Ann: Strategic Acquisition - Company Presentation, page-234

@MattHC

For those interested in the presentation of revenues on p12 of the presentation and specifically the composition of Project Revenues (noting it increased to approx 39% of total revenues in FY20) I have received this response from the company:


’ .... When new customers are onboarded, Change earns one-off set up fees. This could be for a number of things as detailed on slide 24 of the presentation and include, Bank Identification Number set up, program parameter set up, card design and production set up.

In terms of Professional Services and Value Added Services, the ongoing licensing fees (recurring revenue) also attract a need to support the customer and Change charges on a “project” or “time and materials” basis for these types of services. This includes services such as upgrades to new versions of our products, custom development work and support services. These fees are ongoing and vary from contract to contract to continue supporting existing customers ...’


So it appears that the company has taken a very conservative approach to defining recurring revenues and only includes the licensing fees and not the associated support services. This also suggests that customers will be relatively sticky once onboarded.

The company has also committed to releasing more information after working through practical completion and bedding down integration.