Rubik Financial (RFL) reported a $788,000 loss for the 2012 financial year. This loss included $981,000 in expenses associated with the recently completed Coin Software acquisition as well as $150,000 expenses associated with an early termination of a property lease.
Bottom-line appears to be the three small businesses owned by Rubik pre the Coin Software acquisition (Bank-in-the-Box, Debt collection software, Telephone banking systems) made a small operating profit in the year to 30 June 2012. This level of operating profitability will be significantly enhanced in 2013 as Coin Software starts making a meaningful contribution to profitability.
The traditional Rubik operating revenues increased by 10% in the 2012 year, with the company guiding that sales successes late in the 2012 should add $2.2 million to the 2013 revenue base. These additional sales are being offset somewhat by planned 2013 additional employee hires in sales and support roles. There appears reasonable grounds to expect the earnings before interest and tax from the traditional Rubik business to grow in 2013.
The Rubik share-price success remains linked to Coin Software performing to expectations in 2013. This business generated $5.2M EBITDA in the March 2012 year. The quantum of 2013 software development costs and their accounting treatment in Rubik accounts remains unclear.
The broad investment metrics are at 6.3 cents per share the company has a market capitalization of $14.5 million and gross debt at $12.5 million. This indicates Rubik has $27 million enterprise value, with circa $6 million EBITDA not unreasonable for 2013. This 2013 EV/EBITDA metric at ~4.5 times compares favourably against most Australian software peers although its closest software peer GBST (GBT) trades on a similar multiple.
http://australiansmall-capcompanies.blogspot.com.au/2012/08/rubik-financial-rfl-2012-annual-result.html
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