Does Christopher Lau know how to run a business????
How do you incur a wages expense of 93% of your total turnover? That's right 93%!!
How do you incur software "subscription fees" of over 23% of your total turnover?
How do you rack up IT consulting fees and outsourcing fees of nearly 28% of your total turnover?
Obviously the revenue model is ill conceived, and the significant expense of running this "online" ecommerce business is making someone financially happy....(not the shareholders I'm talking about)...
From memory, John Lau did a deal with ECG as part of the IPO whereby his sophisticated and highly developed Software IP help support the incredible valuation of the business.... Hmmm... and a swag of ECG shares. The cost to keep the software relevant is a very expensive "subscription" fee.... Oh my god!!!
Rupert Myer should be ashamed.
No wonder Woolworths pulled the pin on the contract last year....
Shareholders.... Beware!
Market Cap on listing....$224mil..... Market cap today $50mil...... Talk about wealth destruction for investors!
ECG Price at posting:
9.9¢ Sentiment: Sell Disclosure: Not Held
