Ann: Audited Financial Statement and Annual Report, page-4

Not a whole heap to glean from the report, which is a sign JCS are doing the right thing and keeping shareholders well informed, via regular updates and the recent webinar. I too am looking forward to guidance for the coming year.


a few of my thoughts below.



ERP
Growing nicely, I'm expecting costs will lift this 12mths with expenses in the Asian growth strategy in both Lease/ & employee expenses. This will likely keep a bit of a lid on the ERP bottom line contribution as I'd expect revenue growth of another 7-10% this year, in turn contributing a similar $2-2.5m profit before tax.

Riyo
The big unknown. Outlined as one of the 3 pillars of growth. Riyo's had a decent incubation phase where they've refined the product offering, incl test pilot customers. I'd hope that with the investment, sales will roll in, however looking at the JCS business model which I believe tends to rely on positive interactions and superior service  there can be a lag in word of mouth referrals contributing to  snowball. The lead in could be initially slow this FY for Riyo as they start out, I'd be hoping for revenue of circa $250k-500k in the coming year and would consider that a big success.

JCS Asia
Booked 355k Revenue during the FY. I would hope to see a material lift with Canning on the ground this month, and huge focus on opportunities here. With Spectrum becoming a 5* Netsuite provider, that alone should result in better margins even without the addition of any further customers. I'd be hoping for at least 100%+ lift in revenue there over the next 12mths.  When reviewing Note 25 in the report, the following comment was made: "After closing more qualifying opportunities in the April to June 2019 period, than originally forecast, the deferred payment which is due to be paid by 31 August 2019 was S$334,074 (A$351,805). The $40,472 difference between the estimated deferred payment and actual deferred payment has been released to the Statement of Profit or Loss and Other Comprehensive Income and is included in other expenses." Positive signs there. I also think they will likely add another business to scale up customer numbers quickly and expect that will be before the end of this calendar year. The follow on up-sell (Riyo) opportunities will improve numbers for FY 20/21 I'd think.

E-Commerce connector
"On 8 April 2019, JCurve Business Software Pty Ltd, a 100% owned subsidiary of JCurve Solutions Limited, purchased the JConnect E-Commerce connector from Pistachio Media. The E-Commerce connector links a customers website to the JCurve edition of NetSuite. JCurve Business Software Pty Ltd previously operated under a licensing arrangement with Pistachio Media with both customers managed directly through JCurve Business Software Pty Ltd as well as some customers directly being managed by Pistachio Media. The total cost of the asset acquisition was $100,000 which was settled in cash on 27 June 2019. Purchase costs of $3,480 were included in professional fees in the Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019."
In my opinion it looks like a good cheap acquisition that removes the need for JCS to pay fees by bringing this in-house for a small upfront payment.

Shareholders
The number of shareholders at report date has dropped from 583 to 530, reflecting a consolidation in the Top 20 holders which has increased from 67.86% to 72.99%. A stable base of holders, often at times leading to periods of in activity in the share price. Hopefully we'll see an improvement here as the growth initiatives above add further to shareholder value increasing investor interest, the share price and turnover.


JCS is well on its way to becoming a well rounded business with diversified revenue streams and a solid foundation. All in all, I'm very pleased with my holding and think those with a longer term view should do reasonably well here even when assuming a moderate growth view from the Asian/Riyo businesses.

above are all IMO, please DYOR etc...