Ann: June 2019 Preliminary Financial Report, page-4

@svrn Why are you deleting responses just because someone doesn't agree with you? That's not the point of the forum, I appreciated your comments and believed them to be valid.

The asset situation has been alluded to by the company, they increased "debt" by 25% due to subscription/saas revenues increasing and the reclassification of these incomes, which makes it look a lot worse than the reality is.

They also state that cash at the moment is nowhere near as valuable to the organisation as investments due to the terrible ROR.

I also think your comments about the business not making money is slightly off @MovesLikeJagger they highlighted a drop in revenue on existing on premise products as they phased them out, losing some 400k in ARR over the last 24 months. Which when combined with the doubling of SaaS revenue, almost balances out.

I agree and have agreed with you previously regarding past management actions, you won't see me trying to make excuses for those decisions, I benefited from them (divi's) and even I was pissed about getting them, but ultimately, I do think the business is showing a turn around.

Pros:
* 12% per month increase in SMD network volumes (was 15% a few months ago)
* The turn on of cash flow in the next 6 months, post september the SA allied health stuff will be producing revenues, and I'm unsure what I expect but I can't expect it to be insignificant.
* Doubling revenues in the SaaS business.
* Massive pay down of debt, whilst holding onto the line of credit, meaning that as you have said, cash balance is touchy, but it's also not got a great return atm, so if we can borrow at a rate lower than we can return, we profit.
* Extremely tight registry, when it moves, it'll move.
* Contract Liabilities up 25%, that's not insignificant, great long term, short term makes the business look like it's deteriorating.

Cons:
* It's healthcare, businesses are possibly the most risk averse on the market.
* Continuing "promises" around a return to profitability.
* Management has a track record of strange behaviour.

I've probably missed a few things in here.

What I'd like to see though, is a further tightening of purse strings around internal expenses, salaries and whatnot would be a good place to start. The full report will be useful as well as professional services revenue went up and I'm interested in seeing exactly what makes that up. Because off the top of my head, I believed that previously it had been stated that these would be actually decreasing in the future, but what I understand is that as the amount of customers we sign goes up, our professional services revenue goes up, because that constitutes revenues generated from provisioning the client to the service, which they pay for.

TLDR: Overall happy with the prelim, I wish they'd have posted better revenues but I think it's clear that a turnaround is in action, I'll probably be adding onto my holdings, but still keeping a keen eye on the next 6 months, not to mention it's probably at least 12 months before we see the SA Allied Health stuff hit the books, because it won't fall within the next 6 month reporting period as September it starts, then add 6 months.