I am more familiar with their taxi payments systems and taxi services.
The company gets a natural uplift in profits everytime there are regulated fare rises across all states. Saturation point is reached when society becomes cashless and all transactions are electronic (god forbid). I would say that they currently process between 45 to 50% of all taxi transactions with the balance being cash and individual paper voucher factorers.
The amount of further costs they can strip out is related to the transfer of the balance of paper transactions to electronic.
The key to CAB is the duplication of what they have achieved in Australia in overseas markets for the company's future growth when growth in Australia will inevitably slow (but not stop).
They have wisely adopted a jv approach in relation to overseas markets and they are also diversifying with their bus contracts.
But their main business at the moment is the full integration of all taxi services by providing bureau/communication services to taxi operators (through acquisition of existing operators in all major city centres), acquiring and leasing out taxi plates and payment processing services. As you can see, they are clipping the tickets everywhere!
Wise heads run the business.
CAB Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
