Ann: Award of material customer contract, page-11

Seems like a pretty decent contract and impact to CTD revenues

Some context:
- Prior to Covid (FY 2017-19), Europe had grown TTV from ~AUD 600m to 1.1bn and was generating ~8% revenues off that...so 95m in FY2019
- in 1H23 Europe had TTV of ~900m but revenues were only ~5% of that which was 45m

So if they were annualising at ~2bn in TTV in europe at a revenue conversion of 5% would mean revenues of AUD100m prior to this contract
=> this contract will add ~1.5bn in TTV annually and if it converts at 5-8% then we get another 75 - 120m in revenues (you'd want to hope its at the higher end given they mention 'highly complex services and logistic support" which I interpret to mean high touch and hence more expensive

The positive is that it starts immediately (well started 6 weeks ago?!?!.....perhaps they brought in CTD for a trial and have now formally agreed a contract incorporating that trial period?!?!)

As I said, a decent little contract.....now all they need to do is improve on that TTV->Revenue conversion margins across the board, but adding at this scale (and a govt contract as well) can only help