Ann: Half Yearly Report and Accounts, page-24

At $2.25 recently the company was trading on 24x this year consensus. As companies establish a long track record of earnings growth and execution the multiple expands and with a larger market cap the multiple expands even further as the larger fundies are happy to pay even higher multiples for growth, since it's hard to come by in the $1B+ space. By 2020 if my thesis is correct then it would be the 5th year of strong growth and I don't see 25x excessive considering the 90%+ recurring revenue and global footprint. Considering by then the company will have in excess of $100m cash and are buying companies on 10x max, then depending on timing, an equity raise will not need to be large ($50m maybe) and a corresponding script earn out period will probably be included. Obviously, this is all based on management executing. So far they are! You can't fault 35% ebitda growth...... in terms of margins, with further European mall deals the net revenue margin may actually increase from 107 bps to potentially 120 bps. Any deterioration in that margin means that GDV growth is coming from reloadable and B2B deals which in that case means the business is on track for strong growth. GP margins should remain at 75% and increase slightly over time as the company becomes licensed to self issue cards. Maybe 76-77% GP next 2-3 years.