Ann: Half Yearly Report and Accounts, page-5

From thoughts posted a few months ago:




I think today's update - specifically for a $1m Revenue upgrade translating into more than a $1.5m increase in EBITDA - a goes a long way to validating CCR management's insistence that margins become temporarily depressed due to on-boarding expenses, and that once the on-boarding process is completed, those costs get backed out.

Which means that the current P&L, which also reflects embedded on-boarding costs, is also pregnant with a few pleasant surprises in the future.  

So even though management had been at great pains to explain this dynamic, the market's predilection for focusing only on the very short-term meant that it had some time ago totally tuned out to management's justification for the seemingly-sluggish operating leverage.

I expect today's update will go some distance to getting the market to now think:

"Gee.  Actually, it looks like the company's executives weren't making it up after all."

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