Well.....unfortunately as I expected and my little glimmer of...

Well.....unfortunately as I expected and my little glimmer of hope removed....I finally got to watch the recording and the headline is this-the company will need a capital raise and it needs a new management team. The hype was as usual by the CEO Jason but at least he is having a crack, the CFO was like watching paint dry without the high of smelling it. We all get the hype and spin-bordering on just outright lies-that's been stated enough. The numbers don't lie, that's why I always have faith in the ASX. It's companies like Envirosuite that make the regulations what they are.

P&L is terrible. I put up some baseline numbers prior to the announcement and even that was beyond their capability:

		Base	Actual
1	TOR	58	57.8
2	COGS	31	28.7
3	GP	27	29.2
4	OPEX	32	40.3
5	NPAT/NL	-5	-11.1

Revenue on track, never been a problem per se, would like to see it turned on quicker and where the revenue comes from (e.g. Water) is the problem. COGS improved-could be better deals on the hardware/monitors they were talking about or just more software, either way good result and led into a better than what I thought GP.

But geez............OPEX is a joke. Those 2 have zero ability to manage internal costs. The market has made it clear that profitability is needed, and this sorts the competent companies from the incompetent. Now-not a direct link, but Qantas, CBA, Woolies, Coles all got the message (at the expense of the customer I might add!) but they have had great results. They worked their internal cost base down as well as grow their revenue. Envirosuite has done its old trick-grow yes top line revenue, but out spend. There is no choice-a cap raise or takeover is needed, they don't have the time to turn the business around. The Board need to absolutely throttle the spend. I would question if the board are doing their duties as required. They are leading this business into the ground I'd be calling my lawyer if I was one of them.

Regions/Product mix
Clearly the best region was the Americas (again) and the Industrial product, their core. My only call out on Americas, as much as I rate them is that they do carry the share of one off revenue-but looking back they always have.....I've always been impressed with Americas and yes a soft spot for sure, but the numbers back that up. EMEA, feels like the little engine that could, can see it, but it is the same names being put up quite regularly, but there is growth, slow growth, but growth nonetheless. The don't split the regions/products down, but I get a sense that EMEA/Aviation seems to be the combo there-based on the growth and names. Any upside is good upside IMO.

APAC and Water are absolutely terrible and if I was a big insto I'd ask for a Pauline Hanson "please explain" to the boss of APAC. He needs to be sent on his way. They also said in one of the sales call and in the current presentation a "one off churn that isn't our core for APAC" or to that effect. I think it was heavily significant. I assume based off the Q3 sales update they mentioned the Australian Department of Defence-how do you lose a contract to them? They are renowned for bloat, over priced contracts and slow response-something must have gone very wrong. So it took me a fair chunk of time but I found this link News: Casper completes installation of 35 NMT's for Department of Defence - Australia | Casper - Shared Insight . Kidding? Australian business loses to a Dutch company? How???? They keep saying it is not important etc. etc. but they keep mentioning it???? Granted my understanding is limited but if you think about government contracts, Australian companies come first usually. I want to know how the "market leader working with NASA" loses on their home ground to the Dutch.

Water
The CEO could not answer the question by the Bell Potter guy-did not want to give any concrete guidance at all-this is an absolute alarm bell for me. Water was the reason for the last capital raise-go back to the deck the CEO put together. Millions has been burnt and nothing to show for it. He did mention having a gun team-the numbers don't reflect it.

Adjusted EBITDA/Management EBITDA
Call it what you want-they are burning cash and a cap raise is imminent. Could all be fixed by controlling OPEX but they just can't. I'm sure there are many nice dinners and "conferences" on the company cards at the moment. Feels like the band playing on the titanic.

I'd like to sell out, but there is just no liquidity, anyone want a chunk of shares at 8c?????. My sentiment has moved to sell.


I'll keep pouring over the Annual Report-the numbers give it away.

P.s. what a terrible presentation-what were they thinking? Microsoft 95 launch? White men trying to get the market hyped up? Tried to be cool and techy and all I saw was old white men looking bored behind a Disallowed salesmen CEO and a CFO that should be fumbling the local book club's numbers.

I really want to be optimistic, but I'm struggling and would love to read other views.