Another 4C, another insipid statement of mediocrity. Despite...

Another 4C, another insipid statement of mediocrity. Despite decreasing revenues over the past 4 quarterlies, at least the gross profit margin had been moving in the right direction: up from 10.89% in Sept 21 to 13.46% in Jun 22. Sept 22 qtr has shown a reversal to 11.94% on virtually identical revenue as the previous qtr. Yet the author of the Sept 22 report chooses to highlight the increase in margin from Sept qtr 21 and then has the audacity to say that this was due to a "focus on higher margin placements." In a strong employment market, surely the past 3 months should have seen accelerated growth of or at the very least maintenance of the gpm from Jun 22?

The Sept report states that one of the key areas of focus for the Dec qtr 2022 is to "continue to grow gross margin." Sounds reasonable if it's already on an upward trajectory, but not if it has dropped 1.5% in 3 months against a supposed focus on "higher margin placements". But where is the emphasis on net profits for shareholders? There have now been 9 straight years of operational or statutory losses totalling over $35 million against revenue of over $1.2 billion, underperforming in a sector where its competitors are not only doing well, but often, like the HiTech Group, providing strong dividends for shareholders.

If IGN can't make a profit in a bull employment market, then its strategy needs changing. While it is positive to see CEO Tim Moran take a significant personal shareholding in IGN, his efforts need to be bolstered by others with fresh eyes, relevant experience and significant stakes in the company to unlock IGN's true value for its long-suffering shareholders. The share price has now dropped from a peak of 26c in March to a near 52 week low of 7.7c and a measly MC of $6.9 million with virtually no action on the share register, reflecting the market's view of the board's direction. As a long-term shareholder, I will be voting for 2 new directors, Daniel Altiok-Brown and Trevor Robertson, at the November AGM, to reinvigorate the board, forensically look at costs, laser focus on higher profit margins and put net profitability at the centre of all decision-making. IGN shareholders deserve better.

As a wise person said: "Insanity is doing the same thing over and over again, but expecting different results."

None of the above is intended as financial advice. Please do you own research.