Ann: June Quarter Results Presentation, page-93

This is an organisation that has always stated the the initial years were for building the infrastructure - technology/licencing/partnerships. The subsequent Covid years hindered this.

A question for you... why do we always consider that growth in a company / sportperson / movement should always occur in a linear fashion? In reality, from my experience it is not usually the case. Yes, the trend is your friend but depends on what time frame you are looking through.

In answer to your question, at some stage businesses generate enough capital from their operations to re-invest to grow their business or they die. Before this obviously capital is used .. the transition from growing a business to consolidation to maturity does not mirror the turning on of a light switch. It is a transition and is not usually linear from my experience.

Short Answer: Scale the operations, optimise efficiencies and cross sell other products to existing customers. The primary reason why I invested in this business is because I believed it was scalable (payment processing) and not easily reproducible (requires financial licences/compliance/technology).

Longer Answer: Part One.. ( have to do some other work .... )

1. Focus on Novatti's Core Strengths: Concentrate on what the Novatti businesses do best. Emphasis the Novatti unique value proposition. Satisfied customers bring more satisfied customers. Reputation is important and this takes time IN the market (not timing the market - Pun) This will assist to attract more customers and continue to build a solid reputation. This all takes time (and money).

2. Reduce operational costs - staff/duplication of resources (ie: head count down from 180's to 160's we are told). Keep your overhead costs low. Look for ways to reduce unnecessary expenses and operate as efficiently as possible. Reduce duplication in the many different business departments within the Novatti organisation. Also means that a staff member from one area will have better knowledge of what else within the company that can be offered to assist their existing clients. Cross-sell products. Do deals with Accounting Software companies - Reckon.

3. Listen to your customers Feedback: Listen to your customers and use their feedback to refine your product or service. Satisfied customers are more likely to become repeat buyers and refer others. They are also live market research participants. What else can Novatti do to help existing customer "Solve their Problems/Requirements" - that is what good businesses do.

Partnerships: How easy would it be to obtain finance for my business if all I had to do was to apply through my accounting software and authorise the financial entitiy (IBOA) to access the last five years of my financials (Reckon) .... approval of short term or long term finances in minutes ... in the future via AI up to a certain amount.. Scalable ... Yes... as opposed to now .. getting my financials in order .. sending to the bank .. back and forth .. blah blah.. time wasting...

5. Marketing: Utilise free or low-cost marketing channels such as social media, content marketing, and email campaigns. Trade shows, industry think tanks and conferences, etc. Consistent and targeted efforts can yield positive results over time. Word of Mouth and Referrals: Encourage your satisfied customers to spread the word about your business. Referral programs can incentivise Novattis customers to refer new customers.

6. Provide Outstanding Customer Service: Exceptional customer service can set you apart from competitors and lead to customer loyalty. Happy customers are more likely to become repeat buyers and advocates for your brand.Iterate and Improve: Continuously iterate on your products or services based on feedback and market trends. This helps you stay relevant and appealing to your target audience. Blah blah ....

7. Bartering and Trading: Exchange products or services with other businesses instead of paying cash. Like investing in start-ups or providing payment services to startups.. From my understanding IBOA was aiming to be a B2B fintech payment bank. Despite much commentary on how to compete in the consumer space. (Yes I know international students also ....etc.)

8. Start Small and Scale Gradually: Usually I would say this should be the case. Question is if you are attempting to provide a global payments entity - you may not be in alignment to do this. Always a question of strategy... Perhaps the bigger potential clients want a one-stop-shop that covers a larger goegraphical range..

Cheers Anton

PS: DYOR - What would I know - just another mug punter on a stockmarket discussion board...
PPS: I dont work for the company but have a large stock holding...