* QTG continues to partner with more and more quality international brands. This will increase sales by enabling QTG to offer a greater depth of products at different price points.
* These major international brands (ie Bosch) obviously are getting more confidence in the QTG distribution capabilities (five offices Australia-wide and more than 50 employees, a technical service centre and a national distribution centre)
*in addition to these global brands QTG has re-launched its own in house brand to the Australian market of the newly developed QVS Alumia cameras, which will also provide QTG an improved product mix to grow revenues and profits.
*QTG has recruited staff and put together products that will enable them to compete in the higher volume, medium to large scale project market, as well as the small to medium client base that QTG is already servicing.
*the next step is for QTG to focus ongoing service and maintenance of the systems to generate annual recurring revenues (which is the exact same strategy is HIL)
*as noted in the market update:"Our business is in a much stronger market position to take advantage of growth prospects in the market and management are excited by the market opportunities going forward."
So.......all this points to the business having genuine momentum behind it, with Management fully in charge of its destiny and with a number of avenues to drive sales and margins. Procurement / inventory management has been improved, and in Rob Rosa they have a respected, passionate and enthusiastic industry veteran driving the progress. The fact that sales and profit are growing, cash flows are increasingly positive suggests that the momentum is accelerating rather quickly.
....turnarounds always take a long time, and the same with market re-ratings, but everything is pointing to QTG developing a business that deserves a market cap far higher than its current $3.5 million.
QTG Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
