AGM summation

Well folks another year has passed and we are looking at a completely different company with a new CEO, new Chairman and a new name Impelus (IMS). Other key points are as follows;

1. Staff shed from 180-80 which wasn't a pleasant thing to do, but has ensured they are lean and mean for the new performance marketing direction.
2. MBE is like an out-house digital marketing company instead of companies trying to do it themselves.
3. 80% of companies now outsource these kind of marketing services.
4. DCB conditions still not improving so focus will very much be with marketing with higher EBITDA margins on lower turnover.
5. AdGlu performing very well and C2B fully integrated and also performing nicely.
6. The biggest advantage MBE provides is to minimise wastage and deliver measurable return on the clients marketing spend.
7. Ad fraud costs over $6 billion p.a where the client pays for an ad which never appears, or it's placed next to something inappropriate. MBE provides guaranteed delivery of ads which actually appear.
8.MBE are going global with this model with their current addressable market only a fraction of the OS one.
9. Interestingly someone from Roger Montgomery was there asking a lot of questions. So too was a lady from Westpac.
10. There was a detailed question about impairment of goodwill. Their auditor assured the room this is a very rigorous quarterly process with the board challenged to get the discounts correct which affects the NPAT and SP.
11. Clipp sale negotiations are in progress and there is a lot of interest. They won't tell us the numbers, but they will get around $4 mil hopefully. It's draining a slight amount of cash ATM.
12. MBE one of the biggest in the space, but others include Rokt, Cohort & Jack Media.
13. They are doing well in the various vertical spaces of insurance, banking, travel and telco's. There's another sector which is doing very well, but doesn't want to say given the competition sensitivities. All of these have a huge appetite for high quality leads with measurable ROI.
14. They are divesting non- core assets like Egg Mobi and Clipp, whilst getting the restructuring costs out of the way so they can focus on performance marketing only and globally. They have taken the hit with blue sky ahead and higher EBITDA this FY.

I spoke at length to Neil, Drew and Ian and was quite impressed with the way each of them communicated the simple message of what PF marketing is all about. That is to generate measurable leads to targeted customers which are "highly likely" to purchase their product.

Most companies who advertise on TV, outdoor, radio, magazines and newspapers do so with a stack of wastage as their target market is only a fraction of this wide audience. MBE cut directly to their target customers and the client only pays for results. In other words, absolute confidence and value for money when they spend. This is a vastly different and more credible company to the DCB one which obtained money in part by customers who didn't know what they were getting.

I'm pretty happy I loaded back into MBE with my other top 20 mates also there in attendance and very pleased with the new trajectory and holding for the medium term. The top 20 holds 24% which is quite tight and will hopefully tighten from here with or without the funds. I hope it's more of us loyal mums and dads who put them in the draw and finally make the big kill like last time at 33c & 44c.

There is very little downside risk at 5.6c IMO with much confidence to be drawn from todays AGM. I hope this helps those who didn't get to attend as this was all the verbal stuff not in the presentation.