Ann: Preliminary Profit Advice - Half Year Ended 31 December 2016, page-38

BrownDirtCowboy,

Thanks for your post. I must say I didn't realise that the top 10 clients made up 38% of their revenue. However, it doesn't really both me much... I think there are broadly four key items I really like about ASW and they are:
- High switching costs / sticky client base (industry wide)
- Lowest cost registry service (ASW sepecific)
- Founder management with a great track record
- Conservative balance sheet

There are several others including how I view their growth outlook. However, to address your question, I would invert the question... What would cause one or more of those 10 customers to leave?

Registry services are one of those issues that don't get much air time in most companies. It is a relatively boring service, not overly pricey for most companies and changing, while not necessary very expensive, is a hassle. So unless ASW can either not service your shareholder register, for example, you have too many shareholders for their printer and folding machine to keep up (think demutualised companies such as IAG and AMP) or they somehow let you down in their record keeping... Why would you switch away from them?