At the risk of stating the obvious, something that should be kept in mind is that $590,000 worth of mainly rental biased sales in October will not translate to $590,000 in revenue during October. The only revenue that will accrue from those rental biased October sales will be revenue from installation charges and revenue from the first month or part month rental charges. Other revenues that will accrue in October are monthly rental charges for October relating to rental biased sales made in previous months (or years) which remain "live" or "on foot".
During the AGM webinar, I thought the CEO put quite a considerable effort into making this distinction as plain as possible.
In the short term, the downside of an increasing trend towards rental biased sales is that cash flow improvements may slow down, but for anyone who is looking beyond the forthcoming report for the current quarter's activities, the upside is that rentals are expected to generate consistently higher margins than outright purchases and provide an element of revenue assurance from month to month.
zeno9
SP3 Price at posting:
5.4¢ Sentiment: Buy Disclosure: Held
