Ann: Next Telecom acquisition and placement completed, page-26

I have recently bought in after reviewing the 2020 accounts and the recent acquisition.

Healthy balance sheet with no loans and a healthy cash balance plus additional cash that was put aside to fund future acquisitions, according to the Capital Raising announcement made on the 17th of December $2.6M has been put aside to fund future acquisitions over and above the working capital required to fund and smoothly transition the merger.

Using basic metrics the 30 June 2020 annual reports show 1.39 cents earnings per share which puts the company on a 7 x multiple, the recent acquisition resulted in issuance of new shares which should in theory be offset by the additional earnings the acquisition will bring in which it looks to have been purchased on a 5 x EBITDA multiple which at face value looks like .

For a company that is projected to grow through this current acquisition plus future potential acquisitions I see this as a very good medium to long term value investment.