What a great ride this has been for holders over the last 3-4 months. I remember topping up at 15c and sitting on huge losses, but as predicted, this has pushed forward on momentum of great management drive and sales efforts.
Next key milestone here is positive cashflow - will be interesting to see what management revises the 10m CARR to in the next quarterly, and whether they comment at all on cashflow and/or profit expectations.
Quick FY20 summary:
--> VLT reports CARR of 6.02m for FY19 and targets AUD 10m in CARR for FY20 (already at 110% of plan within 5 months)
2) 2/7: VLT wins expansion contract with StateCover Mutual (Australia) worth AUD 2.1m over 5 years
3) 29/8: VLT wins expansion contract with Restaurant Brands Ltd for AU stores, and US sites (US entry) - value undisclosed
4) 9/9: VLT wins 5yr (AUD 2.9m) contract with M1 (Singapore's 3rd largest telco)
--> 8/10: VLT partners with Vita Group to sell Solo in Australia
5) 22/10: VLT reports as part of 1Q update that CARR is sitting at AUD 6.9m
6) 22/10: VLT wins 5yr (AUD 6.8m) contract with ADT Security (NZ). CARR increases to AUD 8.3m
--> 31/10: VLT partners with Total Brain to bundle a combined offering and expand market potential
7) 20/11: VLT wins 5yr (AUD 12.4m) contract with SurePlan (NZ). CARR increases to AUD 11mContract numbers are getting bigger and bigger, and seem to have a steady 5 year period. Given the stickiness of VLT offerings and low turnover of customers, this is huge and shows a very clear trend which will hopefully continue. The thing I love about this is that the more large contracts VLT signs, the more management understands how to sell, and the easier these should be to replicate. If they can execute value for customers, then the potential here is still enormous.
Management deserve a huge pat on the back for what they have delivered so far in FY20. This has been an amazing ride, and has kicked the market back for its myopic reaction to an accounting error which in the scheme of things was a drop in the ocean.
GO VLT!
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