Interesting Blog Post about Corum, page-2

Can't disagree with "eighth Wonder's" assessment of the hole Corum dug for themselves by not investing in new product development in the period approx. 2005 - 2014 under management that was more focussed on getting its financials back in order than its software products and service levels. It was hugely complacent and not recognising the headwinds affecting the pharmacy trade.

Corum before and after it got out of the serious financial holes (mostly thanks to Bill Paterson's involvement)had always had good market share and margins and then had started to generate good profits and accumulation of cash. Unfortunately the double whammy of the emergence of pharmacy corporates and discounters (e.g. Chemist Warehouse ) and government policies which reduced pharmacy profitability (generic price disclosure) has taken away pricing power for Corum and other suppliers in the pharmacy industry. Without new innovative products there was little hope of regaining the ability to "up sell" let alone maintain their customer base and margins. Also pharmacist stopped investing in hardware renewal, training and software upgrades. That is starting to change with Gov't tax incentives and some exciting new value adding software products from new entrants.

What has been a poor investment over the last few years may now possibly be about to turn around. Corum's investment in new products, service levels and promotion as well as a lot of work on internal management systems can only help Corum's plight. Monitoring Corum's activity in the pharmacy software innovation arena suggests that they are more that holding there own against all their competitors.

The Feb 24th market update will be pivotal in my mind. Any indication of an improvement in cash flow and profitability will be very well received.