Ann: SMA Revenue Update, page-12

Just some ramblings that may be poorly connected ,but food for thought nonetheless.
# SMA is gradually maturing...More focused.
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# 2 distinct businesses:
1) Logisics...Reliable revenue generation....Probably profitable as a stand alone business..... limited growth prospects (could be wrong there)....Does underpin the growing China operation.
2) SmartPay....Seems to find its feet.....Capable of exponential growth....8 months growth equates to 25% CAGR for 10 years.....This is awesome growth by anyone's standard.
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# During the last 12 months ( Dec'13 to Dec'14) ,SMA increased its NTA ( purely cash/receivables/payables....No hairy fairy intangibles or capitalized expenses) by around $1.9m (from -ve $216Ks to +ve $1.67m)....This is after $2.8m share issue (after costs)....There is "a loss of value" of $900ks....Very respectable for a business in its growth phase that is not self funded yet & still relies on "external funding"....This loss of value did not only go to pay for corporate overheads (a listed outfit needs a minimum of $1-2m just for corporate overheads)....To my simple mind , SMA has actually created value.
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# Momentum has completely disappeared from the sector over the last 12 months.
Surprisingly SMA is the outright leader of the pack...."only" down 20%.....MBE ,NNW , MKB ,SMP are remarkably similar....All down exactly 40% over the trailing 12 months.....Never underestimate outperformers.