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IFM has a few advantages for potential growth. Predominantly foreign income makes this a good choice for protect against Australia's currency rerating. But currency protection should not be a primary justification.

IFM also has the benefit of high profit margin for each new client because IFM mainly copies the product (with some customer set-up costs); it doesn't have to build a new product for each client.

One advantage with IFM over other software firms that analysts seem to overlook is that IFM has a subscription model, not an outright purchase model. Adobe is forcing customers (kicking and screaming) to a subscription model. Microsoft has tried subscription, and mostly failed in its consumer products. Subscriptions are desirable because they generate continuing income, not one-off income with gaps between new product lines.

Against these strengths, SEMS has twice sounded an important warning about IFM's client growth. It would indeed be good to hear that IFM is expanding in the EU and to other auto groups.