Hi Pgrace,
What's my post all about?
Precisely what I mentioned.
Let's look at what the company recently acquired.
* TSN have now acquired a Cyber Security company at an EBITDA multiple of 3.6x with immediate value accretion for shareholders.
* The business has been generating consistent revenue of $9.9 million over the last three years.
* Recurring revenue has come from existing repeat blue chip clients.
* EBITDA margin of 26-28%. EBITDA of $0.8-1.0 million in each of the last three years.
* The business is earnings accretive.
* TSN's plan is to implement a number of initiatives to improve current efficiency and effectiveness in sales and delivery to improve revenue and profitability. And that's without any new potential complementary business acquisition.
* What did they pay again for DWX? See here...
https://hotcopper.com.au/threads/an...ialist.3611706/?post_id=26521626#.Wdv5yrpuLIU
That's an impressive deal in my view. Let's see how business performance progresses from here.
Now let's look at TSI India.
So how have things come along for TSI India since demonitisation was announced by the government almost one year ago?
May to August 2017- daily average transactions numbers on the rise. Solid steady uplift.
Transactions between enquiries to withdrawals returning to pre demonitisation levels. More withdrawal transactions = higher fee for TSI.
Positive EBITDA for the months of July and August. Remember there was a negative EBITDA period prior to this, so a welcome positive change.
And yes, I can here many asking... 'but what about profitability'? Fair question. Since CXP joined the table, profitability metrics have never been highlighted in any of TSN's company announcements, only ATM/Kiosk numbers, revenue breakdown & transaction volumes.
Note, other than the signed Novatti agreement, it's been a fairly quiet year in terms of contracts won for TSI's ATM business line, with only small contracts awarded/completed in ATM e-surveillance in 2017.
https://hotcopper.com.au/threads/ann-tsn-business-update.3675585/?post_id=27120492#.WdvrkbpuLIU
As for the potential TSI India investment, I stil have trust and faith that management understand what direction is best for the company now and into the future. At the end of the day, it's all about value and that requires time, resources and above all patience. My long term view with my investment in TSN still remains very strong and the recent DWX Cyber Security acquisition has only added an extra level of excitement for me to the equation.
https://hotcopper.com.au/threads/an...ialist.3611706/?post_id=26521626#.Wdv5yrpuLIU
Hope that's an honest enough answer for you. Anyhow, time off for me until early next year from this thread, which I also hope you can appreciate.
Tony
