Ann: FY2018 Results Announcement, page-12

For me a large part of the investment case relies on growing services (recurring) income as a component of total revenue over time. This is higher grade revenue than the systems revenue as it is more stable & sticky and higher margin. This had been trending well (underneath the lumpiness), but has gone backwards in FY18. ADA has relied on good systems revenue this year to post this result. There is also the dreaded commentary about "competition" impacting margins in the systems space. I don't think the market likes these things, and the large director share sales earlier in the year are not a great look either. The company explains that systems revenue has been impacted by the loss of the software service component with the FAA which is under protest by ADA. This is expected to continue into 2019. So, it seems like the company will be relying on systems revenue growth again to generate overall revenue growth in FY19. And FY18 has been a cracker, so it will be a big ask. On an EV/EBITDA of 10, it is priced for growth.