OK, at first I was a little annoyed there was no guidance for full year, but we may still get that in another announcement.
On a few re-reads of this report, I am liking it more and more.
The cash flow, is not a concern, and I am sure is a timing issue, you can see that the receivables are up nicely to counteract the cash.
The positives:
I was simply blown away by the two core technology subsidiaries.
ERST (half on half comparisons): Revenue: $1.5m to $1.9m Profit: $500k to $850k Margins: 33% to 44% This business just goes from strength to strength.
Urgent: Revenue: $1.5m to $2.4m Profit: -50k to $550k Looks like they have turned this one around. And is reflected in the bullish commentary: - "Re-negotiation of a significant annual support contract." - "Funding redevelopment of eMaintenance application" - "Winning a significant contract in the US"
Negatives: Statseeker: Well this is where it gets murky. NPAT result of just $50k, but this half was littered with one offs as specified in commentary. It seems that statseeker clocked in around $837k of revenue for the four months it was operational. They say statseeker was "slightly" below budget, however expecting sales to pick up this half. So Statseeker still remains to be seen if this was a good purchase or not.
The other thing that is a little confusing is the actual results. From what I can see they have hit the $1.1m from continuing results, plus the $400k or so in revaluations. But there is an entry at the end of the results for $720k in exchange differences. Which pushes the result up to $2.2m (anyone care to comment).
Regardless, if ERST and Urgent continue ripping, and Statseeker comes good, we could be staring down the barrel of a monster full year result. I look forward to seeing the guidance...
I wont be selling and may even add if this some spastic holders sell it.
TCN Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
