This one is a good long term story in the making and I like the...

This one is a good long term story in the making and I like the growing 50%+ recurring software revenues. They play in a large and fragmented global industry but the market opportunity is quite niche. The good news to that is that they are looking to become a large fish in a small pond. Which is sometimes a very attractive business strategy. EBT did this successfully in the AUSTRALIAN gaming market and eventually got taken over by Tabcorp. I think as a 2-3 year story this has all the elements of becoming a multi bagger. But...... FY18 prospectus forecasts are the only short term risk to bear in mind. The company has a roughly 40/60% split in 1H/2H revenues but with a cost base that's split evenly. This means that profit split gets magnified even more with my estimate of 15/85% split in NPAT this year. The company has already disappointed on their FY17 results cost base and so investors will want to see confidence in hitting FY18 numbers. Due to the large skew of sales in the 2H and more so to Q4, and the even larger skew in profitability, the company better paint a clear EBITDA bridge at the half year results on how they will meet these forecasts. For investors willing to suffer a short term potential "air pocket" the long term story will be very rewarding in my opinion. Cheers.