JCURVE SOLUTIONS LTD — AGM Information 2015

Nov 16, 2015

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17
November
2015

Manager
of
Company
Announcements ASX
Limited Level
6,
20
Bridge
Street SYDNEY
NSW
2000

By
E-­‐Lodgment

**AGM

-­‐
Company
Update**

JCurve
Solutions
Limited
(ASX:JCS),
provider
of
cloud
based
enterprise
resource
planning
(ERP) solutions
for
emerging
businesses,
today
communicated
a
refreshed
business
strategy
focused on
three
opportunities.
Today’s
release
of
a
refreshed
business
strategy
coincided
with
the strategic
update
provided
to
shareholders
at
JCurve
Solutions’
2015
AGM,
held
in
Sydney
this morning.

The
three
strategic
opportunities
the
company
is
focused
on
are:

1. Maximising
   value
   from
   the
   Telecommunications
   and
   Expense
   Management
   (TEMS) business

2. Investing
   to
   grow
   the
   JCurve
   business,
   and

3. Leveraging
   core
   strengths
   and
   capabilities
   to
   diversify
   the
   company’s
   product
   range and
   reinvest
   for
   growth.

Chairman,
Bruce
Hatchman,
told
shareholders
the
company
has
strong
fundamentals
and
that a
changing
business
mix
positioned
the
company
well
for
sustainable
long
term
growth.

“There
is
a
positive
and
strong
outlook
for
JCurve
customer
and
revenue
growth.
In
the
shorter term
we
are
managing
a
change
in
business
mix
driven
by
continued
strong
growth
in
JCurve but
strengthening
and
structural
headwinds
are
impacting
the
TEMS
business,”
said
Mr Hatchman.

The
strong
fundamentals
supporting
the
company
included
a
debt
free
financial
position
and $2
million
cash
at
bank
at
the
start
of
this
financial
year.
A
large
and
growing
base
of
monthly recurring
revenue
generated
by
the
JCurve
business
also
contributed
to
the
company’s fundamentals.

The
refreshed
business
strategy
followed
completion
of
a
strategic
review
assessing
the structure,
profitability
and
industry
dynamics
impacting
JCurve’s
different
businesses.

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**2016

Outlook**

As
a
result
of
the
refreshed
strategic
focus
and
changing
business
mix
the
company
provided
an updated
outlook
for
the
2016
financial
year.

Measure	FY15 base	FY16 original	FY16 updated
		outlook	outlook
Revenue	$11.3m	Range: $11.0m to	Range: $10m to
		$11.2m	$10.5m
EBITDA	($0.9m) loss	Range: ($1.0m to	Range: ($0.5m to
		$0.8m)loss	$0.2m)loss
NPAT	($0.3m) loss	Range: ($0.4m to	Range: ($0.2m) loss to
		$0.2m)loss	$0.1mprofit

excluding
Impairments

Revenue
trends
impacting
the
2016
outlook
comprised
strong
double
digit
growth
for
JCurve, continued
weakness
from
structural
headwinds
in
the
TEMS
business
and
discontinued revenue
from
the
South
African
telco
business
which
contributed
$0.7
million
in
2015.
The decline
in
revenue
outlook
from
August
reflects
the
strong
headwinds
impacting
the
TEMS business
whilst
the
improvement
in
EBITDA
represents
corrective
cost
measures
as
a
result
of the
Strategic
Review.

**Resignation

of
Graham
Baillie**

It
was
also
announced
that
Graham
Baillie
would
not
be
standing
for
re-­‐election
as
a
Director. Graham
was
the
founder
of
JCurve
and
has
made
a
significant
contribution
to
the
business
and its
growth.
Graham’s
decision
is
based
on
personal
reasons
and
he
will
continue
to
be
a
major shareholder
of
JCurve
Solutions.

For
and
on
behalf
of
the
Board

**Bruce

Hatchman**

Non-­‐Executive
Chairman

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