Ann: Connexion Telematics OnTRAC Renewal with General Motors, page-114

‘... as a springboard to develop additional sales with GM and then beyond.’

Wrong, I wrote the above. To be clear (as with the share disposal which was not Director selling, it’s not that hard to understand) they will have been working hard and well on building the foundations for future growth. If you expected it all to come to a head in those initial contract 3 years, with Covid chucked in, you’ll rightly be disappointed.

The 3 years work will show itself over the next couple of years. First bit of evidence is that they have the renewal. It’s not the same. When you perform and have bargaining power, when a customer is happy with you, you can negotiate better, longer terms. So we got 5 years. BIG TICK.

I say you secure 5 years if you are working on some good things and you can then negotiate with the ROI (Return on Investment) being spread out. So, as they have said, they have been working on the value add with GM. Most probably also working on other customers, but you wouldn’t expect to hear ANY information about that, for obvious reasons (competitive advantage, confidentiality clauses).

Then when you consider the structural change to the board, we are now set for the share price to spring higher, hence the term ‘springboard’ I used.

Happy to respond if you add something to the discussion rather than just not find my logic clear without reading carefully.