Ann: SPP Oversubscribed - Scale Back Announced, page-31

Hi all,

New holder here.

Just found this gem.

From what I can see, please correct me if I’m wrong:

>clean platform with consistently improving ARPUs & RRs (circa ~500-600 RRs per day from my quick analysis over the last few months) and just hit 325k RRs (due for a market announcement tomorrow/next week I reckon).

>end user experience is great & simple (having used the website myself)

>revenue/cash receipts trajectory looks great, with profitability surely coming in FY19.

>comparables in the industry after they’ve matured boast profit margins of anywhere from 30-40% (REA, CAR etc.)

>latest 4C (as of March Qtr) is about to hit positive operating cash flow

>recent cap raising is probably the last one for years to come (unless they have expansion plans which require significant investment) given my previous point

>future business model looks like it’ll be a one stop shop for everything rent-related (recent acquisition from MYOB looks like an execution of this strategy)

>company holds other great domains from what I have read (lease.com.au, rent.asia and some others which I’ve forgot) which means there is definitely a larger market that is yet to be addressed. I’m assuming they’re optimising the current platform before they divert their attention

All this and the company is only valued at $20m? Is there anything I’ve overlooked? Seems like it is in a prime position to start doing really well or be bought out by the likes of REA or DHG.

Would love to hear your thoughts.


CappMan