Exited my entire holding this morning. Tough decision as I have been high conviction on RPM over the past 18 months, with the progress made by the Company well aligned with the investment case. Ordinarily, I would have seen this morning’s results as a further confirmation of a bright future, with trajectories on both Subscription Revenue and Operating Expenses presenting the case for operational leverage. As with many Companies, COVID-19 has dealt a blow, with travel restrictions undermining the result. The commentary in the FY2021 Outlook tipped the scales for me.
A difficult decision, rationalised by the fact that COVID-19 has impacted Companies differently, some facing headwinds for an uncertain/ maybe prolonged period, others seeing greater adoption of their products / services during this time. In a nutshell, hoping to pursue a higher ROI elsewhere next 12 months.
Good luck to all the LTH’s.
Rokewa
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