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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
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Acquisition of business and assets of Phoneware
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Commenced integration of Phoneware
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Increase in NPBT by 160% (2007–8)
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Interim unfranked dividend declared and paid of 0.25 cps
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Final unfranked dividend declared of 0.25 cps (paying 17/10/08)
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Softlog revenue milestones achieved (2007–8)
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Encouraging start to earnings for 2008–9 fiscal year
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Beta testing of new cost recovery products due for release early 2009
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Commenced redevelopment of feature rich call management system (CADS 4)
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The Numbers 2007–8
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Revenue $6.2m (increase of 89% over 2006-7)
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• Operating Profit $1.8m (before Corporate overhead of approx. $700k)
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• EBITDA $1.1m
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• EBIT $0.9m
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• NPBT $1.0m (increase of 160% over 2006-7)
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• NPAT $1.4m (includes tax benefit of $346k)
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The Expectation 2008-9
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Revenue $8.5m
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Operating Profit $2.8m (before corporate overhead of approx. $700k)
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• EBITDA $2.1m
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EBIT
$1.9m
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NPBT $2.0m
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• 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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The Organisation
- 2 Divisions
– FleetManager/Phoneware
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Softlog
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Approx. 52 staff
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Sales & Marketing – 9
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Client Services – 26
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Finance – 4
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Development – 13
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4 Australian Offices
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Growing R&D capability (Innovation theme)
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5
Stratatel Software Solutions
Client Value Proposition Enables automated:
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Expense management of high volume, low value transactions
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Cost disbursement, recovery and user management
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Improved policy compliance and governance
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Identification of incorrect charging by suppliers
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Financial administration and information dissemination
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Visibility of “emissions” footprint (under R&D)
All this with an ROI typically inside 3 months; if not immediate!
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Software and Service Product Offerings
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FleetManager[®]
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Asset and Expense Management (telephones, taxi, fuel etc.) – Managed Services
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CADS
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Call Accounting and Directory Services
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Managed Services
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Softlog.Enterprise – “Disbursement” Cost Recovery System
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Legal, Accounting, Engineering, Body Corporate (Professional market)
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Exciting new product offerings under development
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due for internal release – 10/08
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03/09
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Operational Challenges and Opportunities
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Recruiting and retaining quality staff
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Ongoing improvement in service delivery
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Acquisition integration
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Leveraging our Blue Chip client base for upsell/cross-sell opportunities
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Leveraging our channel partnerships to increase sales
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Telstra Business Systems
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Optus
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Canon
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NEC
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Development and marketing of “Game Changing” new products and services
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Increased internal focus on innovation and creativity
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Stratatel Today
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112,829,380 shares on issue (as at 19/09/08)
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Current share price trading 4.5x Forecast NPBT
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Debt free
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Paying dividends
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Expected growth
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new products
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upselling client base
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leveraging channel partners
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Why Investors Should Choose Stratatel
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Objective; to quadruple market cap over the next 3 years
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Proven technology business which provides significant revenue and earnings growth potential
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Underpinned by recurrent revenue that provides a sound financial base
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Current dividend yield of around 6.25%
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Expected double digit organic growth for 2008–9 and beyond
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Future acquisitions to provide scale in revenue and earnings
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Expected future market re-rating
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