OB10 finally achieves traction with report of £7.1 million revenues
Finally, something trully worth celebrating for Jamie and the boys, a
whopping increase of revenues to £7.1m in 2008 from £4.1m the previous year.
Breaking the £5m barrier is always emotional, but to report revenue growth of
73% is remarkable. The gamble Stefan Foryszewski, Alain Falys, John Jermy and
Chris Lowrie took in the middle of the dot.com bust is paying off. Unfortunately,
only Stefan is still involved with OB10. John and Chris left in 2002 with Alain
leaving in 2005 when Jamie took the responsibility to drive the company towards
growth by estabishing strategic partnerships. Alain continues to remain as a key
shareholder of the company.
Whilst the revenue growth is always a joy to celebrate, the profitability continues
to remain in red. The operating costs have jumped up to £13.6m from £11.8m
resulting in Profit Before Tax and Interest (PBIT) of negative £6.4m. The key
contributor for operating losses remains the cost of salaries at £7.4m, of which
the highest paid Director (assume Jeremy and not Stefan) netting a cool £221k.
Employees have increased from 93 to 123 but salary costs have seen marginal
rise to £7.4m from £7.3m. It is possible that this may be due to using more labour
from the South East Asia due to OB10’s presence in Malaysia.
Bank and deposits show a healthy £5.2m compared with £4.7m for the previous
year. Trade debtors have also increased from £1.3m to £1.9m. Unfortunately,
trade creditors have decreased from £898k to £581k. It would have been better if
this could be increased to improve the working capital. Short-term liabilities have
continued to increase, giving a total current liabilities of £5m. But due to high
amount of cash and deposits, OB10 managed to report a healthy balance sheet.
This is mainly due to an injection of about £7.4m fresh capital, which means, at
this rate, OB10 needs to continue tapping into further investments.
Unfortunately, I cannot see at what stage OB10 will start to make profits. Looking
at the last 4 years, from 2008 to 2005, OB10 have tapped into £7.4, £8.9, £3.9 and