SW1 0.00% 2.1¢ swift networks group limited

Ann: Growth in Core Verticals Q2 FY21 Results & Quarterly Report, page-18

  1. 1,958 Posts.
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    Jumping the gun a bit aren't you maxkieh?

    Second quarter cashflow included $950k in lease repayments and $600k in product development, much of which will be expensed, I expect, hence the slight dip in EBITDA margin.

    For those not familiar with the SW1 story (ie Maxkeih etc), 2 years ago, previous management made an appalling decision to acquire Medical Media. Not only was it loss making at the time, it was bought on the premise of creating synergies with the existing platforms. It was never going to work, and it has cost shareholders plenty of value, time, opportunity cost etc. Worse, it was laiden with a bunch of really crappy leases over the hardware. Still, Pippa and her team have turned it into a sustainably profitable business over this time, which is a massive credit to her and her team. However, given the company intends to extract some value for this business, paying out the leases at least makes it a more appealing proposition for a buyer and reduces the liabilities. On product development cost, I think expensing those costs is a smart idea (assuming thats what they've done).
    It might have been wiser to wait until the 1/2 yearly before jumping to conclusions tbh, but each to his own, I guess.
 
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