NNG 0.00% 2.0¢ nexion group ltd

Yes but not immediately. The recent rationalisation has reduced...

  1. 439 Posts.
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    Yes but not immediately. The recent rationalisation has reduced the OPEX by a considerable amount (>$1M) but we are still servicing some low margin deals. We have to exit the low margin revenue and trade into new high margin revenue "gracefully" and that will take a few quarters. It costs $70k/month just to be on the ASX so theres a natural revenue hurdle of $8M at 10% FCF to cover the cost of being listed in the first place. Most ASX businesses in our sector trade between 8% and 15% FCF. Thats a long way of saying that cutting further to a lower revenue number albeit higher margin immediately isnt a sensible strategy. Our operations focus is to double down on the scalable high margin revenue including VM's, VOIP, Satellite, Stoage-as-a-service and network management. The team is also exploring some new product lines including Oracle RDMS hosting.
 
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