Hi Writer,I have some experience in this area, but I'm not sure...

Hi Writer,

I have some experience in this area, but I'm not sure how Admerex has structured their own deals of late.

Usually (ie in most cases in Oz) a debt recovery company with a recovery call centre actually buys the bad debt from others at an agreed rate (say 8 - 16% of the value, depending on the "quality") and then tries to recover a % better than what they paid. And if they do a good job, they can make huge amounts.

As for Admerex's model, I am unsure as we have yet to see large cash outflows (and additions to the balance sheet) for buying bad debt ledgers, especially given the newness of the business, so perhaps their model is both an upfront fee AND a commission at this stage.

If anyone is planning on going to the AGM this would be a great question to ask of the CEO and board, as would knowing the average $ value of a software sale or support contract as they never mention these details in any of their press releases.