Well, with the preliminary Admerex annual report finally now out, the cat is finally out of the bag.
Whilst sales revenues grew per my conservative revenue estimate (up 39% to $3.2M), it would seem that the company sold some Temenos stock earlier in the year at lower prices and therefore only realised a $6m revaluation gain to their P&L and balance sheet (as opposed to an $8m gain forcast by me).
Also, I note that operating costs grew by $1 - 3M more than my conservative and agressive forecasts. It seems that labour costs were more fixed and "stickier" than I first thought.
So what does this all mean? Well, instead of seeing a turnaround to profitability this financial year, the net difference of all of the above amounted to a $2M loss instead of a $2.9M gain. C'est la Vie.
Still, once this worldwide market downturn/correction rectifies itself, the Temenos shares should continue to increase in value alongside Admerex's continuing sales growth, and this will likely underpin the company's share price at around 9 cents (some 1.5 - 2 cents higher than NTA to reflect a premium for future growth).
Looks like time to hold for a while longer.
ADL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
