Yep. It looks like the hard work of last year is starting to show through increased rate of of contract rollouts now. But I'm not sure that is going to be enough to attract new investment into this company.
We know that they have a large pipeline, and they were quoting a 90%? conversion rate before, though that figure seems to have gone missing in presentations of late. Only problem is that these conversions are taking longer than I think they might have anticipated initially. Fortunately they recognised this, so they pivoted to prioritise revenue extraction from their existing pipeline with their new product offerings, while they continue to work on growing and converting the pipeline.
So as I see it, the real key in the short term will be whether they can show material growth in recurring revenues from take up of their new product offerings. If so, then this company becomes a lot more attractive as an investment this year. If not, then it is a much longer term growth outlook and more uncertainty with capital raising and investor dilution down the road.
SKF Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
