concerned about organic growth. concerned about senior...

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Bobby75

229 Posts.

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20/02/20

17:58

Post #: 43053805
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Originally posted by neoteric: ↑

This is what we get when our management is shonky in their guidance and reporting.

Firstly, organic revenue growth has continually been revised down over previous periods to the point now where it is given NO mention at all in the 1H20 Report. Instead we get a breakdown of recurring and non-recurring revenue. This is standard practise for technology companies with faltering revenue growth.

Secondly there was no guidance to the additional sales and developer roles, and the initial duplication of some roles offshore - so we (investors) could be prepared for lower margins this financial year.

Thirdly, the Presentation misleading states NPATA to be $4.2m (should be ($4.0m) and excludes not only acquired amortisation, but also regular software amortisation (which should not be excluded from NPATA). Another trick companies opt for when the financials are below expectation.

This all comes on top of last year not isolating the write-back of deferred consideration from their FY19 earnings.

I'm now seeing the need for periodic acquisitions, and this will be their avenue to more earnings growth! Thankfully net debt has been reigned in and a capital raising shouldn't be required.

Hopefully management will learn a lesson here, better to be clear and honest with the public.

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concerned about organic growth. concerned about senior appointments with poor track records. I'm with the crowd .. buying at $2.

OTW Price at posting: $3.20 Sentiment: None Disclosure: Held
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