With this being the first mention of the Philippines, I am hoping that the company makes a formal announcement with respect to its new operation and its tie in with Singapore...A clear cut announcement defining the Philippines operation and the consolidated Asian strategy.
Despite JCS being fully established itself within Australia, it clearly sees that Asia is the future. I don't think any future acquisitions will be domestically. I have done a bit of digging around, trying to identify a few domestic acquisition targets and the Spectrum acquisition looks like very good value. Domestically the acquisition targets don't make much sense. Australian price tags for similar ERP businesses for smaller ERP's are not favorable when you consider the current valuation the market pays JCS recurring. Domestic targets are looking for multiples of 2.5 times and above thereby private domestic targets are far pricier than what JCS paid for Spectrum and will look to pay in Asia. Imagine if JCS was on 2.5 times recurring valuation right now, everyone would be a lot happier.
The Manilla back office tie up with additional prudent sub 2 times revenue multiple Asian acquisitions looks like where we are headed. I don't care how they grow the book, but as long as they are getting there the cheapest way possible.................JCS's biggest weakness is its biggest strength....being conservative and prudent, and that will serve us well under an acquisition strategy..
This Asian pivot is looking less like the JCS of old of consolidating on domestic strengths and but now the JCS of new with a clear grow strategy.
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