"Annuity revenues strong & growing – Insulation against turbulence in market/industry conditions and currency fluctuations"
"Acquisition of Peace • Impressed by complementary fit of the Peace product • Strength of the user base in USA and Australia • Strength of brand and reputation • Leverage of ‘like for like’ business • Increase Hansen’s revenues by approximately 50% • Offering an extended product development capability in NZ • Creating largest independent industry CIS vendor – 350+ employees • Purchase – comfortably funded from existing cash resources • Anticipating profitable and cash flow positive operations this fiscal year"
Hansen moving to be the largest player in the second tier, huge market
"Challenges • World financial market decline may lead to delays - In discretionary spending - In new project commencement • Our entry into USA market and enhanced presence in our industry will generate interest from our larger competitors • Integration of the Peace business"
Peace already contributing. Delayed projects mean existing systems need maintenance? Annuity style revenues again. Hansen was the only buyer for Peace. What happened to its competitors? Projects are 10 even 15 year relationships. Billing critical. No billing No revenue. Clients ask themselves; will this company be here in 5/10 years. If rivals can't bid in a fire sale it must raise questions about their balance sheets and ability to compete long term. Hansen is committed to remaining public and a strong balance sheet because it is basic for clients to want to assess their financial strength. Barriers to entry; Need reference sites to sell product, (have to prove it works). Probably the only way into the industry is through purchasing existing players. Fair to say First Data, a big, big company completely stuffed this.
Peace focused on the very big retail customer organisations. Hansen area of expertise towards industrial customers.
"Outlook • First half fiscal 2008/9 is tracking ahead of last year’s record performance excluding any contribution from Peace • Peace is expected to be ***accretive**** in fiscal 2008/9 • The future for Hansen is bright & promising • Positioned in industries undergoing considerable change which we are well situated to support • Leverage market strength of product and reputation of Peace • Outstanding team of professionals working for us"
Share price? Sign of the times? Defensive characteristics with huge growth potential. Iorn-clad balance sheet. Long term contracts. No nonsense down to earth management. Got the, for lack of better description,"Australian Sport culture". Here to enjoy the game,our mates, the work etc but no bullshit or religious hype about the focus to be first.
--------- I have a vested interest in Hsn DYOR
HSN Price at posting:
34.5¢ Sentiment: LT Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)