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JCURVE SOLUTIONS LTD Interim / Quarterly Report 2008

Sep 22, 2008

65158_rns_2008-09-22_aa78a235-a18c-407b-ad2b-141e8241559c.pdf

Interim / Quarterly Report

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Investor Update

Mike Fairclough – CEO

September 2008

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Recent Highlights

  • Acquisition of business and assets of Phoneware

  • Commenced integration of Phoneware

  • Increase in NPBT by 160% (2007–8)

  • Interim unfranked dividend declared and paid of 0.25 cps

  • Final unfranked dividend declared of 0.25 cps (paying 17/10/08)

  • Softlog revenue milestones achieved (2007–8)

  • Encouraging start to earnings for 2008–9 fiscal year

  • Beta testing of new cost recovery products due for release early 2009

  • Commenced redevelopment of feature rich call management system (CADS 4)

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The Numbers 2007–8

  • Revenue $6.2m (increase of 89% over 2006-7)

  • • Operating Profit $1.8m (before Corporate overhead of approx. $700k)

  • • EBITDA $1.1m

  • • EBIT $0.9m

  • • NPBT $1.0m (increase of 160% over 2006-7)

  • • NPAT $1.4m (includes tax benefit of $346k)

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The Expectation 2008-9

  • Revenue $8.5m

  • Operating Profit $2.8m (before corporate overhead of approx. $700k)

  • • EBITDA $2.1m

  • EBIT

$1.9m

  • NPBT $2.0m

  • • NPAT $2.7m (after inclusion of tax benefit)

Future Dividends; company to continue to pay dividends Subject to meeting acquisition commitments and Board approval

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4

The Organisation

  • 2 Divisions

– FleetManager/Phoneware

  • Softlog

  • Approx. 52 staff

  • Sales & Marketing – 9

  • Client Services – 26

  • Finance – 4

  • Development – 13

  • 4 Australian Offices

  • Growing R&D capability (Innovation theme)

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5

Stratatel Software Solutions

Client Value Proposition Enables automated:

  • Expense management of high volume, low value transactions

  • Cost disbursement, recovery and user management

  • Improved policy compliance and governance

  • Identification of incorrect charging by suppliers

  • Financial administration and information dissemination

  • Visibility of “emissions” footprint (under R&D)

All this with an ROI typically inside 3 months; if not immediate!

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6

Software and Service Product Offerings

  • FleetManager[®]

  • Asset and Expense Management (telephones, taxi, fuel etc.) – Managed Services

  • CADS

  • Call Accounting and Directory Services

  • Managed Services

  • Softlog.Enterprise – “Disbursement” Cost Recovery System

  • Legal, Accounting, Engineering, Body Corporate (Professional market)

  • Exciting new product offerings under development

  • due for internal release – 10/08

  • 03/09

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7

Operational Challenges and Opportunities

  • Recruiting and retaining quality staff

  • Ongoing improvement in service delivery

  • Acquisition integration

  • Leveraging our Blue Chip client base for upsell/cross-sell opportunities

  • Leveraging our channel partnerships to increase sales

  • Telstra Business Systems

  • Optus

  • Canon

  • NEC

  • Development and marketing of “Game Changing” new products and services

  • Increased internal focus on innovation and creativity

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Stratatel Today

  • 112,829,380 shares on issue (as at 19/09/08)

  • Current share price trading 4.5x Forecast NPBT

  • Debt free

  • Paying dividends

  • Expected growth

  • new products

  • upselling client base

  • leveraging channel partners

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Why Investors Should Choose Stratatel

  • Objective; to quadruple market cap over the next 3 years

  • Proven technology business which provides significant revenue and earnings growth potential

  • Underpinned by recurrent revenue that provides a sound financial base

  • Current dividend yield of around 6.25%

  • Expected double digit organic growth for 2008–9 and beyond

  • Future acquisitions to provide scale in revenue and earnings

  • Expected future market re-rating

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