Some decent positives to glean from the report - Riyo has been...

Some decent positives to glean from the report


- Riyo has been incorporated and is to be 'aggressively' rolled out to the asian market and is forecasting 'exponential growth'. Fairly bullish commentary that.




- Management Pay freeze, waiving bonuses. Decrease in travel costs, rental relief and general cost saving iniatives. batten down the hatches, hopefully things improve, but good awareness and preparation to "emerge stronger".




Cash
Cash still at $4.2m, down $0.6m from 12mths ago - largely due to the final $0.4m paid for Spectrum, good to see this balance holding up, and providing plenty of backstop even if there is further economic deterioration. Also worth noting the Bad debt/Writeback expenses increased from +$39k to -$194k from 2019 to 2020.


JCS Asia
Doesn't appear to be far off being profitable. This shows the recent expansion here is likely at a lower cost base (as expected) vs the AU ERP business.  A couple contract wins along the same size announced in Jan-2020 and they'll be right at the money.



RIYO
Hard to draw too much from the revenue as at end of June, given a number of the recent partnerships announced will be after year end or have contributed very little to year end revenues (Epicor announced late Feb, and hard to say if/when any revenue was booked). I think more telling will be the next update in this area, I would be hopeful of Riyo half year revenues of circa $300k given the calibre of some of the recent announcements and the aggressive commentary and positioning around growth prospects.

TEMS
IMO probably helpful that the customerbase still utilising TEMs seem to be larger in nature (more likely to weather Covid-19) contributing to the low churn rate vs 2019. Hopefully this continues nicely softening the way for Riyo and JCS Asia to step up on their own two feet.  



Obviously disappointed, but hard to pin the Covid-19 blame on management or JCS's shoulders. Hoping to see a nice bounce back in the next FY led by Asian and Riyo growth. GLTA.



all IMO, DYOR etc...