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39.5¢ vortiv limited

Ann: Expiry of Convertible Notes, page-63

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kickit2me

13,626 Posts.

4845

18/09/20

11:47

Post #: 47446204
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Originally posted by baovuong: ↑

According to the company's presentation, for FY20, VOR has revenue of $11.5 mil, profit before tax of $1.4mil, and average annual revenue per client is $1mil.

It shows that VOR has a very, very concentrated clientele. There is a significant risk, that if a client decides to walk away, VOR will fall back to loss territory easily. So it is true that VOR is profitable now, but I would not consider it sustainably profitable.

One way to mitigate such risk is to grow and diversify the client base, either by acquisition of other companies in the sector, or by winning more contracts. Either way, it has to be fast, especially in a hot sector like cyber security.

From what I see, VOR is doing nothing like that.

Expand

In my view its the exact opposite:

• Top 10 clients all now have contracts worth a total of > $1m and make up 95% of VOR business

When you look at the calibre/nature of the clients, the low churn on this type of client, and the difficulty any competitor has to qualify to service these clients - its the client list that is the STRENGTH of VOR - not a weakness.

..

VOR Price at posting: 18.0¢ Sentiment: Buy Disclosure: Held
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