Wow a much better and well-presented snapshot of why there are hidden talents with SEQ.
Certainly, think he is better at interviews rather than presentations. Even though my research had highlighted most of that I think there are a few takeouts:
1. Revenue and deferred revenue - The impact of reach and the impact of growth will lock in future profits as the revenue is accrued over the term yet the cashflow accumulates upfront or partially upfront. So maybe the cash flow statement is almost abetter reflection of business performance. Imagine if Harvey Norman was required to defer its income over the life of the TV - lol. Big issue that at the moment is a huge positive.
2. The impact of Interprac is huge and yet we will only see 7 months this year. Hopefully, they will show an annualised impact as well with the full year presentation.
3. Critical mass - that's a real thing within these businesses. They probably need a few bolt-ons to get to the level we need.
4. Paying a dividend for a financial services company is a must and 20% to 50% is more than enough to get rated.
5. Scott Beeton is far better when he just exudes the passion as he talks rather than trying to hit keynotes on a presentation.
6. I respect the guys from Interprac and Garry Crole who was part of the Diversa turnaround so as that got swallowed up into OVH I hope they can hang onto this and keep us all in for the ride. I have topped up recently and am very happy to have done so.
7. I think the message for a grouping of financial services companies is a hard ask as they may serve the same market but have differentiation but over time the ability of the players to assist each other in servicing the market will get through. Its very like selling a professional service it really depends on your people as to what you can do. You can hire a person who can instantly add to your reach and offering.
Now I am looking forward to the full year as that will give us some guidance as to how well this is doing.
SEQ Price at posting:
33.0¢ Sentiment: None Disclosure: Held
