I take that back. I was re-reading over the Annual Report today and noticed that on page 7 they do breakdown revenue and you can see that recurring analytics revenue from shopping centres has already become the vast majority of revenues, increasing from roughly a third of revenue in FY14 to over three quarters of revenue in FY15. The raw numbers is $200k analytics revenue in FY14, $550k in analytics revenue FY15.
SKF is an interesting proposition right now. I think there is the potential for an amazing product and business over time, but the market likely has concerns about funding that potential. SKF needs to maintain an aggressive growth plan and really build on first mover advantage where possible and quite simply integrate themselves into as many customers as possible. The problem is that will either come at the sake of higher revenues now (through the use of free trials or discounted services) or SKF continually coming cap in hand back to shareholders for more funds.
I believe that is what has held the SP back over the past month after it threatened to break out after the last quarterly was released. A cap raising is inevitable at any point now, and even the extremely positive announcements over the last few weeks are ignored or taken with some heavy grains of salt because they could be seen as trying to inflate the price. I wonder if the SP may have fallen further without management buying at these levels over the last month? Are they buying because the SP is a bargain and they anticipate future growth, or to support a declining SP for the inevitable cap raise?
Anyway, I've said before I would be disappointed if we have a cap raise at these levels without some sort of news beforehand. I would hope for an announcement of a European or US distributor/partner. At the very worst, we may see a cap raising with an acquisition at the same time, I wouldn't be surprised if SKF management hasn't thought about making an offer for Sprooki.
At the very least, give us an update on the trials currently being undertaken! We should have heard by now about Barangaroo and the others, and no news is bad news as far as I am concerned.
