Longtime watcher first time poster and this is all my own opinion - so feel free to come back to me/challenge me
Does it get to a point where ALC needs to call out the inability of the board/management to actually execute?
R wilson has been a board for over 6 years (joining august 2016 - and while revenue has grown from 2.4m FY17 to 40m in FY23, the FY19 of MKM accounted for a 5X on revenue reported the previous year. Additionally the Silverlink acquisition contributed a $7.8 million increase for FY22.
So from an outside look that 1566.7% increase in revenue looks substainally amazing - but I always like to take the reported revenue value of the acquisitions to see how much we've grown organically. The revenue from the acquisitions was around 20.8M at their various points; so really even with the addition of these companies, their market access and the opportunities they were meant to open - revenue increased 700% in 6 years.
Yes I'm aware this is significant - but the question remains without the acquisitions what would our revenue have grown by? I get acquiring companies to grow revenue, I get the market opportunity they present, and I get that its needed for the future viability of this company.
But here's my issue - MKM was meant to be such a transformative acquisition, and Silverlink was another missing piece of the puzzle but I'm still not convinced this company is firing on all cylinders and continues to exhibit the capbilities to push the company further. I'm also not convinced that that both companies were worth the 67M for their acquistion - especially at the cost of the equity dilution to existing shareholders.
I could be wrong here - but its very much a wait and see for me; ALC is walking into FY24 with nearly 33M in committed revenue so hopefully big things on the horizon.
For transparency - ALC is on my watchlist as Rebecca Wilson is an owner of WE Communications (ALC's IR firm) and that just doesn't pass my smell test - it just feels like double dipping nepotism at its finest
ALC Price at posting:
10.8¢ Sentiment: None Disclosure: Not Held
