My view is lukewarm...was negative until i listened to the Boardroom broadcast.
On the one hand revenue increased well above my expectations, due to the new resource business. On the other hand, the results from their original business, other than 'fleetmanager', were disappointing. Also, the large increase in 'cost of goods sold' offsetting the revenue increase was a little diappoointing.
I have sent the 'presenter' (Michael Fairclough) a few questions regarding the above and am looking forward to his reply. I did have a go at their lack of shareholder communication (eg updates).
What I mostly want answered is whether their increase in 'expenses' can now be maintained at a lower level than the increase in revenue...that's what business is all about imo...increasing revenue at a higher rate than expenses.
Still think its a long term buy...but not as confident as I was before.
Cdchi1
STE Price at posting:
7.0¢ Sentiment: LT Buy Disclosure: Held
