Ann: Appendix 4D & Half Yearly Report and Accounts, page-42

I am actually really surprised by this viewpoint.
I don’t expect any growth in April, but you never know.

The Net transaction loss is part of the net transaction margin....there is plenty of scope in the net transaction margin even in case of a downturn to stay positive. Moreover, the risk in a large number of small loans is much more likely to be small compared to the vice versa.

There were a number of points hidden in the presentation that were noteworthy:
- new POS system for instore imminent
- the Valentine’s Day sales event was largest ever- ie the last sales event was not just a fad
- 90% recurring customer rate and 8x average customer transactions/yr —> this is massive
- no red flags in the loss metrics in the financials
- equity on balance sheet increasing over time (ie profitable) and not with intangibles- despite massive increase in organizational size and growth—> again bodes very well for scalability of the model

Currently trading at 60x spot EBTDA- if growth rates of revenue drops to 100% and no operating leverage occurs at all- this is a forward multiple of 30x in 12 months...again not onerous assumptions...