First of all, thanks to PC, MW, MF and IAM management to organise the presto in style IMO… This is first RTO who announced the presentation and the holders were able to grasp the idea of the business from the management themselves and ask questions to clarify things. Secondly, thanks to IAM holders who were able to attend, it was nice meeting you all. Lastly, this is my own reflection of the day… might have misunderstood few things as well so others who attended can correct me and add things as I would have missed plenty. This is also not a buy, hold or sell recommendation as always please DYOR.
Wow where to start… It was conducted in a building where AMP has an office (just a coincidence and nothing else as PC categorically said in the meeting) along with Allied Finance WA and Australian Superannuation and Compliance WA… So the building got this vibe and I was excited as soon as I entered the building. I was a bit early so was able to catch up with PC (I think he is going to be our favorite as he is very approachable through Social media and he reads HC), MW and Sonu Cheema.
Meeting started on time and we could ask as many questions as we wish which was excellent IMO…
Corporate Vision
As I was buzzed after reading it yesterday, so I asked the question…
How confident IAM is to be the number one and achieve this corporate vision?
Answer: PC said they are confident to achieve this as IAM offers offshore processing where they have equal to no competition and fintech solutions. MF later in the meeting added on the similar note. He said they are trying to create an industry. They want to make sure that they to do it right and grasp this huge opportunity.
Most of things we already know and they were discussed in further depth. PC and MW explained their approach re securing licences rather than practices as if couple of large licences being secured and roll out into binding agreements will be way better than securing individual practices. Yes, individual practices means instant revenue in short term but large licensees is the approach.
HoA with Sentry?
Its going well and Sentry will have a dedicated staff just to manage the Intiger HoA and may be rollout later on like in the next quarter. On the similar note, question was asked from MF re his milestones. He said if its rollout to Sentry there would be a chance that he will be able to reach all his milestones from just one licensee… He also said he is not worried about his milestones at all as he is 110% confident that he will achieve those… His aim is to go way bigger than those targets…
Another Sentry style agreement with a large licensee during this quarter
PC and MW said that’s their aim… and they would not have put it in the presentation if they were not confident. However, they can’t assure the timing of it with 100% surety… the process is long with these large groups, its also time consuming and can take months to be in place… Compliance is a big issue for the large groups…
While talking on the similar note, MF added that IAM have oceans of demand from both individual practices and licensees. As far as my understanding is concerned IAM is in conversations with perhaps all the big groups if not definitely more than two. Most interesting thing was… IAM has a waiting list which is as long as 13 months… and one of their staff member has kind of become expert to tell these individual practices that they are in conversation with licensee to work this out.
Current clients and revenue
They have approximately 9 clients thanks PC for telling us the exact number. These clients are paid clients including PC’s own practice of IPAC. PC said they pay approx. 180k per year. Another gentleman mentioned that he runs a practice and is IAM’s client and IAM shareholder. He also said he is happy with the services. They pay approximately 9k per month to Intiger. So revenue figures per practice depends on the services IMO and can vary from 100k to 180k…
PR and shareholder communication
I asked the question and in fact I was a bit rude… hell yes, as being a holder of RSL/SRT/IAM I have been frustrated as a holder due to lack of information at times.
PC answered it perfectly tbh. He mentioned his involvement with IAM as fairly recent as he became the director after the approval by IAM holders and IAM relisting since September. However, they are taking it serious and will keep us informed as much as possible. However, keeping in mind their small team and huge demand for the services its not easy but they will do their best. Both PC and MF stated that it’s very important for them to improve shareholders communication. PC even said we can tweet him or even call him if we want to discuss anything… But I think we should not exploit his generosity… LOL
Risks:
We have not touched this in much details… however, MF stated that they want to do it right otherwise they will be seen as someone who had this opportunity and was not able to grasp it…
SW
This is the first time she participated in IAM meeting.. she joined us from the Manila office… and what a treat it was… she updated us on the operational side of things… She mentioned that she is recruiting and training like 20-30 staff members every month… I asked are these staff members new on monthly basis… and she said YES… new staff members on top of 70 we already got… she stated that the demand is extremely high for Intiger services… Same thing was mentioned by MF who was sitting in Indian office.
Management team
I know we already have discussed this so many times but I think its worth mentioning again. After the meeting, few of us were talking with PC. He stated that its his first role at ASX. He along with MR would not have put their names at stake if they were not confident…
All in all, I think IAM future is extremely bright IMO and keeps improving on daily basis…
All the best to us all… As always buy sell or hold based on your risk appetite.
Cheers
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