GSW (ASX) GSW &quot;in the process of evaluating acquisition targets&quot;

Originally posted by Nanday ↑

Okay, try, try again...

Found this online dated November 30, 2017, from someone who attended the AGM, actually asked questions. Interesting read in hindsight. What I found really interesting was this (direct extract) from article:

The next question that came from the audience and asked how the NA Williams project was progressing?
While the company was limited at what they could say in regards to market sensitive comments, they indicated the project was on track and an announcement about the progress would be made early in the new year.

The next question came back to me and I asked if they could explain the 1 billion transactions (NA Williams) as I was struggling to understand where those numbers came from?
I was pleased to learn the 1 billion figure actually came from NA Williams itself when they engaged GetSwift. Both the chairman and managing director admitted they also doubted those figures when they first heard them. This led to them spending sometime in the US with NA Williams at their delivery sites and on delivery trucks to get a better grasp of how many transactions would be involved across all divisions of NA Williams.

https://www.cthgpro.com/2017/11/30/getswift-agm-2017-where-to-from-here/

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Now let me think this one out - would NA Williams ever be incentivized to offer GSW management a bullish potential transaction figure that they could deliver GSW so as to improve their bargaining position on the transfer price/margin that they negotiate for themselves...mmm I wonder ?

On another front the retention rate is not as good a guide for a company like GSW that operates 'pay-as-you-go' "stop using/leave anytime" contracts. Yes it would be a red flag if this was lower than even 80% IMO.

The key metric that you want is like a capacity utilization figure, or in other words what is the % take-up/penetration of GSW clients using the platform versus the total deliveries that the particular clients' business does.

The veracity of this figure assumed by GSW going forward will be extensively tested by PWC and IMO will be key in forming the view of whether GSW directors had a reasonable basis for providing the 1+ Billion NA Williams or ~260m CBA figures.

I still can't fathom how GSW directors signed off on an ASX release on April 4 2017 re the CBA deal that used the explicit wording..."will deliver ~260m..." What was the reasonable basis there ?