SP1 0.00% $1.07 southern cross payments ltd

Hey mate, not quite sure what you mean by where it sits right...

  1. 4,274 Posts.
    lightbulb Created with Sketch. 691
    Hey mate, not quite sure what you mean by where it sits right now, as its obviously in suspension. Putting that aside, and assuming that nothing untoward is found regarding ISX's recently-reported revenues and profits etc, I see this company as being extremely strong with a massive growth runway already laid out. I say this because:

    • the last 4C showed that they earned underlying net cashflows of $2 million for the previous 3 months
    • moreover, the last 4c provided critical insights to the likely performance during the current (Dec) quarter
    • specifically, the information that they provided - coupled with other information provided by the company - suggests that they will earn net cashflows of approx $8m in the current quarter (provided the current suspension doesn't distract them too much).
    • while $8m profit for one quarter is very impressive, they are only scratching the surface.
    • this is because only 1/3 of signed customers are currently using the service, with the remaining 2/3 still waiting to be onboarded
    • at the same time, the number of signed customers is increasing rapidly too.
    • looking forward, and assuming that the current platform doesn't have any major capacity constraints, future expansion should occur at very favourable margins.
    • bringing this altogether, and noting the strong tailwinds afforded by increasing regulatory requirements for AML/KYC services, I see a massively bright future for this company.

    Hope that helps.
    Last edited by FraserJC: 01/11/19
 
watchlist Created with Sketch. Add SP1 (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.