Ann: Appendix 4C and Quarterly Activities Report, page-54

It took me about an hour to download the accounts of Logo from the Serbian regulator I.e. Their ASIC and then figure out Logo has not recognised any leave liabilities, annual leave, sick leave, long service leave. Combine that with a mature payroll and you have a material balance that GSW must recognise as a one off on acquisition. This is an accrual I.e. expense, not cash, and it would have depressed the multiple paid.

As for unit economics and tech stocks, again, this is central to my thesis. If you don't think 30c per delivery + organising your own delivery in house creates more value for a restaurant long term than using uber eats or menu log, then the unit economics mean this company can never create shareholder value. They may as well shut up shop now rather than burning through endless capital by growing. My opinion is that this is the case for Uber Eats, Menu Log and so on, in the long term.

If on the other hand GSW can create 10x the value of a uber eats or menu log to a restaurant, whilst earning net profit margins of 30% when mature, then we should expect them to pursue growth like crazy. Like they are.

And we already agree on the value they create for a large enterprise like Heineken. Though whereas you think they will be purchased by the first major implementer, I think their value to major enterprises grows with each additional enterprise integration.

We will soon see if Bane Hunter is a charlatan, or an outsider. Sure, they have grown by acquisition. But I dont agree that these are just to pretty up the top line.