Ann: FY22 Q3 Quarterly Activities Report and Appendix 4C, page-140

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03/06/22

09:33

Post #: 61795759
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Originally posted by Eloi75: ↑

I disagree. Company has cut back expenses dramatically to almost be break even. Lost clients due to either being to small to service or covid and yet still managed to grow while cutting back dramatically on marketing and advertising which as a consequence sales dropped. .

Has made some nice acquisitions which should help with attracting small and mid clients while keeping costs down.

Has opened up a tech hub in a cheap but central hub in Portugal which will help to reduce costs by a few million a year . One of the major cutbacks it did to reduce costs was also to reduce marketing and advertising which as mentioned earlier, it also had a major affect on sales. Now they opening a new hub in Phllipines which will keep costs to a minimum while increasing sales potential.

Also there has been a transition from higher fee product in intranet to the lower fee reach product. This transition would also have an affect on ARR and cash receipts but they still managed to grow.

The last 4C showed cash receipts and ARR drop but it was explained as renewal negotiations and timing which fell outside of the 4c period. They mentioned in last phone call that majority of these clients have now been signed up which means the 1.5m drop in cash and ARR will be showing up on this 4C on top of any new signing in this qtr.

The churn rate has dropped again as it was stated by them that it would after the covid hangover and we should expect this qtr to show an improvement again.

Apart from SP dropping i actually see positives in company if it continues on this path.

Only negative i see at the moment is world economies slowing down, supply chain issues, inflation and food shortages which could have a big affect on all companies hence why indexs and SP are down across the board.

All my opinion based on what i see and read but its not financial advice.

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Ageeed that a lot has happened.

Unfortunately none of that has, so far, moved the needle enough to get the company out of the rut.

That's what I am saying. I don't see what will but it needs to be a lot more than what you've listed (as that didnt work)

LVT Price at posting: 5.9¢ Sentiment: Buy Disclosure: Held
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