Hi Vet,
With all due respect I think your statements above are made with a complete lack of understanding of the business - and you are not alone.
Sure its very easy as a sceptic and non holder to make the above observations.
However the company has been very clear in the last series of announcements that they have had to use third party processing which has impacted the margins.
So I ask you a question? Would you take the revenue if it was there and look at increasing the margin at a later date or would you simply turn it down.
The GPTV at 600m is Contracted revenue. The margin on this business will improve significantly when they have the ability to process inhouse.
I would also point out that the revenue will be (not quite complete) audited so there is limited ability to shift this around and "pull levers"
I don't consider the lag in cash receipts anything significant for the level of turnover. It will be captured this month/quarter I am sure.
They have always had some abnormals and connection fees and I expect this to continue albeit at a lower percentage of overall revenue.
Who knows where this quarter will land but I am investing in this business for the long term - a period over which all good companies are built.
They are in a massive sweetspot with the current disruption of the big banks.
On a final note I think the cost control has been exceptional. Go take a look at any other ASX company with this revenue growth (and there aren't many) I guarantee you that OPEX will be higher and the GP will be lower as they invest to acquire revenue.
Good luck and hope you get on board at some stage.
ISX Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
