So just roughly here based on these pro forma figures and...

So just roughly here based on these pro forma figures and current run rate.

We can deduce that initial drawdown is lower, enough to cover the greensill facility only. Why? A number of possibilities but hoping it's just active balance sheet management. Otherwise it looks questionable.


Receivables/payables being managed well considering.

Debt: always a hot topic around here. This leverage is one of the main reasons I'm here. I had taken the risk early, in hope of greater ROE, too early it now seems but regardless it remains attractive.

Net debt / EBITDA ~ 1x. Nothing wrong with that.

Interest cover ~ 5x.

D/E. 1.15
Profitable tech company, so well within range by my standards. This is the EPS driver going forward.

Current assets/current liabilities much healthier. Can't see any issues going forward.

I expect actual FY16 results to show a material increase in costs, as flagged by the CFO in 1H16 results. Also amortisation cost due to the track purchase. All known by the market to date. Might be ugly but still $3m EBITDA per quarter coming in during this transition period.

The growth strategy is aggressive, but six million cash to work with now. A nice figure.

Need to see these added costs translate to sales in 1HFY17 at the least. (Both segments)

Also would be nice if they start calling a spade a spade as I think the false smiles are having a detrimental effect on the market, as seen by current trading. I guess the flip side is that it is seen as excuses. Anyway going on the numbers alone I can't say I have much confidence in Hans as subscription CEO, a position which is potentially a double up anyway. It's a unique business but can't help but feel that money would have been better spent on someone external with more experience in integration of this size. Perhaps not too late. Just a view from the outside. Could be way off base?


October results next milestone for me. Market clearly not expecting much. Current sentiment could provide an excellent entry point or top up for the brave.

Looking forward to a healthy FY17. Maybe some deals haha. Bears have hold of this now. Just whenever you are ready team....