??? I would stay far away until I see some concrete tunrnaround.

As for Mr Morgan, he has few spare millions floating around don't think this will hurt him much. Plus he's made plenty on Xero not to mention trade me.

[goldfish]

Even if they do raise 30 mill won't they run out again in September? What then?
Huge issues going forward.

[Bilbo]

Even if they do raise 30 mill won't they run out again in September? What then?
Huge issues going forward.

No problem, they have it all under control :) - “We’re bringing forward profitability by focusing on key markets and initiatives. By holding head count, shifting our product development focus and executing other efficiencies we believe this capital raise will be sufficient to manage our working capital while sustaining solid growth,” said Richardson.

One must ask the question if it is so easy to do this why didn't they do it before the cash crisis?

[warthog]

Classic double-down, and in the context of recent flotation and previous capital-raisings.

"holding head count"? Does this put a brake on rapid growth, or were they going silly with their hiring since flotation, thinking they were another XRO?

Good luck WYN holders. You will need it!

disc. not a holder.

[ratkin]

If they cant be trusted to run their own company properly , how could they be trusted with National security?

[warthog]

If they cant be trusted to run their own company properly , how could they be trusted with National security?

You know something's up when Ratkin and the Hog agree on something. :eek2:

[mayday]

NBR is scheduled to talk to Wynyard CEO Craig Richardson this afternoon. We will be asking him about the capital raising programme, but if you have any particular questions you can post them here.

http://www.nbr.co.nz/article/wynyard-announces-rights-issue-th-185266

comments#7, hope it is not too late to post now

[trackers]

Glad when we spun Wynyard off, Craig Richardson headed off into the bright lights with it to be honest

(disc: I disclosed this when it IPO'd)

[warthog]

NBR is scheduled to talk to Wynyard CEO Craig Richardson this afternoon. We will be asking him about the capital raising programme, but if you have any particular questions you can post them here.

http://www.nbr.co.nz/article/wynyard-announces-rights-issue-th-185266

comments#7, hope it is not too late to post now

Real-time information from the NBR…

7904

[fiasco]

This has turned into a bit of a fiasco, hoping for the shareholders sake that the company reduces all the excess fat and focuses on delivering their solution and increase revenue substantially. Directors need to be accountable here.

[Harvey Specter]

To me, the current price looks very cheap IF, and that is a big IF, the revenue forecasts are correct. The question is how does this current cash crisis effect the ability to close deals. If you are a government looking to sign up to a 3 year, multimillion dollar deal, wouldn't this scare you off?

Would have loved a big investor to have said, we dont need to underwrite this offer as we will be buying any that aren't taken up anyway.

[whatsup]

To me, the current price looks very cheap IF, and that is a big IF, the revenue forecasts are correct. The question is how does this current cash crisis effect the ability to close deals. If you are a government looking to sign up to a 3 year, multimillion dollar deal, wouldn't this scare you off?

Would have loved a big investor to have said, we dont need to underwrite this offer as we will be buying any that aren't taken up anyway.

Harvey, begs the question will they allow over subscriptions ?

[Bilbo]

To me, the current price looks very cheap IF, and that is a big IF, the revenue forecasts are correct. The question is how does this current cash crisis effect the ability to close deals. If you are a government looking to sign up to a 3 year, multimillion dollar deal, wouldn't this scare you off?

Would have loved a big investor to have said, we dont need to underwrite this offer as we will be buying any that aren't taken up anyway.

From NBR - http://www.nbr.co.nz/article/will-be-last-time-says-wynyard-ceo-th-p-185329
This will be the last time, says Wynyard CEO. No more capital required after this rights issue; profits to flow in 2017.

Interesting article, and Craig comes across well in it. Would be interested in others take on the article.

[pedro1]

Hi Bilbo, is it possible to screenshot or copy the article for those that don't have access as link only takes us to the headline? Many thanks if you can.

[goldfish]

I find what he says hard to believe.

[forest]

Hi Bilbo, is it possible to screenshot or copy the article for those that don't have access as link only takes us to the headline? Many thanks if you can.


Our strategy of targeting larger contracts is proving successful and we now have a qualified FY16 pipeline which exceeds $90 million and our average deal size has increased significantly. WYN announcement yesterday.

See the word qualified in the announcement, I think that is all investors need to read. This $90mil is a figure of hope.

[mayday]

At its results announcement on Tuesday Wynyard said the agreement had been reached in December but it had that day learned $14.3m of revenue could not be booked for 2015 because end user agreements could not be confirmed as of December 31.
Tim, it is end-February; two months since end-December when the agreement was reached. Can Richardson confirm that the $14.3 million has been booked in or is he waiting for an angel?
Can he indicate what amount of revenue ($ terms) is he expecting/forecasting for the first six months to end-June, 2016?
He is an accountant, a chartered one it seems, and he hasn't heard of cash flow management. It is a shame. A layman knows better.

REPLY REPORT
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by Tim Hunter - National Business Review 41 minutes ago in reply to mahesh muthu
Thanks for your comment. I asked Mr Richardson about this. He said the $14.3m would be booked as revenue in 2016 and would also be received as cash during the year. The company has not specified a half-year revenue figure as far as I am aware, but it said yesterday it expects $90m of revenue for FY16

[mayday]

Wynyard Group’s [NZX: WYN] urgent $30 million rights issue announced on Wednesday will be the last new capital it requires, says chief executive Craig Richardson.

The software company’s shares plummeted when the issue was announced after a week-long trading halt, falling from $1.54 to close yesterday at 94c and wipe more than $80m off its market value.

Despite Wynyard’s desperate cash situation, with its accounts revealing a need for capital by the end of March to remain a going concern, Mr Richardson told NBR its sales pipeline would be self-sustaining from now on.

“We’ve been quite clear to the market that this is the last raise and we are focused on getting the business to profitability,” he said. “Based on our current plan we reach that point in the second half of ‘17. We’ve got some levers we can pull if we have any problems tracking on that but certainly we think it’s a robust plan.

“The intent is we reach that point in 2017 and we still have a healthy bank balance.”

Wynyard’s one for four rights issue at 85c a share followed the failure of a planned share placement to new investors, initially priced at a minimum of $2.

No resignation
Mr Richardson said he had been leading the discussions with those investors.

Asked if anyone’s job was on the line as a result of the cash crisis, he said the board would make those decisions.

“I can only relay the discussions of the last few weeks. Both the board and management have been united and focused on working our way through this. I’m very happy with the way we’ve come together to work our way through a pretty difficult situation so the company comes through in good form.

“The institutional feedback we’ve had is they are confident in the company. They understand the opportunity that’s out there. They think we could have done some things better. They are certainly providing that feedback and it seems to me it’s fair and reasonable feedback but it’s very constructive.

“To the best of my knowledge they haven’t asked me to resign and in fact they’ve said they’re supportive. So I guess we’ll work through that.

“I certainly have no intention of handing in my resignation. I’ve worked incredibly hard to build this company and I still believe we’re only just getting started and we have a very strong future.

“I certainly get a sense there’s a high level of confidence from the institutions we have or they wouldn’t have participated in the rights issue we’ve made.

“If other people have got feedback to the contrary I guess the board will take that into account.”

Australian, Asian investors
Mr Richardson said confidentiality agreements prevented him identifying the investors who pulled out.

“What I can tell you is it’s a mix of investors out of Australia and Asia, and there was some interest out of the United States but we really hadn’t progressed that. So most of the discussions we’d had were in Asia and Australia.

“Those conversations were in really good shape in October and through into November. Then we started talking about valuation and really testing that and got a positive response. Then we thought ‘how do we get this transaction away?’ and thought at the time we could progress that ourselves.”

The investors completed due diligence in early January, he said.

“Then, when the world woke up in January, the global markets had started to change and become more volatile, so some of them had to consider that and still stuck with us through January. Then when the tech sector dropped in late January and early February it just made it really difficult for them to continue.”

Perfect storm
Mr Richardson said the company’s strategy was to develop the capability to pursue bigger contracts and involved planned capital raising.

Although the strategy was working, the company ran into a “perfect storm”, he said.

“What changed as we went into the year end is some of those contracts we thought we would execute in early December and late in the third quarter just got pushed out into the new year. Some of those were unexpected and we have in place contingency plans around those. But it was the perfect storm really in terms of the timing of those contracts. The markets got really challenging literally overnight. So we ended up with a situation where we had $10-$11m of contracts we expected to have signed by 31st of December and we would have had a perfectly manageable headroom in our cash balances, to where things became a little bit tight.”

Revenue guidance
Wynyard’s preliminary result announced this week revealed revenue of just $26.3m for the year to December 31, well down on guidance given on November 12 of $40-$45m.

Mr Richardson said the company had told the market as soon as it knew it would not meet the revenue guidance.

“We knew literally when we told the market. As we went through there were a number of contracts that fell into the new year but that didn’t push us outside our range. As we finished December we had a contract in place and understood it met the revenue recognition criteria. There was some new information we received this week which led us to believe we weren’t in a position to recognise that revenue and it would fall into ‘16. Unfortunately given the magnitude of it, it pushed us outside our range. We’re all disappointed the headline number and where we’ve ended up doesn’t really reflect the work that’s been done in the company and the progress we’ve made, but it is what it is and we have to account for revenue correctly.”

On January 5, after balance date, Wynyard announced it had agreed a contract worth $27m over three years, conditional on its contract partner confirming it had completed commercial agreements with end users.

At its results announcement on Tuesday Wynyard said the agreement had been reached in December but it had that day learned $14.3m of revenue could not be booked for 2015 because end user agreements could not be confirmed as of December 31.

Mr Richardson told NBR the contract was one of several that did not close as expected by year end.

“We thought we were well into the [guidance] range in December or we’d have said something [to the market].”

Investors in the proposed placement had not known of the missed target, he said.

“They haven’t been given any information the market hasn’t been given. Due diligence is an opportunity to meet the team, to understand the business, to talk to directors. All major investors have done that. Those conversations took place from October.”

He defended the choice of a placement to raise capital, although it did not achieve any of its goals of speed, certainty and value.

“We felt like we did the right thing. We’ve accepted the criticism of it and we’ve accepted maybe we should have acted earlier and engaged a banker. We’ve done that. It dragged on because of circumstances outside our control. I’m not making excuses for that because we’re here to run a company and make sure we have in place contingencies for those events, but if you talk to any of the institutional bankers around town I don’t think any of them predicted the magnitude and severity of the market movement in January and February.

“We just had to deal with the information we had at the time. We’ve come out of this okay. There’s a lot of reviews taking place internally around how we made those decisions, but at the time we felt we were making the rights ones.

“The criticism of the process - people will take a view, but the feedback we had in December was that this was a good move for the company.”

Disclosure requirements
Asked whether he was confident the company had met its disclosure requirements, Mr Richardson said he was.

“All I can say is we fully comply with our continuous disclosure requirements. The contract wins we disclose on the NZX, we’re required to disclose because they are material contract wins. This is not a bunch of marketing people sitting around figuring out what they can throw into the market.

“I think you’ll find we’ve been very consistent in the timeliness and descriptions we’ve given around contract wins, the materiality of them. We’ve been following to the letter our disclosure requirements.”

Christchurch office
The company’s new Christchurch office was no sign of corporate excess, said Mr Richardson.

“Well we’re not building it ourselves, we’re renting it. We’re currently sharing with our former company Jade. It’s very tight in that building and it’s challenging getting space in Christchurch.

“There’s nothing ostentatious taking place in this company around expenditure on property.”

Governance review
A review of the capital raising process, as demanded by shareholder Harbour Asset Management, was now under way, he said.

“Of course. For last few weeks been focused on working our way through the problem. This morning at 7 o’clock we started reviewing how we got to this position and working our way through what could we have done better. Obviously pulling that information together internally.

“We’ve got a reasonable understanding of how we ended up here and we’ve got a very good understanding of the changes we need to make and in fact many of those started a couple of weeks ago as we knew what we’d have to do to meet the plan we are asking investors to support.

“One thing I can say about the management team and our board is everybody is very focused on making sure the events of the last few weeks don’t occur again. And realistic about the fact, we have to have a very honest look at how things progressed and if things need to change we’ll change them.

“I’d be silly to say they haven’t been challenging [events]. I’ve been super impressed with the attitude within the company to work through the problems and resolve them, which gives me a great deal of faith that in terms of what we do going forward that we can achieve it.

“It’s an experience you probably wouldn’t want to repeat but I genuinely think the company will come through this and be a better company for it. Sometimes it take these things to focus on what’s really important.”

[Under Surveillance]

I find what he says hard to believe.

I wonder whether he knows/hopes that certain national security-type customers will sponsor a rescue through a takeover bid?

[pedro1]

Thanks very much Mayday

[whatsup]

Looks like the cap raising is assured now that the sophs and existing S Hers have indicated strong support and with the cash issue and over subs that they will be well funded, Im betting that they will take over subs to shore up their bal sheet just in case.
When the ducks are quacking feed them !

[warthog]

Anybody have any idea if WYN have any connections with tin-pot dictators, governments with poor human-rights track-records, oppressive countries and the like?

The hog would kinda like to know, or at least obtain some suitable statement from WYN so the market can be clear on this topic.

Maybe not all investors/traders would be interested, but those with social conscience and/or an interest in human rights will be, and the hog suspects higher ethical standards will be of increasing importance.

[kyanar]

Anybody have any idea if WYN have any connections with tin-pot dictators, governments with poor human-rights track-records, oppressive countries and the like?

The probably have one or two Australian contracts!

[Harvey Specter]

Anybody have any idea if WYN have any connections with tin-pot dictators, governments with poor human-rights track-records, oppressive countries and the like?.they have govt contracts in the US so if trump gets in ....

They obviously keen some clients private but I'm pretty sure they are on record saying they vet their clients. Supporting the tin-pots would have a negative impact on getting 'good' customers.

[winner69]

So the big guys get the new shares 'cheaper'

http://www.sharechat.co.nz/article/703e9f13/wynyard-s-30m-capital-raising-has-freebee-for-major-shareholders.html?utm_medium=email&utm_campaign=Wynyards%2030M%20capital%20raising%20 has%20freebee%20for%20major%20shareholders&utm_content=Wynyards%2030M%20capital%20raising%20h as%20freebee%20for%20major%20shareholders+CID_383d 08865d8ec2bdaa7bf17223c35dfa&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticle703e9f13wynyar d-s-30m-capital-raising-has-freebee-for-major-shareholdershtml

Never mind - you are all in the money

[Andrew]

Are they telling the truth. Skipton certainly are not dunderheads. They know that the issue was not underwritten, and why not. You would think that such a rights issue is always underwritten. They may have been able to get the issue price up. Seems fantastical that Skipton comes in with their loan, on the basis that the company can guarantee the rights issue will be a success, but no underwriter. Then Skipton make a commitment and really gets an underwriters fee, and at a deeply discounted rate. Seems like a lot of skulduggery going on behind the scenes. On this basis alone, as small shareholders really need to go with the flow, it may have been the right time to purchase shares if you could have got them under the $1-00 mark. Ex rights now so there is about 10cents lost. I hate gambling on the market, and this I think is a gamblers share. Skipton may know something that we don't, or their analysis is much more perfect than ours on the future cash flow projections (they must have a member on the board at least 1). Still wont be buying in, there are probably 500,000 programmers in India at this very moment writing cheap programs similar to Wynyards and ready to go on the market at way less than being sold for by Wynyard. The bottom could drop out of their market at any time.

[Harvey Specter]

So is the discount only on additional shares taken up or on their pro-rata right as well. I guess it is effectively an underwrite fee with no obligation - why offer it? And how big a shareholder do you have to be to benefit?

[Andrew]

So is the discount only on additional shares taken up or on their pro-rata right as well. I guess it is effectively an underwrite fee with no obligation - why offer it? And how big a shareholder do you have to be to benefit?

I hope I read that right. When Wynyard issue the news that major shareholders (probably only Skipton) made a commitment to take up the rights and any oversubscriptions, that effectively cost the company the effective underwriting costs. They make mention of oversubscription. What does that mean, what is the extent that Skipton will be buying shares at the discounted rate over and above their pro rata shares?

[winner69]

So is the discount only on additional shares taken up or on their pro-rata right as well. I guess it is effectively an underwrite fee with no obligation - why offer it? And how big a shareholder do you have to be to benefit?

I read (the waiver notice) it as the fee applies to all shares taken up by Skipton (and now others)

[moimoi]

9. The Fee has been offered, and agreed to be paid, to each shareholder that has entered into a Commitment Letter and fulfils its obligations under the Commitment Letter.

Could someone please advise where do we send our commitment letters...?

Ta
Moi.

[winner69]

9. The Fee has been offered, and agreed to be paid, to each shareholder that has entered into a Commitment Letter and fulfils its obligations under the Commitment Letter.

Could someone please advise where do we send our commitment letters...?

Ta
Moi.

I'm sure the letter to Moimoi Funds Management Ltd (with $550m under management) is already in the mail

[winner69]

Announcement out of London

with a mix of SECSaaS, SOC, ACTA, MSSPs and ACTA minimum income to Wynard $3m

Didn't really understand what it meant but must be good

[whatsup]

Is this timing or WHAT !

[trader_jackson]

Is this timing or WHAT !

Probably won't be able to be recognized... ;)

[BlackPeter]

Is this timing or WHAT !

Well - 3.3m over what time frame? Is this $NZ? $US? East Caribbean Dollars? Is the income bookable this financial year? over multiple years? Does the contract still need "ratification"? What conditions are attached to them receiving this income?

Sort of sad that a "market leader" dealing with plenty of the world "largest whatevers" decides to mark an announcement about signing a 3.3m contract as "price sensitive", but I guess at the moment they are grasping for straws ...

[freddagg]

I wonder what their costs are in meeting this contract for 3.3 mil. It may be more than the 3.3.
It is not like Wynyard write the software once and then just sell it an unlimited number of times. There will be a lot of cost in tailoring the software to the clients needs.

[Andrew]

Probably a contract over three years, as all the others. I wonder if there is any clauses in the contracts for the client to "get out" within the period. Or any other penalty or non performance clauses.

[bmrm]

Sort of sad that a "market leader" dealing with plenty of the world "largest whatevers" decides to mark an announcement about signing a 3.3m contract as "price sensitive", but I guess at the moment they are grasping for straws ...

Wynyard doesn't decide what is price sensitive, NZX does. Presumably to do with the rights issue in this case.

[Harvey Specter]

Wynyard doesn't decide what is price sensitive, NZX does. Presumably to do with the rights issue in this case.Agree on both points.

Given the announcement is to the NZX, it should be in NZD unless otherwise stated. The term of the contract is less clear but you have to assume it will not all be recognised in the first year.

[whatsup]

Can someone with more reguralatory knowledge than me answer this question, Can a company raising capital through a rights issue have a two tiered financial structure for that issue as is the case with Wynyards current rights issue?
Why should some investors/participators have a 4% financial benefit over others?

[winner69]

Can someone with more reguralatory knowledge than me answer this question, Can a company raising capital through a rights issue have a two tiered financial structure for that issue as is the case with Wynyards current rights issue?
Why should some investors/participators have a 4% financial benefit over others?

That's why they got waivers from the NZX to do such things

Not a level playing field is it but the likes of us don't matter

[moimoi]

A $2.5M committment fee to raise $30M @ a near 50% discount to last traded price.... For Real?? :-( :-(

Doesn't appear to be of much use to have First NZ Capital acting as arranger of the issue AND ""exclusive financial advisor to the business going forward"" if that is the best they can do.

Clearly beyond anyone on this Board to make 10 phone calls to the top 10 shareholders to see they'd be interested in taking up shares @ half price.

[whatsup]

Ex the rights at the end of trading today.

[Andrew]

Stinks of desperation, bleeding more cash more quickly than they realised and then were desperate.

[trader_jackson]

http://www.chrislee.co.nz/taking-stock

Quite a bit on old Wynyard in here... may be of interest to sum

[whatsup]

Ex the rights at the end of trading today.

RA's up strongly this morning .

[Hectorplains]

Probably a contract over three years, as all the others. I wonder if there is any clauses in the contracts for the client to "get out" within the period. Or any other penalty or non performance clauses.
http://www.sharechat.co.nz/article/50070677/serious-fraud-office-cancelled-wynyard-software-contract-one-year-early.html?

"Mutually decided to end the agreement" even when SFO changed the brief...

[Andrew]

Probably a contract over three years, as all the others. I wonder if there is any clauses in the contracts for the client to "get out" within the period. Or any other penalty or non performance clauses.

Anyone would think I was an insider trader. Not good for Wynyard, when there are alternatives to their software from Microsoft and the other 500,000 programmers writing code in India.

[BlackPeter]

Anyone would think I was an insider trader. Not good for Wynyard, when there are alternatives to their software from Microsoft and the other 500,000 programmers writing code in India.

What would concern me more is that according to the article Microsoft SharePoint does not support the missing feature either ... and the SFO still choose to jump ship (and pay for it).

Why would anybody change from one non compliant tool to another non compliant tool and spend additional money for this change - unless of course, there is another (untold) reason for them not wanting to continue to use WYN software?

[Hectorplains]

Anyone would think I was an insider trader. Not good for Wynyard, when there are alternatives to their software from Microsoft and the other 500,000 programmers writing code in India.

Or when the SFO go with a Microsoft package even thou it DOESN'T meet their needs. Makes you wonder about why they need to ditch WYN before they even found something that could do what they need. Doesn't make much sense.

[Baa_Baa]

Don't read too much into it, the SFO policy wonks decide they want a "unique feature" (new function) outside the original brief to handle "complex documents" (input or output uncertain). WYN say no, "this product wasn't in our roadmap" (i.e. it's unique to SFO, SFO probably don't want to pay much for a be-spoke one-off feature and WYN can't sell it anywhere else). SFO decide in their infinite wisdom it's better to toss the baby out with the bathwater and WYN agree SFO is not good reference customer, there's bigger and better opportunities elsewhere. Subsequently SFO discover a generic MS product Sharepoint can't deliver their "complex document" either. No big deal for WYN that I can see, some customers are better off stewing in their own juices than diverting valuable resources from WYN into developing functions or 'products' that have no repeatable market value.

[Andrew]

So, what are we saying NZ SFO is a one off organisation that does not share any similarities with any other organisation in the world?

It does not make business sense, to enter into a contract, and then to allow one party to back out. That is what a contract is, it binds both parties to the terms of the contract. There is more to this for Wynyard to let the SFO out of the contract.

[Harvey Specter]

Or when the SFO go with a Microsoft package even thou it DOESN'T meet their needs. Makes you wonder about why they need to ditch WYN before they even found something that could do what they need. Doesn't make much sense.
My read of it was SFO already used SharePoint so made a small termination payment (WYN Profit) to end the contract.

[Balance]

No big deal for WYN that I can see, some customers are better off stewing in their own juices than diverting valuable resources from WYN into developing functions or 'products' that have no repeatable market value.

Agree with you 100% there.

WYN has to be very disciplined in keeping to the specifications quoted and contracted to customers - otherwise, it can be a bottomless pit of servicing clients for irrecoverable costs and expenses.

This is where Provenco went wrong and went broke. It landed a few big contracts (sp went up and accolades flowed) but spent all of its resources servicing those contracts until the market woke up to what was happening and stopped funding the sham.

[sb9]

There's a good chance the price could go below the right issue price of 85c going by trading pattern.

[biker]

There's a good chance the price could go below the right issue price of 85c going by trading pattern.

Well I certainly hope so, and I'm a holder.

[blackcap]

There's a good chance the price could go below the right issue price of 85c going by trading pattern.

What would the implications be? Would those "pledging" to support the rights still do so? And if so are they in for the long term or will they look to offload once they have their shares? Interesting times ahead... maybe.
I do not think it will go under the 85 cent mark before the rights are done now, too much at stake and similar to PEB, those instos with stakes will keep the rights in the money..... (just conjecture mind)

[whatsup]

There's a good chance the price could go below the right issue price of 85c going by trading pattern.

What a fool this outfit is giving the instos a special deal on the rights issue treating them with contempt and then expecting the dearly loyal S Hers to "do the right thing " and take up the rights, mugs if you ask me, all shers should have been treated equally, bring on the AGM that all I say !!

[biker]

What would the implications be? Would those "pledging" to support the rights still do so? And if so are they in for the long term or will they look to offload once they have their shares? Interesting times ahead... maybe.
I do not think it will go under the 85 cent mark before the rights are done now, too much at stake and similar to PEB, those instos with stakes will keep the rights in the money..... (just conjecture mind)

They haven't "pledged". They are "bound" and they are being paid collectively over 2 million dollars in shares as "bondage fees"

Auckland, 25 February 2016 - Wynyard Group (NZX:WYN) today announced it has
binding commitments for the purchase of the full $30 million of shares under
its anticipated rights offer.


In connection with the Offer, Wynyard has agreed to issue in aggregate
approximately 2.5 million ordinary shares as fees (representing around 1.38%
of Wynyard's share capital following the issue of New Shares pursuant to the
Offer). Those fees comprise:
(i) fees due to existing shareholders who have provided commitments to take
up all of their entitlement under the Offer and/or fees due to new investors
who have provided commitments to take up any shortfall of New Shares under
the Offer; and
(ii) fees due to First NZ Capital Limited for work in connection with the
Offer and for arranging those commitments.

[blackcap]

They haven't "pledged". They are "bound" and they are being paid collectively over 2 million dollars in shares as "bondage fees"

Auckland, 25 February 2016 - Wynyard Group (NZX:WYN) today announced it has
binding commitments for the purchase of the full $30 million of shares under
its anticipated rights offer.


In connection with the Offer, Wynyard has agreed to issue in aggregate
approximately 2.5 million ordinary shares as fees (representing around 1.38%
of Wynyard's share capital following the issue of New Shares pursuant to the
Offer). Those fees comprise:
(i) fees due to existing shareholders who have provided commitments to take
up all of their entitlement under the Offer and/or fees due to new investors
who have provided commitments to take up any shortfall of New Shares under
the Offer; and
(ii) fees due to First NZ Capital Limited for work in connection with the
Offer and for arranging those commitments.

Cheers Biker, thanks for fixing that up. So even if price falls to under 85 they still have to take up rights? So in effect it is underwritten isn't it. That does bode well for WYN in the short term then, not sure if it bodes well for the insto's doing the underwriting.

[sb9]

There's a good chance the price could go below the right issue price of 85c going by trading pattern.

There we've it, closed at 84c. Dare I say we might see even lower levels in days ahead?

[biker]

There we've it, closed at 84c. Dare I say we might see even lower levels in days ahead?

Could well do but was happy to buy at 84c at the close of play

[biker]

Cheers Biker, thanks for fixing that up. So even if price falls to under 85 they still have to take up rights? So in effect it is underwritten isn't it. That does bode well for WYN in the short term then, not sure if it bodes well for the insto's doing the underwriting.

Yes, and there could be an overhang for a while but if they continue to grow rapidly it may be short lived.

[blobbles]

Potential to catch a falling knife here, what's your number? 80c? 60c? (hopefully not the latter for current holders!)

[Andrew]

Even a dog has its day. I dipped my foot in the water at 85c.

[golden city]

I am on board at 85c

[Baa_Baa]

"Major shareholders of Wynyard Group will effectively get a further 4 per cent discount ... Taking this into account, the price would effectively be 81.6c." http://www.4-traders.com/WYNYARD-GROUP-LTD-15903194/news/Wynyard-offers-major-shareholders-discount-on-rights-offer-21996658/

[Andrew]

"Major shareholders of Wynyard Group will effectively get a further 4 per cent discount ... Taking this into account, the price would effectively be 81.6c." http://www.4-traders.com/WYNYARD-GROUP-LTD-15903194/news/Wynyard-offers-major-shareholders-discount-on-rights-offer-21996658/

4traders is effectively about 3 days behind the news. You snooze you lose. They quote the shareprice at 99c.

[Baa_Baa]

4traders is effectively about 3 days behind the news. You snooze you lose. They quote the shareprice at 99c.

Which totally misses the point, that being with the 4% discount, 81.6 is the base input cost, not 85 as it is now.

[theace]

When do we see the rights issue paperwork in the mail? and when should be sent back by?

[whatsup]

I have received mine late last week and its due back approc 23/3/16.


When do we see the rights issue paperwork in the mail? and when should be sent back by?

[Bilbo]

It looks like we can now buy at 84c on market and the sp could well go lower. Makes me think twice about buying rights at 85c if I can get them cheaper on market (brokerage aside). While I want to support the company via the capital raise I'm not sure it is the best use of my money.

What are others doing?

[whatsup]

It looks like we can now buy at 84c on market and the sp could well go lower. Makes me think twice about buying rights at 85c if I can get them cheaper on market (brokerage aside). While I want to support the company via the capital raise I'm not sure it is the best use of my money.

What are others doing?

THINKING deeply , ! hmmmmmm.

[blackcap]

It looks like we can now buy at 84c on market and the sp could well go lower. Makes me think twice about buying rights at 85c if I can get them cheaper on market (brokerage aside). While I want to support the company via the capital raise I'm not sure it is the best use of my money.

What are others doing?

Its actually really simple. You either buy at 85 via the rights or you buy at 84 on market. I know which one I would choose. Or you do not buy at all and that may be the best bet :) Either way if the share price stays under 85 the rights are worthless and there is no incentive to buy or take up the rights.

[Harvey Specter]

With $30 brokerage, only worth buying on market if buying more than 3000 shares. That number obviously drops if the share price drops further.

With some people able to buy at 80c, its a classic overhang situation.

[whatsup]

Its actually really simple. You either buy at 85 via the rights or you buy at 84 on market. I know which one I would choose. Or you do not buy at all and that may be the best bet :) Either way if the share price stays under 85 the rights are worthless and there is no incentive to buy or take up the rights.


That was the way with TIL after listing, under its original name it went down to .45ish then its fortunes changed and now is $3.50, some shares take a while to come right, Dil was another went down to .20 with all of the officers B S and now $7.00 , better not to miss out on the big $s for a few cents, sometimes we can all be too smart !

[blackcap]

That was the way with TIL after listing, under its original name it went down to .45ish then its fortunes changed and now is $3.50, some shares take a while to come right, Dil was another went down to .20 with all of the officers B S and now $7.00 , better not to miss out on the big $s for a few cents, sometimes we can all be too smart !

What I meant whatsup is that if you hold rights and are deciding whether to take them up, obviously its not worth doing so if the share price is under the 85 cent mark. If the share price was over 85 cents it would be stupid not to take them up. So someone with rights may have been thinking about "buying more shares" by taking up the rights when the share price was over 85. However now as the share price is lower there is no need to buy any shares as the rights are worthless. If the share price recovers as per your examples, then in my example the holder will benefit as they are already a shareholder (by virtue of having received rights).
As far as WYN are concerned, they will get their cash because of the commitments of the instos, so that is not a consideration or issue anymore.

[TideMan]

But by taking the rights, you pay no brokerage.
For ANZ Direct Trade, the brokerage is $29.90 + 0.4%
So this means the total cost of N shares at price p purchased this way is:
Total Cost = 29.90 + 1.004*N*p
whereas if you buy the rights the total cost is
Rights Cost = N*0.85
Setting these equal and doing some math, we get the price when Total Cost is equal to Rights Cost is:
p = 0.8466 - 29.7809/N
For N = 1000; the break even price is 82c
For N = 500, the break even price is 79c
so the smaller the number of rights you take up, the lower the share price can fall before it becomes uneconomic to take up the rights.
But if you want more than 8,759 shares and the share price is less than 85c, you're screwed.

[Snow Leopard]

But by taking the rights, you pay no brokerage.
For ANZ Direct Trade, the brokerage is $29.90 + 0.4%
So this means the total cost of N shares at price p purchased this way is:
Total Cost = 29.90 + 1.004*N*p
whereas if you buy the rights the total cost is
Rights Cost = N*0.85
Setting these equal and doing some math, we get the price when Total Cost is equal to Rights Cost is:
p = 0.8466 - 29.7809/N
For N = 1000; the break even price is 82c
For N = 500, the break even price is 79c
so the smaller the number of rights you take up, the lower the share price can fall before it becomes uneconomic to take up the rights.
But if you want more than 8,759 shares and the share price is less than 85c, you're screwed.

You need to change your brokerage arrangements:

ASB Securities $30 flat-fee to $10,000 then 0.3%
ANZ Securities $30 flat-fee to $15,000 then 0.2%
[ANZ Share & Bond (closed to new guys) is $30 to $10,000 then 0.3%]

So your break even would be 3000 at $0.84 ($2,550 inc brokerage).

Best Wishes
Paper Tiger

[whatsup]

But by taking the rights, you pay no brokerage.
For ANZ Direct Trade, the brokerage is $29.90 + 0.4%
So this means the total cost of N shares at price p purchased this way is:
Total Cost = 29.90 + 1.004*N*p
whereas if you buy the rights the total cost is
Rights Cost = N*0.85
Setting these equal and doing some math, we get the price when Total Cost is equal to Rights Cost is:
p = 0.8466 - 29.7809/N
For N = 1000; the break even price is 82c
For N = 500, the break even price is 79c
so the smaller the number of rights you take up, the lower the share price can fall before it becomes uneconomic to take up the rights.
But if you want more than 8,759 shares and the share price is less than 85c, you're screwed.

Don't forget that current shareholders upon taking up their rights can also apply for additional shares at the rights price ie .85 c

[Baa_Baa]

So, what do we know about what WYN are doing to stem the tide of capital outflow and boost the incoming tide of revenue. Is it clear, like what do we really know that has substance, that the rights issue or on market purchase even at these apparently suppressed prices won't be a pre-cursor to continued losses, further cap raisings in due course, and even more depressed SP? Can anyone answer that?

Disc: I like WYN, and think it should do very well in the medium to longer term. I am also ecstatic that I bailed a while ago way above the current SP, though for other reasons than the company faces now. What bugs me is whether this is the 'all time low', or whether we're just inflating a tyre with a slow puncture and it'll all come back soon enough for a refill.

I'm not sure if people will agree, but to me this f'up with the $2 minimum cap raise and then mea culpa to $0.85 rights issue is a very unsettling sign, that WYN are out of their depth, in governance, capital management, and managing shareholder value. I don't know to be honest, it just feels really bad. I'd be loath to buy .85 and be faced with .35 in six months, or a penny dreadful in a years time.

So what's giving people faith and comfort that .85 is the all time low and it's all upside from here? Facts please, opinions and anecdote count for nothing.

[TideMan]

You need to change your brokerage arrangements:

ANZ Securities $30 flat-fee to $15,000 then 0.2%



Yes my rate is for Internet transactions.
To get your rate, you need to be an "Online Multi-Currency Account holder" whatever that is.

[Snow Leopard]

So, what do we know about what WYN are doing to stem the tide of capital outflow and boost the incoming tide of revenue. Is it clear, like what do we really know that has substance, that the rights issue or on market purchase even at these apparently suppressed prices won't be a pre-cursor to continued losses, further cap raisings in due course, and even more depressed SP? Can anyone answer that?

Disc: I like WYN, and think it should do very well in the medium to longer term. I am also ecstatic that I bailed a while ago way above the current SP, though for other reasons than the company faces now. What bugs me is whether this is the 'all time low', or whether we're just inflating a tyre with a slow puncture and it'll all come back soon enough for a refill.

I'm not sure if people will agree, but to me this f'up with the $2 minimum cap raise and then mea culpa to $0.85 rights issue is a very unsettling sign, that WYN are out of their depth, in governance, capital management, and managing shareholder value. I don't know to be honest, it just feels really bad. I'd be loath to buy .85 and be faced with .35 in six months, or a penny dreadful in a years time.

So what's giving people faith and comfort that .85 is the all time low and it's all upside from here? Facts please, opinions and anecdote count for nothing.

There is no certainty about the future.
If you want facts then they are all in the accounts: they leached over $50M dollars of cash last year - not good.

They say revenue recognition will be lumpy but cash flow is all that matters at the moment, and if/when they need to get the begging bowl out again.

If you have gut rot over a possible serious decline in price then do not buy it.

My opinion is that it is a seriously speculative share.
It is a shame you do not want any anecdotes, I have lots that would make you smile.

:) :) :) :) :) :) :) :)

Best Wishes
Paper Tiger

[biker]

Happy to have had my order at 83c filled today.
Could go even lower after the cash issue is all settled in a few weeks but a whiff of good news, new contracts etc should see a bounce IMO.
I see it as a better company now in a perverse way. Management have learnt a salutary lesson, we have a share price in the low 80s the IP and systems are still excellent, they have cash and there is huge potential.
Yet to be seen if this is the last cash issue as they have stated but at 83c or thereabouts, good value IMO
I also have the short term protection that if there is an early bounce I will take up my rights at 85c otherwise I will let them lapse.

[whatsup]

Posted off today and added double my rights entitlement @ .85 could be a good buy or goodbye !

[whatsup]

Moving off the bottom at last , rights closes Thurs so gives time for doubting Thomases to get on board

[fiasco]

Posted off today and added double my rights entitlement @ .85 could be a good buy or goodbye !


Likewise, will be interesting to see if we get back to 1.20-1.50 range before the debacle started.

This organisation still has potential, and as previously indicated it was a hard lesson for them.

[blobbles]

Not sure you should get too excited yet, 5k shares at 88c does not make a trend!

[mayday]

Breaking new: Bombing attack at Brussels airpor.....

[golden city]

bad news for the people.., but could be good news for company like wyn

[biker]

Happy to have had my order at 83c filled today.
Could go even lower after the cash issue is all settled in a few weeks but a whiff of good news, new contracts etc should see a bounce IMO.
I see it as a better company now in a perverse way. Management have learnt a salutary lesson, we have a share price in the low 80s the IP and systems are still excellent, they have cash and there is huge potential.
Yet to be seen if this is the last cash issue as they have stated but at 83c or thereabouts, good value IMO
I also have the short term protection that if there is an early bounce I will take up my rights at 85c otherwise I will let them lapse.

Have taken up all my rights and applied for 4 times my entitlement, which I expect to be severely scaled.

[winner69]

Have taken up all my rights and applied for 4 times my entitlement, which I expect to be severely scaled.

Does todays announcement imply that ordinary shareholders wont get any more than they were entitled to even though only 75% were taken

It seems to read the shortfall is going to those who 'committed' to making it successful

[winner69]

Does todays announcement imply that ordinary shareholders wont get any more than they were entitled to even though only 75% were taken

It seems to read the shortfall is going to those who 'committed' to making it successful

If this is the case the does the last paragraph of the announcement sort of says if you feel aggrieved dont ring us

" Shareholders who have any questions about the Offer are encouraged to read the Offer Document on the Wynyard website and seek financial, investment, or other professional advice from a qualified professional adviser. "

[zigzag]

A vague and poorly worded statement IMO. Obviously Management and Board still have work to do in the communications area!
If it's all going to the 'committed', why offer over subscriptions to the hoi polloi?

I applied for extra shares, just to make it up to a round number, and I am expecting to get the full amount. That is according to my reading of the statement.

[Harvey Specter]

I applied for extra shares, just to make it up to a round number, and I am expecting to get the full amount. That is according to my reading of the statement.Same and hoping for the full allocoation.

Give they get more from the hoi polloi, than the insto's, as a shareholder I hope we all get our allocation too.

[whatsup]

No scaling. Got the lot.

Well done Biker up on confidence again today @ .93

[BlackPeter]

Interesting article - and great opportunity for a small Australian software firm (NUIX) to promote their products:

http://hotcopper.com.au/resources/small-australian-software-firm-helps-join-the-dots-on-panama-papers.5580/#.VwRQa6R97IU

Pity WYN didn't jump on this ... but at least now we know that there are other small players in this pond ... and some might be even more agile than WYN ...

[Longhaul]

So now the dust has settled a bit, who are WYN's major shareholders?

From what I can ascertain it's Milford, Harbour Asset, Salt, and First NZ Capital. Any others?

[mayday]

- CFO resignation
- The recognition of 14.3mil licence revenue in final step

https://www.nzx.com/companies/WYN/announcements/280630

[sb9]

- CFO resignation
- The recognition of 14.3mil licence revenue in final step

https://www.nzx.com/companies/WYN/announcements/280630

Hmmmm...they mention about trading update in the first few paragraphs which doesn't give you great confidence and CFO resignation buried down in later paragraph? Do people still believe in their story? I'm afraid I'm not one of them.

Disc - held, not holding currently.

[trackers]

"In December 2015, Wynyard entered into a conditional customer contract for software and services totaling $27 million. This includes $14.3 million licence revenue that it has previously announced it expects to recognise in FY16, following confirmation of agreements between the end customer and Wynyard’s sales partner. Wynyard is currently working closely with the sales partner to complete and confirm these agreements."

I don't understand this - Have they actually progressed this at all since December? Its unclear to me

[sb9]

"In December 2015, Wynyard entered into a conditional customer contract for software and services totaling $27 million. This includes $14.3 million licence revenue that it has previously announced it expects to recognise in FY16, following confirmation of agreements between the end customer and Wynyard’s sales partner. Wynyard is currently working closely with the sales partner to complete and confirm these agreements."

I don't understand this - Have they actually progressed this at all since December? Its unclear to me

Exactly as the saying goes, "if you can't convince, confuse" !!! If they put out a statement with no clearer terms as to outcome, its most likely that it may not eventuate or contingent on some other event.

[moimoi]

"In December 2015, Wynyard entered into a conditional customer contract for software and services totaling $27 million. This includes $14.3 million licence revenue that it has previously announced it expects to recognise in FY16, following confirmation of agreements between the end customer and Wynyard’s sales partner. Wynyard is currently working closely with the sales partner to complete and confirm these agreements."

I don't understand this - Have they actually progressed this at all since December? Its unclear to me

Not sufficiently to book it as revenue it seems...

The full announcement more or less read as a revenue warning.

[mayday]

RiskTech100® rankings 2015:
http://www.keypoint.me/Downloads/2015RiskTech100_Chartis.pdf

RiskTech100® rankings 2016
http://www.filedropper.com/risktech1002016rr1523

What delights me, Wynyard is the youngest company among the top 30. (Shame its country origin is classified as UK) The second youngest is Markit which was founded in 2003.

Disc: Hold among the fears

[Longhaul]

Has there been any indication from Wynyard about expected 2016 FY revenues?

[mayday]

Has there been any indication from Wynyard about expected 2016 FY revenues?

Longhaul, click on page 89, you will find this to read:

"by Tim Hunter - National Business Review 41 minutes ago in reply to mahesh muthu
Thanks for your comment. I asked Mr Richardson about this. He said the $14.3m would be booked as revenue in 2016 and would also be received as cash during the year. The company has not specified a half-year revenue figure as far as I am aware, but it said yesterday it expects $90m of revenue for FY16"

[Longhaul]

Hmmm, different from this on 23 Feb? https://nzx.com/companies/WYN/announcements/278170

"In FY16, the company expects to deliver revenue towards the middle of research analysts' current FY16 revenue range of $54 million to $65 million, plus the licence revenue associated with the above deal when that income is recognised."

[whatsup]

Does anyone have any idea what is going on with WYN ?

[Mista_Trix]

Does anyone have any idea what is going on with WYN ?

Massive cash burn, slower then expected expansion, frustrated shareholders, larger players in similar markets with deeper pockets... to name a few.

[sb9]

Does anyone have any idea what is going on with WYN ?

If they miss the target at next announcement, I'm afraid its curtains down!!!

[lastmoa]

Does anyone have any idea what is going on with WYN ?

Nervous sellers will sell. There's be no recent bad news to justify a drop .... maybe a reflection on some people's negative take from Xero? Dunno. People sell for whatever reason and the low vol's don't give me any insight. The upcoming AGM will be interesting though. I am anticipating some long awaited positive news. Not writing it off like some other posteres here .... some people will jump from tech stock to biotech to tech, etc, and not exercse patience.. imho.
They are in a good niche space and have some credible people behind it. Hold fire. DYOR. 8-)

[blobbles]

Nervous sellers will sell. There's be no recent bad news to justify a drop .... maybe a reflection on some people's negative take from Xero? Dunno. People sell for whatever reason and the low vol's don't give me any insight. The upcoming AGM will be interesting though. I am anticipating some long awaited positive news. Not writing it off like some other posteres here .... some people will jump from tech stock to biotech to tech, etc, and not exercse patience.. imho.
They are in a good niche space and have some credible people behind it. Hold fire. DYOR. 8-)

As I understand it, I would be concerned about them not recognising the $27m deal at all. While they came back at the start of the year saying "We won't be able to recognise this in this financial year", I think we all assumed they meant "We might not be able to recognise this at all...". As the deal was a conditional deal on other things falling into place, it sounded a bit iffy. Hence everyone is a little nervous. Revenue guidance will likely be missed this year and without other deals of such significance and none in the past 2 months, it's understandable why people would be exiting. You don't have to be a chartist to not be afraid of losing money when it looks like it does right now!

In saying that, it is very much a share that could bounce hugely on signing of a significant deal, so buying and holding at these levels may not be a stupid idea if you believe management will deliver.

[trader_jackson]

Man anyone who did get out at a $1 really would have been doing pretty well...

3 months on from my post in Feb... Hope those who could, did get out at $1...

[crabs]

I use to be a big fan of what this company was offering, I brought not long after the IPO.
They use to crow about every large contract they signed then they used the excuse that revenue targets were not meet due to untimely signing of contracts. I thought this was plausible.
The following year they reiterated, several times, that full year revenues will be 40-45m but their crowing of signed contracts was nowhere near matching what they were saying. The 6 monthly only had $14m in revenue yet they reiterated $40-45m was still on the cards. 3 months later they were still not announcing/crowing enough about contracts signed so I sold out.
The full year turned out to be a big miss in revenue with the company blaming it on one huge contract that had not fallen into place.....dodgy if you ask me especially given the cash burn.
They then announced to the market that they had mismanaged shareholders funds so badly they had to take out bridging loan until they had done another cap raise.
This really goes to show that the company, despite being in a growth industry, is being poorly managed.
No company thrives with poor senior management:t_down:

[Tsuba]

Actually spoke to one of their software engineers and he said they are a very good company to work with / for and when I asked him what he thought about the future prospects of the company he said there is a LOT of competition out there. Which I suppose is a big hurdle for them. Time will tell.

[crabs]

Actually spoke to one of their software engineers and he said they are a very good company to work with / for and when I asked him what he thought about the future prospects of the company he said there is a LOT of competition out there. Which I suppose is a big hurdle for them. Time will tell.
The real question is does one want to be an investor whilst waiting for time to tell in a company that repeatedly reiterates revenue targets only to miss them substantially every year and mismanages shareholders funds so badly they need a bridging loan prior to announcing a cap raise.
Currently WYN are spending $3 for every $1 revenue.
Me thinks WYN senior management are best friends with RAK senior management.

[sb9]

Me thinks WYN senior management are best friends with RAK senior management.

Classic, lol.

[trackers]

Actually spoke to one of their software engineers and he said they are a very good company to work with / for and when I asked him what he thought about the future prospects of the company he said there is a LOT of competition out there. Which I suppose is a big hurdle for them. Time will tell.

I work for the company (decade plus) that spun Wynyard out and listed it.

They're a good company to work for financially- Its pretty easy to pay big salaries when you're raising tens of millions of dollars semi regularly. They are up against big players, they have a huge cost base, and I can tell you that a lot of the staff (especially the ones who have been around a while) have pretty itchy feet at the moment - There is a lot of them, and Christchurch is not a big place if it doesn't work out

[Ggcc]

Looking at last year, we should get a guidance of figures this week sometime. As a shareholder I am looking forward to realistic figure of FY turnover that they will achieve. I am optimistic of their product, but am losing faith in their management of funds. You just can't keep hiring (the best) people without an income stream happening

[sb9]

Settling into the 70c range by the looks.

[lche059]

the index is closing in on 7000 yet this stock shows no sign of life. sell before it's too late?

[Leftfield]

the index is closing in on 7000 yet this stock shows no sign of life. sell before it's too late?

I sold out of my small holding of WYN in Feb 2016 at $1.40 when it fell below the 90 and 180 day MA.

My biggest regret is that I also chose it as a revival punt in the 2016 stock picking comp. So my chances of performing well in this comp are now not looking good. :(

[crabs]

Settling into the 70c range by the looks.
now that's wishful thinking given the continued slide in the share price.
I hope for holders that they either announce something really positive soon or at the next report the financials show that management are not a pack of muppets.

[sb9]

now that's wishful thinking given the continued slide in the share price.
I hope for holders that they either announce something really positive soon or at the next report the financials show that management are not a pack of muppets.

I hope so too, but responsible top management of any good company will strive hard to uphold shareholder value. I'm afraid I don't see that conviction so far from them, hence the reflection in sliding sp.

[sb9]

Settling into the 70c range by the looks.

Well on the way to the 70c mark....

[crabs]

Well on the way to the 70c mark....
Following WYN's announcements this year it appears they have only signed up $6m worth of large contracts so far this year and that $6m revenue is spread over 3 years so only a extra $2m for this year.
Given the massive cash burn of the company and the mismanagement of funds something big has to happen to stop this company spiraling out of control.
It has to be said that prospective clients will not like dealing with a company that offers long term(most of their big contracts are for 3-5 years) cyber security solutions but may not be around to fulfill the contracts.
Very hard to see a turnaround from here.....but I hope they do....happy to watch from the sidelines for now.

[mayday]

There was a good news released on Wynyard's website a couple of weeks ago, don't know why the company did not announce the news on NZX.

https://www.wynyardgroup.com/en/news-events-blog/deloitte-partners-with-wynyard-to-deliver-advanced-cyber-threat-analytics/

https://en.wikipedia.org/wiki/Deloitte

[Baa_Baa]

@crabs agree completely, needs a white knight investor with serious money. Staring into the SP abyss is unnerving with no price precedents. Best wait for turnaround than risk losing a limb. I hope it works out for them as well.

[lastmoa]

Following WYN's announcements this year it appears they have only signed up $6m worth of large contracts so far this year and that $6m revenue is spread over 3 years so only a extra $2m for this year.
Given the massive cash burn of the company and the mismanagement of funds something big has to happen to stop this company spiraling out of control.
It has to be said that prospective clients will not like dealing with a company that offers long term(most of their big contracts are for 3-5 years) cyber security solutions but may not be around to fulfill the contracts.
Very hard to see a turnaround from here.....but I hope they do....happy to watch from the sidelines for now.

Sure it's hard to be positive with the company's recent faux pa, let's not get too carried away with all this 'doom and gloom' 'it's all over' vibe. Let's wait for the actual facts on earnings, etc, from WYN ather than speculating. Not been a good look but still some huge positives in the cyber-security space if they can gain traction.

[mayday]

16 MAY 2016
Wynyard Group, a market leader in high consequence crime fighting and security software, today announced Deloitte, the professional services firm, as a delivery partner and customer for Wynyard Advanced Cyber Threat Analytics (ACTA), a solution that discovers cyber threats inside the network.
ACTA offers a new solution to the cyber security industry and supports shifts in the market approach for many organisations. Previously heavily focused on preventative measures such as perimeter security, cyber security practice is now focusing on strong detection and response capabilities which include unsupervised machine learning and anomaly detection - methods ACTA uses to detect malicious activity that otherwise goes unnoticed.
Deloitte and Wynyard will offer the ACTA threat analytics solution to enterprise customers via Deloitte’s Cyber Intelligence Centre (CIC) expanding the current enterprise security-as-a-service (SECsaas) delivery capabilities.
Cyber security professionals face an overwhelming number of security alerts generated as a result of an exponential increase in cyber attacks. ACTA helps organisations effectively manage this volume of alerts by detecting, prioritising and presenting for response the highest priority threats to the organisation’s network. Using unsupervised machine learning models it finds threats never-seen-before, meaning cyber threats within a network can be assessed and resolved before they become dangerous or unsolvable problems.
Wynyard Group Senior VP Commercial Paul Stokes said: “By using advanced cyber threat analytics, Deloitte can quickly determine which threats are important, focus on these and investigate any incidents swiftly. This is increasingly challenging for all large organisations, especially cyber security providers who are responsible for managing security on behalf of their clients.”
Phill Everson, UK head of cyber at Deloitte, said: “The reality of today’s cyber environment is that hackers are becoming increasingly sophisticated. Although companies are trying to build their security defences higher and higher – cyber criminals also continue to raise their game. Our partnership with Wynyard marks an important step towards offering our clients end-to-end cyber security services to protect critical infrastructure. Whilst we have been running monitoring services for our clients for over three years through our 24/7 Cyber Intelligence Centres (CICs), by using ACTA’s machine learning technology, Deloitte will also now be able to offer innovative threat detection services using cutting-edge analytics. By combining machine learning with human analytics, ACTA will allow us to identify anomalous behaviours occurring in our client’s systems, leading to early detection and therefore quicker support.”

[trackers]

16 MAY 2016
Wynyard Group, a market leader in high consequence crime fighting and security software, today announced Deloitte, the professional services firm, as a delivery partner and customer for Wynyard Advanced Cyber Threat Analytics (ACTA), a solution that discovers cyber threats inside the network.
ACTA offers a new solution to the cyber security industry and supports shifts in the market approach for many organisations. Previously heavily focused on preventative measures such as perimeter security, cyber security practice is now focusing on strong detection and response capabilities which include unsupervised machine learning and anomaly detection - methods ACTA uses to detect malicious activity that otherwise goes unnoticed.
Deloitte and Wynyard will offer the ACTA threat analytics solution to enterprise customers via Deloitte’s Cyber Intelligence Centre (CIC) expanding the current enterprise security-as-a-service (SECsaas) delivery capabilities.
Cyber security professionals face an overwhelming number of security alerts generated as a result of an exponential increase in cyber attacks. ACTA helps organisations effectively manage this volume of alerts by detecting, prioritising and presenting for response the highest priority threats to the organisation’s network. Using unsupervised machine learning models it finds threats never-seen-before, meaning cyber threats within a network can be assessed and resolved before they become dangerous or unsolvable problems.
Wynyard Group Senior VP Commercial Paul Stokes said: “By using advanced cyber threat analytics, Deloitte can quickly determine which threats are important, focus on these and investigate any incidents swiftly. This is increasingly challenging for all large organisations, especially cyber security providers who are responsible for managing security on behalf of their clients.”
Phill Everson, UK head of cyber at Deloitte, said: “The reality of today’s cyber environment is that hackers are becoming increasingly sophisticated. Although companies are trying to build their security defences higher and higher – cyber criminals also continue to raise their game. Our partnership with Wynyard marks an important step towards offering our clients end-to-end cyber security services to protect critical infrastructure. Whilst we have been running monitoring services for our clients for over three years through our 24/7 Cyber Intelligence Centres (CICs), by using ACTA’s machine learning technology, Deloitte will also now be able to offer innovative threat detection services using cutting-edge analytics. By combining machine learning with human analytics, ACTA will allow us to identify anomalous behaviours occurring in our client’s systems, leading to early detection and therefore quicker support.”

Hi Mayday,

Pretty dishonest of you to leave out the last paragraph of this "new" announcement you've been posting about. Here let me do it for you:


This contract (https://www.wynyardgroup.com/en/news-events-blog/wynyard-lands-deal-for-advanced-cyber-threat-analytics/) was announced to the NZX on 3 March. Wynyard launched ACTA at the end of 2015, signing a contract with Telstra Corporation Limited (https://www.telstra.com.au/), one of the world’s 10 largest telecom companies, which uses ACTA across its internal ICT network to assist in preventing high consequence crime.


https://www.wynyardgroup.com/en/news-events-blog/deloitte-partners-with-wynyard-to-deliver-advanced-cyber-threat-analytics/

[mayday]

Hi Mayday,

Pretty dishonest of you to leave out the last paragraph of this "new" announcement you've been posting about. Here let me do it for you:


This contract (https://www.wynyardgroup.com/en/news-events-blog/wynyard-lands-deal-for-advanced-cyber-threat-analytics/) was announced to the NZX on 3 March. Wynyard launched ACTA at the end of 2015, signing a contract with Telstra Corporation Limited (https://www.telstra.com.au/), one of the world’s 10 largest telecom companies, which uses ACTA across its internal ICT network to assist in preventing high consequence crime.


https://www.wynyardgroup.com/en/news-events-blog/deloitte-partners-with-wynyard-to-deliver-advanced-cyber-threat-analytics/

Hi trackers, I admit I deliberately removed the last para because the old news did not disclose the firm's name wyn signed contract with
https://www.wynyardgroup.com/en/news-events-blog/wynyard-lands-deal-for-advanced-cyber-threat-analytics/

[lche059]

Sure it's hard to be positive with the company's recent faux pa, let's not get too carried away with all this 'doom and gloom' 'it's all over' vibe. Let's wait for the actual facts on earnings, etc, from WYN ather than speculating. Not been a good look but still some huge positives in the cyber-security space if they can gain traction.
so when is the next financial report due?

[trackers]

so when is the next financial report due?

Well they released a forecast on 18th May last year. Will they be as forthcoming this year? Their HY is at end of June, and I don't think they report quarterly

[crabs]

Well they released a forecast on 18th May last year. Will they be as forthcoming this year? Their HY is at end of June, and I don't think they report quarterly
what confidence could you put in any forecasts should one appear given they have failed miserably to reach all previous forecast.

[crabs]

Sure it's hard to be positive with the company's recent faux pa, let's not get too carried away with all this 'doom and gloom' 'it's all over' vibe. Let's wait for the actual facts on earnings, etc, from WYN ather than speculating. Not been a good look but still some huge positives in the cyber-security space if they can gain traction.
very happy to do so especailly with no money on the outcome

[lastmoa]

very happy to do so especailly with no money on the outcome

I'm happy to .. and having money in the outcome. Could be happier of course but holding longer term. Also, pleased to see Deloittes name on contract.

[crabs]

I'm happy to .. and having money in the outcome. Could be happier of course but holding longer term. Also, pleased to see Deloittes name on contract.
I am not sure I understand your investment strategy.
Why would you want to be holding shares in a company that is in a high growth sector yet consistently misses forecast by wide margins, managers shareholder funds poorly,has slowing growth, has a widening loss and we await news of what could be confirmation of the same continued performance when there are companies to invest in that are in high growth sectors and are proven to meet growth forecast and exceed them, manages shareholders funds well, still have rapid growth, have positive earnings per share and there is no indication that we will not get confirmation of continued success.

[trackers]

I am not sure I understand your investment strategy.
Why would you want to be holding shares in a company that is in a high growth sector yet consistently misses forecast by wide margins, managers shareholder funds poorly,has slowing growth, has a widening loss and we await news of what could be confirmation of the same continued performance when there are companies to invest in that are in high growth sectors and are proven to meet growth forecast and exceed them, manages shareholders funds well, still have rapid growth, have positive earnings per share and there is no indication that we will not get confirmation of continued success.

Because of statements such as this:

http://www.nbr.co.nz/article/will-be...eo-th-p-185329 (http://www.nbr.co.nz/article/will-be-last-time-says-wynyard-ceo-th-p-185329)

"This will be the last time", says Wynyard CEO. No more capital required after this rights issue; profits to flow in 2017.

And if they execute that, well that is awesome, but I would say extremely doubtful based on the information available to the market

[crabs]

Because of statements such as this:

http://www.nbr.co.nz/article/will-be...eo-th-p-185329 (http://www.nbr.co.nz/article/will-be-last-time-says-wynyard-ceo-th-p-185329)

"This will be the last time", says Wynyard CEO. No more capital required after this rights issue; profits to flow in 2017.

And if they execute that, well that is awesome, but I would say extremely doubtful based on the information available to the market
hmmmmmm very bold statement, not sure of the timing as your link is locked content but will take an educated guess and say it was said prior to the rights end date to encourage take up.
In any case, at this stage and in all fairness, I will have to pass judgement on that sort of statement based on how reliable/accurate other statements from the company have proven to be.
Share price is performing in line with companies performance.

[sb9]

Well seem to be going only one way currently....DOWN

[winner69]

Well seem to be going only one way currently....DOWN

Reminds me of how to approach a run chase in cricket

Get below a 100 to get then knock them off 10 at a time - like 90 then 80 then 70 then 60 then 50 ........better stop there eh

[sb9]

Reminds me of how to approach a run chase in cricket

Get below a 100 to get then knock them off 10 at a time - like 90 then 80 then 70 then 60 then 50 ........better stop there eh

With advent of T20 anything's possible, better hope not for sake of holders....

[lche059]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

[blackcap]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

Well I guess if they cannot cover wage costs and if contracts do not come in.... another capital raise will be on the cards. But who will/would support that?
On the other side, if contracts come in and they can fund wages from income then all is well.

[blobbles]

A dangerous time to be in WYN. Unknown if they will be supported in their next capital raise, at least 1 more required (maybe 2?) before profitability happens, if ever. Investors know this so are exiting.

At the same time they have stalwart key shareholders who are propping the company up during previous capital raises. Will this continue? Meanwhile, buying shares now you are asking for massive future dilution (50c cap raise for 100m shares maybe?) with no end of losses in sight.

Dangerous indeed, but companies have turned such ships around before. For me, if you buy now, you are betting entirely on management. The product is good, it is in demand and they don't have a lot of competition at their level (there are some BIG players but their software is expensive and far too massive to install/maintain). If you believe in management, buy up. If you doubt them, get out. Personally management have not instilled enough confidence in me for me to expect mid term positive results. Short term, its a blood bath.

Meanwhile, announcements are NOT coming thick and fast. I would be expecting/hoping for one a month. Only 2 this year (putting the 27m one into next year, as they have!) and we are almost halfway through. Not good.

This could be the next Xero (Sam Morgan), or it could be the next zero as people have noted on this thread. Choose wisely and remember that 65c could be worth 40c in 2 months, 1c in 6 months... with the shape of the NZX graph, there are better places to put money while you wait for a turnaround which is surely at least a year away.

[blobbles]

there's no much liquidity at all. what's the worst case we're looking at? bankruptcy?

disc holding

Not sure you can accurately say "not much liquidity". There has been quite a lot of shares swapping hands since their 27m cannot recognise this year oopsy. Probably around 20m. A decent enough floating amount of shares. Don't be fooled by Bid/Ask screens showing volume ahead values, there are a lot of people waiting in the wings, possibly on both sides.

Bankruptcy will only happen if they run out of cash and their large shareholders bail on them. A distinct possibility given the size of their losses which are being worn by their large shareholders.

[gbogo]

Until we see sustained institutional buying, maybe with a spike bottom that we all missed, it will most likely keep on going down.

[Harvey Specter]

This could be the next Xero (Sam Morgan), or it could be the next zero as people have noted on this thread. Choose wisely and remember that 65c could be worth 40c in 2 months, 1c in 6 months... with the shape of the NZX graph, there are better places to put money while you wait for a turnaround which is surely at least a year away.Next Diligent or next Rakon, that is the question.

[Baa_Baa]

Next Diligent or next Rakon, that is the question.

Hopefully next DIL, but not that it goes to 5 cents first! :scared:

[King1212]

Time to punt in?

[Ggcc]

Well no news no news. It would be nice Mr Richardson to get some info on Wynyard. They are totally silent. Guess we have to wait till agm on 20th June.........

[Yoda]

Some buyers lining up today below .65c Some punters taking a guess on the AGM .? Still low turnover though. Maybe it will rise a bit over the next 2 days in anticipation .....

[BlackPeter]

Wow ... is this the company which intended a CR above $2 per share 6 months or so ago? Didn't follow them for some time, but what a sad picture:

8109

BTW - just another demonstration that it is not always a good idea to wait with buying until passing the Golden Cross (which would have meant paying >$1.80 and certainly not waiting for the Cross of Death for selling (i.e. selling below $1). On the other hand - breaking through MA50 (around $1.70) and still MA 200 (around $1.50) would have been acceptable Stop-loss signals (and still offering some volume to get out, obviously MA50 better than MA200).

Discl: purely academical exercise ... don't hold (and didn't for some time);

[blackcap]

Some buyers lining up today below .65c Some punters taking a guess on the AGM .? Still low turnover though. Maybe it will rise a bit over the next 2 days in anticipation .....

As you can see by this mornings trading, depth often is misleading...

[whatsup]

Obviously bad news is coming at next weeks meeting !!

[blobbles]

One wonders if they are able to recognise their 27m contract at all, considering it was conditional... If that is in doubt, their growth looks positively sick.

[lastmoa]

One wonders if they are able to recognise their 27m contract at all, considering it was conditional... If that is in doubt, their growth looks positively sick.

Speculation. We will all have to just wait till AGM. I'm on the fence which way it will go. I see they are still hiring and exhibiting so things may be cooking behind the scenes. It's not as if Palantar reveals all.
Next week we all will know which way she's heading ... in meantime I'm holding.

[blobbles]

Speculation. We will all have to just wait till AGM. I'm on the fence which way it will go. I see they are still hiring and exhibiting so things may be cooking behind the scenes. It's not as if Palantar reveals all.
Next week we all will know which way she's heading ... in meantime I'm holding.

Absolutely speculation, speculation that I hope is not true. But I have also noticed before with WYN that there are inexplicable price rises and drops before good/bad news. These could be coincidence as well and I hope they are, but buyer beware. Hard to explain a 9% drop so far today based on no news when the SP was previously degrading so uniformly. Just my observations, as always DYOR.

[sb9]

5
20
11:10:37 am
60
1,362,951
$817,771
Off Market



Well, read what you may like from the above but it looks pretty scary...

[whatsup]

Today is AGM day and looks like something is "LEAKING " out as s p slowly creeping up ! doesn't look good imo !!

[theace]

Are we able to dial in to the AGM?

[BeeBop]

Are we able to dial in to the AGM?

"slowly creeping up", rather more, climbing up quite a bit but value seems low....looks like leaking....

[BlackPeter]

Today is AGM day and looks like something is "LEAKING " out as s p slowly creeping up ! doesn't look good imo !!

Not sure whether I would read anything sinister into today's trades so far. Less than 100k shares changed hands. Yes, price is going up, but this might be just punters hoping for good news or share holders positively surprised that the AGM is still on? As well - who knows, maybe somebody met the CEO already and he smiled while passing?

Discl: No WYN insider knowledge at all, but I guess in 20 minutes we all should know more ...

[RGR367]

Class action against the Company http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573

disc: not a shareholder
(http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573)

[sb9]

Surprised to see the ASM presentation docs not yet released to NZX yet? Generally they're out before start of ASM which in this case is 3pm today.

[percy]

Class action against the Company http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573

disc: not a shareholder
(http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573)
Thanks for posting the link.
That looks like a big red flag to me.

[BlackPeter]

Surprised to see the ASM presentation docs not yet released to NZX yet? Generally they're out before start of ASM which in this case is 3pm today.

Agreed - I think technically they are even required to release them to the market prior to presenting them to the meeting (otherwise the people attending the meeting would have an unfair advantage), unless they make sure that they don't release any news during the meeting at all (which would make for a really boring meeting).

Who knows - maybe they lost connection;) .... I guess it is an Internet company after all.

Discl: not holding :t_up:

[sb9]

Agreed - I think technically they are even required to release them to the market prior to presenting them to the meeting (otherwise the people attending the meeting would have an unfair advantage), unless they make sure that they don't release any news during the meeting at all (which would make for a really boring meeting).

Who knows - maybe they lost connection;) .... I guess it is an Internet company after all.

Discl: not holding :t_up:

Absolutely, am beginning to suspect something isn't in order? smell a dead rat perhaps....

Disc: not holding either...

[forest]

Absolutely, am beginning to suspect something isn't in order? smell a dead rat perhaps....

Disc: not holding either...
In addition, Wynyard confirms the retirement of Susan Peterson and Richard Twigg as Directors of Wynyard with effect from the close of the meeting.

It smells very bad, 2 directors resigning as well.

[sb9]

In addition, Wynyard confirms the retirement of Susan Peterson and Richard Twigg as Directors of Wynyard with effect from the close of the meeting.

It smells very bad, 2 directors resigning as well.

Had a quick skim through the presentation docs and afraid if I'm a shareholder in this company I'll be very very very disappointed (generous use of word "disappointed")!!!

[trackers]

54-65mil FY revenue. costs 57-17 = 40mil.

So they're profitable right?...Right?

[forest]

54-65mil FY revenue. costs 57-17 = 40mil.

So they're profitable right?...Right?

The Chairman said:
Annualised cash savings of circa $17 million have been actioned through a combination of reducing
staffing levels through managed attrition and redundancies and further operating cost and capital
expenditure reductions.

The redundancies are likely to come with a one off cost of as present unknown amount.

[Baa_Baa]

Good grief, the wheels really have fallen off haven't they.

Some credit to the new Chair for not gilding the lily, however 2015 was truely terrible, flat revenue, big hike in expenses, EDITDA well over double negative, net loss doubled, that's really sad ... and the 'reboot' story is like ... well, starting again, to build the company and investor confidence.

It really is upsetting that things could have gone quite so badly wrong, when it was all looking so terrifically right! Hardly surprising there's carnage across the Board.

Although hope is an awful investing strategy, I'm glad (relieved) to have been out before the sh1t really hit the fan and I do genuinely hope WYN get this back in shape, which if they do I'll be eager to re-invest.

Meantime, I can't see for one second why anyone would buy this like it's the price bottom (todays pip), just wait until the news is fully digested and existing shareholders figure out how fragile and vulnerable their remaining investment really is.

What a shame, it was going so well and now it's on life support and investor hope. Sad really.

[Ggcc]

I am hearing a lot of honest remarks from people who I believe are not shareholders. I am disappointed in the management of this company for letting shareholders like me down, but change is good right now. I do believe in the integrity of the directors, but they have acknowledged they were out of their depth. I do look forward to this company doing well. Not only for me, but for New Zealand and shareholders in general. I am pessimistic right now, but show me and shareholders the light Craig Richardson and directors.

[lastmoa]

I am hearing a lot of honest remarks from people who I believe are not shareholders. I am disappointed in the management of this company for letting shareholders like me down, but change is good right now. I do believe in the integrity of the directors, but they have acknowledged they were out of their depth. I do look forward to this company doing well. Not only for me, but for New Zealand and shareholders in general. I am pessimistic right now, but show me and shareholders the light Craig Richardson and directors.

Well said. Unlike others here, I can't see the big negatives in the agm presentation. Directots leave and others join. Yes, they missed projections but, just maybe they will get the big contracts they are striving for.
Very easy to be negative and not a holder. I am in the arena still and bleeding but have faith that they can turn the ship around in a market that is growing exponentially.
Digest the results as you may, but no, there are no 'sugar coated' contracts ..... but lets see what prevails.
I'm not into the 'death cross' 'withdoctor' technical signals .... do your research in the IT space of cybersecurity, the products WYN has, and the progress they are making. Wynyard predominantly fell on fundraising issues ... Not happy but look at the facts and not bash as a non-shareholder i an airchair clutching share certs of Spark and Fletchers, etc.

[blobbles]

Flat revenue and 100% increase in costs.

Not good in anyones book. Unlikely to be cash flow positive next year unless they sign a lot more contracts quickly.

They say they can save $17m, but I see that as gutting the software teams that actually, you know, MAKE THEIR PRODUCT. Was it said in anytime where the cost reductions come from? If they are going to gut their software teams, get out while you can. The sort of software they are building is going to require positively motivated teams of highly skilled software developers which cost a lot, but return massively in the long run. Putting machine learning capabilities into your software is massive, requires a huge amount of time and energy from developers who need to be fully committed to a great outcome. If they are going down the path of getting rid of developers, their product will be hugely hamstrung in the future, either by being built cheaply (outsourced to India, for instance) which comes with massive bugs and huge maintenance costs or by not being able to keep up with the changes required. Neither are desirable.

But if their cost reductions are coming from other areas, they *may* be able to survive.

Either way, at the moment, your shares could be worth a lot less than they are now for quite a while. A very risky place to park money. But it could still pay off in the long run.

Personal advice would be get out now, get in when they look like they are turning the corner.

Should the lawsuit be taken seriously? If successful it may result in the company winding up. With only 15cps in reported assets and (by the time the lawsuit is decided) not much money in the bank, a win for the supporters may mean you get 5c back per share if it all turns to custard. Eeek.

[Baa_Baa]

Class action against the Company http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573

disc: not a shareholder
(http://www.nbr.co.nz/article/campaign-class-action-against-wynyard-launched-b-190573)


Thanks for posting the link.
That looks like a big red flag to me.

Certainly does, will the big red flag see shareholders waving the big white flag!

[lastmoa]

Shows the scope of Wyn product and a little hint at the insto's and tech companies they are in discussion with :

http://www.cso.com.au/article/600950/worst-attacks-ones-don-t-even-know-look/

[lastmoa]

Shows the scope of Wyn product and a little hint at the insto's and tech companies they are in discussion with :

http://www.cso.com.au/article/600950/worst-attacks-ones-don-t-even-know-look/

Whilst not in favour of a Brexit exit, the result should be seen as potentially good for Wynyard as they seek to tighten their borders and protect themselves. The ongoing developments may indeed soon deliver results the long suffering shareholder wants to see ... patience all.

[mayday]

http://www.businesswire.com/news/home/20160629005906/en/Wynyard-Group-Technology-Selected-Georgia-Department-Corrections

[Longhaul]

http://www.businesswire.com/news/home/20160629005906/en/Wynyard-Group-Technology-Selected-Georgia-Department-Corrections

Huh. It never crossed my mind that a corrections department would seek Wynyard services. I guess that means there's a massive market to tap in the US!

[whatsup]

Huh. It never crossed my mind that a corrections department would seek Wynyard services. I guess that means there's a massive market to tap in the US!

The CEO mentioned this at the recent AGM and did say that if the got their foot in the door others of a similar ilk could follow, have we turned the corner !

[golden city]

no news..those days.., not sure if it is good or bad sign

[RupertBear]

no news..those days.., not sure if it is good or bad sign
Yes I agree. Cant decide whether to get out now and take a big loss to prevent an even bigger loss if things really go to **** or stay in hoping for some good news. Hard to make a decision when there is no information forthcoming.

[blobbles]

Yes I agree. Cant decide whether to get out now and take a big loss to prevent an even bigger loss if things really go to **** or stay in hoping for some good news. Hard to make a decision when there is no information forthcoming.

Doesn't look that good, over halfway through the year and $6.1m of new business so far this year... 2 announcements Feb and March, nothing since 3 March. Almost 4 months since signing a decent contract and no word on their $27m (16m this year) conditional deal.

For a growth company at this stage of their cycle, growth is looking poor. DYOR.

[RupertBear]

Doesn't look that good, over halfway through the year and $6.1m of new business so far this year... 2 announcements Feb and March, nothing since 3 March. Almost 4 months since signing a decent contract and no word on their $27m (16m this year) conditional deal.

For a growth company at this stage of their cycle, growth is looking poor. DYOR.


Uggg. Yes it doesnt look good. My only slight reassurance is that Milford Asset and other fund managers are big shareholders and as far as I can tell they havnt been selling down. I imagine Brian Gaynor will be keeping a very close eye on them. Really hope for all shareholders sakes they can turn things around.

[mayday]

Business as usual, me reckon. They are doing a roadshow in Singapore at the moment.
https://www.rsaconference.com/events/ap16/exhibitors-sponsors/exhibitor-list

Some of in-sight reviews from their current/ex employees on Glassdoor were really negative. But I'd rather wait until the company releases HY report next month.

[forest]

Business as usual, me reckon. nth.

Ouch, if that is the case an other capital raising.

[BlackPeter]

Ouch, if that is the case an other capital raising.

Good one! And you are quite correct - I guess somebody needs to replenish the difference between cash inflow and outflow - why not the share holder?

[lastmoa]

Business as usual, me reckon. They are doing a roadshow in Singapore at the moment.
https://www.rsaconference.com/events/ap16/exhibitors-sponsors/exhibitor-list

Some of in-sight reviews from their current/ex employees on Glassdoor were really negative. But I'd rather wait until the company releases HY report next month.

I happened to be in Singapore so attended the RSA cyber-security conference, and have a chat with staff. Got positive vibes. All I will say is I'm a shareholder and are not selling anytime soon.

[Ggcc]

And the share price continues to get a hammering on no news...... We will see by the end of this month if the risk was worth the wait.

[RupertBear]

I am thinking no news is bad news, I am guessing they would have posted any good news.... Nervous holder :(

[forest]

I am thinking no news is bad news, I am guessing they would have posted any good news.... Nervous holder :(

The longer the news vacuum last the more time holders have for saving to take part in the likely upcoming capital raising :)

[RupertBear]

The longer the news vacuum last the more time holders have for saving to take part in the likely upcoming capital raising :)

They wont be getting a cent more of my money I can tell you that! In fact I would like them to give me back the money I have lost already! :D

[sb9]

50c now, hmmm anyone brave enough to pick a bottom??

[Ggcc]

Not until we hear some news. Too early to make that call.