Another poor set of results for mine. Still bleeding revenue and margin through a legacy product set run-off. Costs not being reset quicker enough.
Copywrite win will clearly help to better align with variable cost base.
Value trap?
However, the focus should be on the future.
Can the new Mgt Team pull off 10-20% 3-year EBITDA CAGR?
They need to invest $8-$9.5m this year to get ready. ~$5m in 2H19
The business has limited FCF, but ~$9m in available undrawn debt. However, ISD seems to fixated on debt reduction as EBITDA has been stinking rapidly. Thought covenant headroom seems okay if EBITDA stablises
ISD Price at posting:
27.5¢ Sentiment: Hold Disclosure: Held
