Ann: Dividend/Distribution - TNE, page-12

This was a really good result. The SAAS revenue is growing dramatically and with the sunset on the on-premise solutions being October 2024 their recurring will rise dramatically over the next 2 years as people move before the sunset. Some will go to market and replace but the overall impact should be a significantly higher recurring component to their earnings. Scientia seems a good acquisition with good revenue and profitability.

Some really good takeouts

• Trade Receivables have increased but in line with revenue increase. Still a bit high which shows customers are not paying on time. $33.5m on revenues of $172m seems a bit high but an improvement on previous years which shows customers are getting happier
• Strong war chest to buy up complimentary products
• Strong growth in Local Government, Education, and Government. These are resilient markets who have money available. There were challengers in these markets that they have won against (especially Oracle and Microsoft) and this means locked in revenue for many years
• Consulting Services and UK were badly performing parts of business that now seem to have turned around
• Good and conservative approach to capitalisation of R&D
• SIgnificant R&D spend which should keep them relevant

Not sure why the share price is decreasing. This is a good result which should meet market expectations. They have a plan, they are sticking to it whilst taking up opportunities for acquisition when available.