Ann: Business Update, page-42

@Muss1
Appreciate your analysis.

Disagree on a few points:
1) transactional revenue dropping. Whilst this is possible there is no definite evidence anywhere and I think this has been a recurring issue. I would make the conclusion that it may be dropping / we don't know and to wait for more information before making firm conclusions. If you see my previous touch posts and some from moreld you can see some of the discussion on this.

2) not being cashflow positive.
I don't disagree that cashflow is negatuve but there has been a massive investment in growth since 2013. Operating cashflow was positive from 2011-2014- and on the financials at least 2m cashflow on 20m revenue. There is no doubt transactional revenue is higher than this so a base case ex growth investment is probably at least 3m. I see the recent years as an investment for growth... the return on that investment is still a work in progress but generally I wouldn't be surpised if takes 5 years to see the full benefits

3) A 0.5% margin on AFY revenue. Can you source this? I have looked far and wide and have not found this anywhere. I have a suspicion that the % is very low right now but that it will increase to something more reasonable over time.

I am too waiting for forthcoming information and quite probably for at least 6 months before making a call on this. I clearly got it wrong at my buy price with my estimates of downside risk, but that being said I think this is substantially undervalued at the current price.

My main concerns are:
- ROI of current investment in sales and new incubator investments. Given payoff of AFY happy to give benefit of doubt. I would very much like to see some payoff for the additional recent investments made as well.
- Operations with new MD

Very much a wait and see!