Dividend is going to be cut next half to probably 1c is my guess.
I'm pretty happy with the business still.
Revenues and EBITDA growth is what i'm looking for and think they will achieve.
Depreciation and amortization is going to be overstated, good quality software assets will last longer than they think. And a lot of it is going into new products too, which will have more upside.
And with increased revenue as they scale, these software development costs will become less important, forecast to fall to 20% of revenue or less.
So i'm staying in. Once they can grow revenues up to 100mil or higher, they will be very formidable.
It's always hard to tell the difference between maintenance software expense, and well thought out development for future opportunities, but I think that it is the latter in this case.
CL1 Price at posting:
$1.81 Sentiment: Buy Disclosure: Held
