TSK - TASK Group Holdings

[sb9]

Looking like a pump and dump.See where we are at with close today

Was only matter of time before one of those option holders at cheap prices got tempted....could well be Mr Bradley dumping them.

[Justin]

Party over, back to reality, how good the results will be.

[nevchev]

Was only matter of time before one of those option holders at cheap prices got tempted....could well be Mr Bradley dumping them.

Well done by whoever it was.Every man and his dog was lining up for some

[Brain]

Balance has been warning everybody of that behaviour so it comes as no surprise to me. The trick is to figure out if this company is going to be successful or not. Balance reckons no chance . I am in the could be successful camp but not totally convinced.

[mfd]

Balance has been warning everybody of that behaviour so it comes as no surprise to me. The trick is to figure out if this company is going to be successful or not. Balance reckons no chance . I am in the could be successful camp but not totally convinced.

It's just noise for long term holders, what we see in the results is what matters.

[Checkmate]

I am expecting in the range of $2-3million net profit after tax. Good luck!

[Leftfield]

Speeding ticket and response today. (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PLX/352998/322398.pdf)

While overjoyed at the recent SP climb, I would rather see it based on performance after the results are released next Tuesday.

[Justin]

Speeding ticket and response today. (http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PLX/352998/322398.pdf)

While overjoyed at the recent SP climb, I would rather see it based on performance after the results are released next Tuesday.

loaded or offload to see the results？

[youngatheart]

Odd how PLX gets a speeding ticket yet SKT does not...

[Leftfield]

loaded or offload to see the results？

Not fussed either way. Always risky trading on rumours.

I'm not a trader and like the long term potential and confirmation (or otherwise) is what I'll be looking for in next weeks results.

Disc - was holding heaps freehold and topped up more during recent lows. My av holding SP now in low 30c.

[youngatheart]

Odd how PLX gets a speeding ticket yet SKT does not...

Oh. SKT just got one...lol

[Timesurfer]

Oh. SKT just got one...lol

Won't be the last one issued I'd guess. Anything with a green arrow seems to be hit with a frenzy at the moment.

[Justin]

pretty quite today

[Checkmate]

Very Excited to see the results on Tuesday. I have completed a DCF analysis for Plexure and was wondering if anyone would like to have access to it?
Its an Excel file so not sure if i can upload it here...
It has Pessimistic, Neutral and Optimistic scenarios just based on different revenue growth assumptions for the next 5 years.
Anyway, based on Plexure's guidance which they re-announced on March 18th i have estimated about $3 million Net profit on $24.5 million Revenue, (Give or take).

If they hit that estimate the company would be making around $2.4 cents per share for the year. We would likely see another spike in the Share price.

My Pessimistic - Optimistic range for share price and market value is $1.05 - $2.54 and $146,000,000 - $354,000,000 Respectively.

Based on some comparisons from competitors such as Pushpay, Salesforce, Hubspot etc i have concluded a rough estimate based on Price/sales, Price EBITDA, Price/Book ratios of $215,000,000 NZ

If anyone would like to see the Excel file i would gladly hand it over :)
Cheers,
Checkmate

[King1212]

Been watching for couple weeks now...my gut feeling ask me to jump in....but not sure yes or no

With online n contactless society now...I could see PLX at the good position

[sb9]

Very Excited to see the results on Tuesday. I have completed a DCF analysis for Plexure and was wondering if anyone would like to have access to it?
Its an Excel file so not sure if i can upload it here...
It has Pessimistic, Neutral and Optimistic scenarios just based on different revenue growth assumptions for the next 5 years.
Anyway, based on Plexure's guidance which they re-announced on March 18th i have estimated about $3 million Net profit on $24.5 million Revenue, (Give or take).

If they hit that estimate the company would be making around $2.4 cents per share for the year. We would likely see another spike in the Share price.

My Pessimistic - Optimistic range for share price and market value is $1.05 - $2.54 and $146,000,000 - $354,000,000 Respectively.

Based on some comparisons from competitors such as Pushpay, Salesforce, Hubspot etc i have concluded a rough estimate based on Price/sales, Price EBITDA, Price/Book ratios of $215,000,000 NZ

If anyone would like to see the Excel file i would gladly hand it over :)
Cheers,
Checkmate

Sure would love to have a look at that. Alternatively you can upload your excel file here, just choose 'insert image' and 'choose file' from your computer. Thanks for your effort.

[MauroNZ]

Very Excited to see the results on Tuesday. I have completed a DCF analysis for Plexure and was wondering if anyone would like to have access to it?
Its an Excel file so not sure if i can upload it here...
It has Pessimistic, Neutral and Optimistic scenarios just based on different revenue growth assumptions for the next 5 years.
Anyway, based on Plexure's guidance which they re-announced on March 18th i have estimated about $3 million Net profit on $24.5 million Revenue, (Give or take).

If they hit that estimate the company would be making around $2.4 cents per share for the year. We would likely see another spike in the Share price.

My Pessimistic - Optimistic range for share price and market value is $1.05 - $2.54 and $146,000,000 - $354,000,000 Respectively.

Based on some comparisons from competitors such as Pushpay, Salesforce, Hubspot etc i have concluded a rough estimate based on Price/sales, Price EBITDA, Price/Book ratios of $215,000,000 NZ

If anyone would like to see the Excel file i would gladly hand it over :)
Cheers,
Checkmate

Checkmate thanks for your interest in sharing the information, would it be okay with you if I send you my email address by PM?.

[Checkmate]

Sure would love to have a look at that. Alternatively you can upload your excel file here, just choose 'insert image' and 'choose file' from your computer. Thanks for your effort.
Sorry I've tried to use the 'Insert Image' button but i don't get an option to add a file from the computer. Is there any other way?
I will reply to the people who PM me for an emailing of the spreadsheet!

[Checkmate]

I figured out a way to post it, by way of using Wetransfer.com (it should be safe i've used it many times) here is a link:

https://we.tl/t-etaFvlKXmU

Hopefully that works, feel free to give me your thoughts and advice as to how i could possibly make my model more accurate.
There is probably some wild assumptions, like no debt... as i couldnt really predict when if ever they will incur any debt.

Cheers guys!

[Leftfield]

Checkmate, thanks for sharing your valuations (and enthusiasm.) Your FY20 revenue fig of $24.9 mill is just north of PLX's guide range of $21 to $23 mill, so not unrealistic tho' much depends on Covid.

On a sobering note, I see XRO was marked down this week after what I thought was a good result and a move into profit with a growing cash reserve. I suspect part of the markets fear, was that XRO did not make any projections for FY21.

So as well as your expected revenue, it would be great to see future projections by PLX (which in this covid world may be conservative.)

I sincerely hope you are right with your valuations. Like you I can't wait for the results release next week.

[Cobber]

Checkmate, thanks for sharing your valuations (and enthusiasm.) Your FY20 revenue fig of $24.9 mill is just north of PLX's guide range of $21 to $23 mill, so not unrealistic tho' much depends on Covid.

On a sobering note, I see XRO was marked down this week after what I thought was a good result and a move into profit with a growing cash reserve. I suspect part of the markets fear, was that XRO did not make any projections for FY21.

So as well as your expected revenue, it would be great to see future projections by PLX (which in this covid world may be conservative.)

I sincerely hope you are right with your valuations. Like you I can't wait for the results release next week.

Bro, you missed this market guidance from PLX back in Feb.

https://www.nzx.com/announcements/348109

And reconfirmed in mid March.

https://www.nzx.com/announcements/350240

[Leftfield]

Thanks Cobber. Makes me feel much better.

[Checkmate]

Thanks Cobber. Makes me feel much better.

As Cobber said the re-affirmed revenue guidance stated as follows:
Plexure re-affirms its revenue guidance within the range of $24.5M to $25.0M so my revenue was just estimated with those numbers or there abouts.

[Gerald]

As Cobber said the re-affirmed revenue guidance stated as follows:
Plexure re-affirms its revenue guidance within the range of $24.5M to $25.0M so my revenue was just estimated with those numbers or there abouts.

Thanks for sharing, you clearly put some effort in. Just two things:

- You have second half expenses below first half, I would expect them to be atleast 1.5m-2.5m greater.
-Also your income tax of over 1m is unlikely considering they only paid only 65k on 1.2m in the first half (keep in mind all those accumulated losses).

With this in mind, and a 1.2m profit from the first half, I think a FY profit in the range of $2m-$3m would be reasonable.

Given the earlier anouncement + announcement about an announcement, i'll say $2.85m, and hope for the best.

Would be interesting to hear some other guesses before tuesday :)

FINAL EDIT: On reflection, my enthusiasm got the best of me with some of my calculations. Profit will be extremely difficult to predict and probably closer to 1.5m.

[Checkmate]

Thank you very much for the feedback Gerald, I felt it was tricky to try and estimate a Tax amount as there is so many factors to affect it, so i just used a really high kind of average rate to be conservative in the estimates there. As for the expenses, ill have to revise that! Thanks

Yes i agree it will be awesome to have some other estimates or guesses of the net profit figure, we would be looking very good at anywhere in between $2.5 to $3m i'm going to be optimistic and go with the higher of that range:
$3million (to account for the high tax i estimated :) )

[King1212]

Thanks guys!!...thank heaps checkmate!

Based on all above....what would be the fair value for PLX. As u can see pushpay....$7....

[winner69]

Are Plexure monetising the stuff that goes the apps yet?

Or still just a developer / support / consulting outfit.

[Gerald]

Are Plexure monetising the stuff that goes the apps yet?

Or still just a developer / support / consulting outfit.

I don't think so, would be a good question to ask Craig. However, they are moving away from one-off consulting fees and such to something closer to a (SAAS?) model, which is good. See half year:

Recurring revenue (representing licence and support fees) increased by $2.9m or 59% to $7.8m, while non-recurring revenue increased by $0.7m, or 21% to $4.0m. Non-recurring revenue represents funded development and one-off projects for clients.

[Justin]

they are increasing heaps of their headcounts and investing heaps of hardware capacity to serve more cutomers，thats why in previous announcement，they said the profit hardly counted。thats why i think their profit may not too much as mr market predicts.

[mikeybycrikey]

they are increasing heaps of their headcounts and investing heaps of hardware capacity to serve more cutomers，thats why in previous announcement，they said the profit hardly counted。thats why i think their profit may not too much as mr market predicts.

Yeah, I think a few months ago I was expecting a loss of about $2 million. They have really ramped up spending and have all that McDonalds money to spend.

I'm still surprised to see people expecting a profit this year but I haven't had a good look at their finances recently. I've just downloaded the analysis posted here (Thanks Checkmate) so will interested to look at that.

[Justin]

Yeah, I think a few months ago I was expecting a loss of about $2 million. They have really ramped up spending and have all that McDonalds money to spend.

I'm still surprised to see people expecting a profit this year but I haven't had a good look at their finances recently. I've just downloaded the analysis posted here (Thanks Checkmate) so will interested to look at that.

becuase their latest announcement reaffirm they will turn profit in FY20

[Gerald]

Yeah, I think a few months ago I was expecting a loss of about $2 million. They have really ramped up spending and have all that McDonalds money to spend.

I'm still surprised to see people expecting a profit this year but I haven't had a good look at their finances recently. I've just downloaded the analysis posted here (Thanks Checkmate) so will interested to look at that.

That would suggest a second half loss of 3m, which is unlikely. However, I agree spending is probably going crazy, hence profitability at this stage is little more then a bonus to compliment the revenue growth.

[Justin]

That would suggest a second half loss of 3m, which is unlikely. However, I agree spending is probably going crazy, hence profitability at this stage is little more then a bonus to compliment the revenue growth.

if this little profit means 1 or 2 milion，whats the PE ratio Mr market will accept?

[winner69]

if this little profit means 1 or 2 milion，whats the PE ratio Mr market will accept?

Don’t think market will worry about PE ratios

They’ll look at revenue multiples or maybe just assess how great Plexure is going to be.

[Brain]

I believe shares like this defy Financial analysis apart from the revenue multiples. All a matter of faith/judgement. Is it a good product? Does management have the smarts to pull it off? How much risk are you comfortable with?

[winner69]

Thank you very much for the feedback Gerald, I felt it was tricky to try and estimate a Tax amount as there is so many factors to affect it, so i just used a really high kind of average rate to be conservative in the estimates there. As for the expenses, ill have to revise that! Thanks

Yes i agree it will be awesome to have some other estimates or guesses of the net profit figure, we would be looking very good at anywhere in between $2.5 to $3m i'm going to be optimistic and go with the higher of that range:
$3million (to account for the high tax i estimated :)[B] )

That $3m sounds good

Just as good as Xero

Their latest profit was just $3m

XRO market cap >$10 billion

[Checkmate]

Yeah, I think a few months ago I was expecting a loss of about $2 million. They have really ramped up spending and have all that McDonalds money to spend.

I'm still surprised to see people expecting a profit this year but I haven't had a good look at their finances recently. I've just downloaded the analysis posted here (Thanks Checkmate) so will interested to look at that.
They stated in their guidance they will have ended the year in a profit.. that’s why everyone is expecting a profit, see their Covid 19 update in March 18th. They also said they will have cash of $14million and revenue was $24.5-25million.
Also you’re welcome for the spreadsheet, I hope everyone found it useful.

[winner69]

Hey checkmate ....your 3 scenarios - have thought of weighted expected return (applying probability Of success to each scenario)

[Oliver Mander]

I did a full DCF earlier this year (admittedly pre-Covid). My projection came in at rev 24.2 for 2020, with underlying cashflow of around 3.5. Had IT costs growing to 3.7. No number for profit specifically, but i guess you could say that my underlying cashflow is moreor less equivalent to EBITDA.

Will be curious to benchmark against the reality.

Disc. Hold.

[Checkmate]

Hey checkmate ....your 3 scenarios - have thought of weighted expected return (applying probability Of success to each scenario)
Oh that is a great idea, the model is quite basic I guess you could say, there could be a lot more assumptions and probabilities added to it!

But no there was no real thought of the probability of each scenario!

Cheers

[Checkmate]

Thanks guys!!...thank heaps checkmate!
Based on all above....what would be the fair value for PLX. As u can see pushpay....$7.... No problem mate! Push pay has a much higher market valuation, and rightly so, they bring in a lot more revenue!
But from my model I think anywhere within $1-$3.5 roughly, but as you probably know, it is very hard to estimate a true fair value using any method! I reckon about $1.5-$2 would be pretty fair, depending how close they are to my estimated net profit I guess 🤠

[Checkmate]

I did a full DCF earlier this year (admittedly pre-Covid). My projection came in at rev 24.2 for 2020, with underlying cashflow of around 3.5. Had IT costs growing to 3.7. No number for profit specifically, but i guess you could say that my underlying cashflow is moreor less equivalent to EBITDA.

Will be curious to benchmark against the reality.

Disc. Hold.
Sounds great mate, I am also very curious to see the actual results, bring on Tuesday!

[King1212]

Ehmm....sound good....wonder the SP will spoke up on Monday. Was hesitant to buy last night....

[Baa_Baa]

No problem mate! Push pay has a much higher market valuation, and rightly so, they bring in a lot more revenue!
But from my model I think anywhere within $1-$3.5 roughly, but as you probably know, it is very hard to estimate a true fair value using any method! I reckon about $1.5-$2 would be pretty fair, depending how close they are to my estimated net profit I guess 🤠

Thanks for the model, much appreciated. I’ve tweaked a few things and reckon you’re right about $1.5 to $2.0 on current knowns. That could be a double bagger from here just on a good result Tuesday. Big unknown is the impact of FTE growth on expenses, but I still think it would be weird to announce an announcement unless they were proud of the results. Gltah

[Brain]

This thread has become the PLX fan club. I think some balance is required but I think he has probably given up. No point in a bloke banging his head against a brick wall.

[King1212]

Yeah right....just like balance on his SKO thread....here.... people discuss based on the facts of PLX revenue

[Justin]

nobody care about their crazy spending，and their main market in europe heavliy hit by covid19 and there may be a second wave.

[blobbles]

Fair value for PLX IMO is around 3-5x revenue at current growth rates, which is about where it's been trading. They shouldn't be looking for profit, we shouldn't care if they have one. They should be all about growth, growth, growth, which it looks like they are focusing on. As such, don't look for profit, look to how they can leverage their income and cash in bank to grow revenues.

IMO COVID-19 is good for them - customers like McDs will turn inwards and look to how they can leverage their customer base once they come out of lock downs. This can only be good for PLX.

Customer numbers at 170m and climbing now, 1 year ago it was 100m. What they need is more people using their apps, more diversified customer base and greater reach with their current customers. Would be good to see a breakdown of who is using their apps, but they aren't likely to provide due to commercial sensitivity.

[Baa_Baa]

nobody care about their crazy spending，and their main market in europe heavliy hit by covid19 and there may be a second wave.

Blissful ignorance, obviously know squat.

[King1212]

Well... McDonald ...white Castle....super Indo...all open in USA n Indo....all though lockdown...fast food restaurants are open...n crazy mad business...super Indo is essential ...remain open ...

[Justin]

I saw somewhere they dealing most of McDonald countries outside of USA, not inside USA.

[Oliver Mander]

I saw somewhere they dealing most of McDonald countries outside of USA, not inside USA.
That's correct. Would have read that in the Herald earlier this year.

[RupertBear]

This thread has become the PLX fan club. I think some balance is required but I think he has probably given up. No point in a bloke banging his head against a brick wall.

I suspect he is too busy bad mouthing Jacinda and Labours handing of Covid on another thread. Had to stop reading the thread to be honest it was doing my head in :D

[Leftfield]

"PLX from Underdog to Best in Breed."

The heading from an article in NBR posted today behind a paywall.

Seems word is spreading. Exciting times as we wait patiently until Tuesday's results.

[winner69]

"PLX from Underdog to Best in Breed."

The heading from an article in NBR posted today behind a paywall.

Seems word is spreading. Exciting times as we wait patiently until Tuesday's results.

WOW what a headline

Should see action tomorrow ...hope they get in early

What's all time high share price again?

[King1212]

Gutted.... should bought in yesterday. Anyone care to sum the article up?

[winner69]

In case people haven’t read before Oliver wrote this about Plexure a company of months ago

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12314435

[Leftfield]

WOW what a headline ...Should see action tomorrow ...hope they get in early
What's all time high share price again?

No flea's on PLX.

Only question now is whether its a mongrel or pedigree!

(Previous ATH was $1.20)

[winner69]

No flea's on PLX.

Only question now is whether its a mongrel or pedigree!

(Previous ATH was $1.20)

So PLX not heading into uncharted waters .....YET

[winner69]

Tuesdays report - I will be looking at whether operating cash flow is in excess of $7m

That would mean that growth is really starting to generate some real value as opposed to just doing things and going nowhere

[Checkmate]

Where do we find this article mate? cheers.
WOW what a headline

Should see action tomorrow ...hope they get in early

What's all time high share price again?

[Leftfield]

"PLX from Underdog to Best in Breed."

The heading from an article in NBR posted today behind a paywall.

Seems word is spreading. Exciting times as we wait patiently until Tuesday's results.


Where do we find this article mate? cheers.

There's the answer you want...... if you can get behind the paywall!!!??

[King1212]

Pick a small parcel to wipe my arsh.... hopefully turned out to be good result tmrw...lol

[sb9]

"PLX from Underdog to Best in Breed."

The heading from an article in NBR posted today behind a paywall.

Seems word is spreading. Exciting times as we wait patiently until Tuesday's results.

Set up nicely for release tomorrow, am sure Craig would've been very careful in his detail with NBR (don't know what's being written as not a subscriber) not to divulge anything material which would be in breach of disclosure rules. Nevertheless, good to see PLX getting some well deserved media attention of late.

[Cadalac123]

Set up nicely for release tomorrow, am sure Craig would've been very careful in his detail with NBR (don't know what's being written as not a subscriber) not to divulge anything material which would be in breach of disclosure rules. Nevertheless, good to see PLX getting some well deserved media attention of late.

I have had NBR for a while and find it not worth the subscription tbh. The article has no insider information whatsoever and is a rehash of all information known to the market already.

[sb9]

I have had NBR for a while and find it not worth the subscription tbh. The article has no insider information whatsoever and is a rehash of all information known to the market already.

Couldn't agree more, they simply seem to stamp behind pay wall lock for all articles some of which are freely available from other media sources.

[forest]

Couldn't agree more, they simply seem to stamp behind pay wall lock for all articles some of which are freely available from other media sources.

Not only that but it is hard to see why the headline "PLX from dog to Best in Breed".
I read the article and no comparisons are made between PLX and their competitors, so to me the headline seems inappropriately, sadly.

[Leftfield]

Not only that but it is hard to see why the headline "PLX from dog to Best in Breed".
I read the article and no comparisons are made between PLX and their competitors, so to me the headline seems inappropriately, sadly.

Thanks for the info' re the article. I'm not surprised that the article does not live up to it's headline. Like some here, I don't have much faith in NBR.

IMO what is more interesting is the 'release' of this 'story' at such a time prior to a market update. The timing indicates some belief that the market update will be positive. However, without substance it is just "noise".

I'm more than happy to wait for the market announcement.

[winner69]

This is not a buy the rumour sell the fact scenario playing out is it?

[RupertBear]

This is not a buy the rumour sell the fact scenario playing out is it?

Been wondering that myself Winner.....this recent jump up will jump down very sharply tomorrow if the results miss the markets expectation even by a Bears whisker :mellow:

[RupertBear]

I swear I can hear Balance saying pump them then dump them :scared:

[Cobber]

I swear I can hear Balance saying pump them then dump them :scared:

This new CEO doesn't want a pump and dump reputation.

I'd like to think he is pumping the name because they have some news around an acquisition or something. Maybe McDonalds increasing their share of ownership. Something more than just the results.

[Leftfield]

This is not a buy the rumour sell the fact scenario playing out is it?

Patience Grasshopper......all will be revealed tomorrow.

11594

[Cadalac123]

This is not a buy the rumour sell the fact scenario playing out is it?

Sure if you think depth or shareprice movements before an announcement mean anything. Seen plenty of times when they meant zilch, with some stocks dipping before a strong spike the next day post announcement.

Now if the announcement is bad, then yeah this probably was the case

[Checkmate]

Ahhhh thanks bro, yeah I see the annoying subscription blocker too... 😅 damn herald!


There's the answer you want...... if you can get behind the paywall!!!??

[Sideshow Bob]

Plexure announces 50% Revenue Growth & $14.2m Cash Reserve


19/5/2020, 8:31 amANNREP
Key achievements:
• Significant financial performance improvement - revenue from contracts with customers of $25.3m, up 50% or $8.4m from FY19.
• Net profit of $1.0m, up 243% from the FY19 loss of $0.7m.
• $14.2m cash on hand at balance date and cashflow positive from operating activities for the third successive year.
For the year ended 31 March 2020, Plexure recorded it’s best trading result to date, which continues the robust forward momentum the Company has achieved in the last three years. Strong revenue growth of 50% from FY19 resulted in a total revenue from customers of $25.3m and a cash position of $14.2m.
In April 2019, McDonald’s purchased a 9.9% equity stake in Plexure. On the back of that investment the Company’s relationship with McDonald’s has continued to strengthen throughout FY19 with Plexure now operating in 60 McDonald’s markets worldwide. The Company continues to broaden the scope of offering for McDonald’s including enhanced AI-based data analytics.

During the year, Plexure also added 13 new markets and customers. These included White Castle - a well-established US burger chain was signed in July 2019, confirming the attractiveness of the Company’s proposition for the QSR sector, and Super Indo – one of Indonesia’s leading supermarket chains (51% owned by European multi-national grocery organisation, Ahold Delhaize) who came on board in February 2020, opening up a new category for Plexure. “Super Indo is our first customer in the grocery sector and one we’re delighted to be collaborating with” says Craig Herbison, Plexure CEO and Director.

“Indonesia is currently Asia’s largest and fastest growing digital economy. For Super Indo to recognise the relevance and value of integrating Plexure’s technology demonstrates that a highly personalised, mobile-centric customer engagement offering is perfect for this high-growth category.”

Plexure’s three-horizon transformation strategy is well into its third phase of ‘Execute for Growth’ having delivered the first two horizons of ‘Stabilise for Growth’ in late FY18 and ‘Build Foundations for Growth’ in the first half of FY19. “A significant focus of our ‘Execute for Growth’ phase is investment in our team to secure the very best talent to deliver the Company strategy, as recently demonstrated by Andrew Flavell joining as CTO from his VP of Architecture role at Nike in the US”, Mr Herbison continues. Plexure now has 139 staff following steady growth in its engineering, marketing and sales teams.

Significant investment in Plexure’s core platform technology has increased the Company’s world-leading scalability and availability. A strong customer focus sees the Company aligning closely with the strategic digital transformation activities of its clients to build solutions that enable deeply personalized customer experiences. Plexure’s Chairman Phil Norman says “In FY21 Plexure will continue its strong forward trajectory, deploying cash reserves to enhance the Company’s proposition and continue to drive new and improved revenue streams for our customers.”

As with every organisation, Plexure is closely monitoring the impact of COVID-19 on Company operations. “To date, the impact to us has been minimal and Plexure continues to grow personnel numbers as we focus on existing and emerging opportunities,” says Mr Herbison. COVID-19 has amplified the requirement for customers to shop at distance, which has accelerated the adoption of products like Mobile Order and Pay, that Plexure has deployed across 2,700 McDonald’s stores in Japan.
ENDS

[Baa_Baa]

Boom, exceeds guidance. Great result! https://www.nzx.com/announcements/353298

[Checkmate]

We did it folks! :t_up: $1million net profit not as great as i thought, but i was being optimistic.. Whats great is the revenue growth was higher than i expected.
https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=5363763 (https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=5363763)






ANNREP: PLX: Plexure announces 50% Revenue Growth & $14.2m Cash Reserve
08:31a.m.





PLX


19/05/2020 08:31


ANNREP


PRICE SENSITIVE


REL: 0831 HRS Plexure Group Limited





ANNREP: PLX: Plexure announces 50% Revenue Growth & $14.2m Cash Reserve





Key achievements:


o Significant financial performance improvement - revenue from contracts with


customers of $25.3m, up 50% or $8.4m from FY19.


o Net profit of $1.0m, up 243% from the FY19 loss of $0.7m.


o $14.2m cash on hand at balance date and cashflow positive from operating


activities for the third successive year.





For the year ended 31 March 2020, Plexure recorded it's best trading result


to date, which continues the robust forward momentum the Company has achieved


in the last three years. Strong revenue growth of 50% from FY19 resulted in a


total revenue from customers of $25.3m and a cash position of $14.2m.





In April 2019, McDonald's purchased a 9.9% equity stake in Plexure. On the


back of that investment the Company's relationship with McDonald's has


continued to strengthen throughout FY19 with Plexure now operating in 60


McDonald's markets worldwide. The Company continues to broaden the scope of


offering for McDonald's including enhanced AI-based data analytics.





During the year, Plexure also added 13 new markets and customers. These


included White Castle - a well-established US burger chain was signed in July


2019, confirming the attractiveness of the Company's proposition for the QSR


sector, and Super Indo - one of Indonesia's leading supermarket chains (51%


owned by European multi-national grocery organisation, Ahold Delhaize) who


came on board in February 2020, opening up a new category for Plexure.


"Super Indo is our first customer in the grocery sector and one we're


delighted to be collaborating with" says Craig Herbison, Plexure CEO and


Director.


"Indonesia is currently Asia's largest and fastest growing digital economy.


For Super Indo to recognise the relevance and value of integrating Plexure's


technology demonstrates that a highly personalised, mobile-centric customer


engagement offering is perfect for this high-growth category."





Plexure's three-horizon transformation strategy is well into its third phase


of 'Execute for Growth' having delivered the first two horizons of 'Stabilise


for Growth' in late FY18 and 'Build Foundations for Growth' in the first half


of FY19. "A significant focus of our 'Execute for Growth' phase is investment


in our team to secure the very best talent to deliver the Company strategy,


as recently demonstrated by Andrew Flavell joining as CTO from his VP of


Architecture role at Nike in the US", Mr Herbison continues. Plexure now has


139 staff following steady growth in its engineering, marketing and sales


teams.





Significant investment in Plexure's core platform technology has increased


the Company's world-leading scalability and availability. A strong customer


focus sees the Company aligning closely with the strategic digital


transformation activities of its clients to build solutions that enable


deeply personalized customer experiences. Plexure's Chairman Phil Norman says


"In FY21 Plexure will continue its strong forward trajectory, deploying cash


reserves to enhance the Company's proposition and continue to drive new and


improved revenue streams for our customers."





As with every organisation, Plexure is closely monitoring the impact of


COVID-19 on Company operations. "To date, the impact to us has been minimal


and Plexure continues to grow personnel numbers as we focus on existing and


emerging opportunities," says Mr Herbison. COVID-19 has amplified the


requirement for customers to shop at distance, which has accelerated the


adoption of products like Mobile Order and Pay, that Plexure has deployed


across 2,700 McDonald's stores in Japan.





ENDS





For more information please contact:


Andrew Dalziel,


CFO Plexure Group Limited


Mobile: +64 27 6777 575


Email: andrew.dalziel@plexure.com


End CA:00353298 For:PLX Type:ANNREP Time:2020-05-19 08:31:34

[King1212]

Would love to see the market reaction today..with Dow surge 900 points ..so...good day to release result

[Leftfield]

Great news..... well done holders and thanks Checkmate for your recent contributions to this thread.

[Justin]

1m compare to current sp = 130 pe

[sb9]

We did it folks! :t_up: $1million net profit not as great as i thought, but i was being optimistic.. Whats great is the revenue growth was higher than i expected.
(https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=5363763)

Good on ya checkmate, profit is great but for Saas company revenue growth is what matters...

[Checkmate]

A link to plexures annual report - http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/PLX/353298/322751.pdf

Some key notes -
Platform users increased 72.7Million
Revenue increase 50% to $25.5Million
Cash in bank of $14.2million

[winner69]

Pretty amazing

Bit disappointed operating cash flow was only $4.5m (much lower than in checkmates dcf)

But who cares ....great headlines, great result, worlds happy and its all positive

Shareprice over $1.19 today?

Plexure - No longer an underdog but BEST IN BREED

[Checkmate]

Would love to see the market reaction today..with Dow surge 900 points ..so...good day to release result Agreed! i wa thinking the same thing, now shall we place bets on what we think the share price might end up at today? :cool:

[Checkmate]

Pretty amazing

Bit disappointed operating cash flow was only $4.5m (much lower than in checkmates dcf)

But who cares ....great headlines, great result, worlds happy and its all positive

Shareprice over $1.19 today?

That'd be amazing... $1.20 or higher and ill be happy!

Yeah i was maybe a bit optimistic with my Cashflows i will revise that and hopefully estimate more accurate for next time haha.

[winner69]

That'd be amazing... $1.20 or higher and ill be happy!

Yeah i was maybe a bit optimistic with my Cashflows i will revise that and hopefully estimate more accurate for next time haha.

Will change your valuations though

[winner69]

Got to get sharesies folk involved

[sb9]

Agreed! i wa thinking the same thing, now shall we place bets on what we think the share price might end up at today? :cool:

I think it'll push upto hit ATH at the open due to FOMO, but might finish the day around 1.10-1.12 and eventually will put another ATH in few weeks time once profit takers (option holders) had finished up their selling.

[winner69]

I think it'll push upto hit ATH at the open due to FOMO, but might finish the day around 1.10-1.12 and eventually will put another ATH in few weeks time once profit takers (option holders) had finished up their selling.

Jeez sb9 ....you more bullish than me ....what’s going on

[Oliver Mander]

Winner, operating cashflow of $4.5 is above my DCF of $3.5m tho...me happy!

[bull....]

good result , i thought balance said the company was going bust?

[Cadalac123]

Report as expected . Good revenue growth. Future revenue from super indo provided it does well since that wasn’t a contributor in the current fy so something to look forward to hopefully .: lol

[sb9]

Report as expected . Good revenue growth. Future revenue from super indo provided it does well since that wasn’t a contributor in the current fy so something to look forward to hopefully .: lol

Hints from CEO as to what to expect....

Plexure’s three-horizon transformation strategy is well into its third phase of ‘Execute for Growth’ having delivered the first two horizons of ‘Stabilise for Growth’ in late FY18 and ‘Build Foundations for Growth’ in the first half of FY19. “A significant focus of our ‘Execute for Growth’ phase is investment in our team to secure the very best talent to deliver the Company strategy, as recently demonstrated by Andrew Flavell joining as CTO from his VP of Architecture role at Nike in the US”, Mr Herbison continues. Plexure now has 139 staff following steady growth in its engineering, marketing and sales teams.

[Gerald]

This was interesting; " The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers. "

[winner69]

Winner, operating cashflow of $4.5 is above my DCF of $3.5m tho...me happy!

That’s good

$4.5m pretty solid.

PLX market value going to be over $150m soon .......so the bulk of that ‘value’ is what cash is going to be generated many years out eh

[jonu]

good result , i thought balance said the company was going bust?

It's an encouraging report. But does it warrant the company being valued at 130 million @ 93 cents?

Be careful out there folks.

[blobbles]

This was interesting; " The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers. "

Exxxceeeelllent. This is exactly what I was hoping for. It makes a lot more sense to derive your revenue this way IMO.

The big thing about PLX this year is their focus on their staff growth and getting top quality talent. This is one of the biggest factors for IT companies to be able to execute a growth strategy, along with having management that is capable of delivery, which it looks like they are. Still early days for PLX, but with their US sales team, let's hope they sign one of the big ones in the near future (a Walmart or Costco or Kroger or similar). Next few years will be huge for this company IMO, so happy I was picking up shares at <60c not long ago!

[zs_cecil]

This shift comes with the cost though. The annual report did indicate the investment on platform will have some implication to the financial result for FY21 because of this shift. If the growth happens, it will potentially raise capital and undertake ASX dual listing. I guess the good side is that it will generate more income to support the staff growth.

Nevertheless, this is a great change of the revenue model. Looking forward to the future growth of this company.


This was interesting; " The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers. "

[Sideshow Bob]

It's an encouraging report. But does it warrant the company being valued at 130 million @ 93 cents?

Be careful out there folks.

But these days it doesn't really matter?? There seem to be a few companies out there with their share price divorced from reality - at least these guys are growing, profitable, have cash in the bank and cashflow positive.

[Checkmate]

11596There's some high bids at 99cents :t_up:

[forest]

Reading note 21, it seems that of all the current directors only the chairman Phil Norman owns shares in PLX, and even his holding seemed to have been diluted during the last FY.
The CEO, Craig Herbison does have options but to me it seems unusual that if everything is so positive why so little interest of the directors to participate in owning part of PLX. Or is it that the other directors also have options which I am not aware of ???
What do others think about the seemingly very positive results and lack of directors shareholding??

[blobbles]

Reading note 21, it seems that of all the current directors only the shareman Phil Norman owns shares in PLX, and even his holding seemed to have been diluted during the last FY.
The CEO, Craig Herbison does has options but to me it seems unusual that if everything is so positive why so little interest of the directors to participate in owning part of PLX. Or is it that the other directors also have options which I am not aware of ???
What do others think about the seemingly very positive results and lack of directors shareholding??

I agree, something to be very wary about. If they start buying in or converting their options, it will be a very good sign though...

[Balance]

Seriously & sincerely happy for you holders to have done well with the sp back to where it was in June 2019 - NZ needs tech companies to do well.

So let's have a quick look at the H2 results :

Revenues generated of $13.49m in H2.
Cash increased by $0.6m from $13.6m to $14.2m.
NPAT dropped from $1.18m to $1.0m in H1 - so loss in H2.

Running fast to stand still?

[whatsup]

B S Bal, , Are you going to give us ( once again ) your considered opinion , just like all of last years ranting or are you hunkered down on MMH ?

[Balance]

B S Bal, , Are you going to give us ( once again ) your considered opinion , just like all of last years ranting or are you hunkered down on MMH ?

You got my opinion.

Revenues generated of $13.49m in H2.

Cash increased by $0.6m from $13.6m to $14.2m.

NPAT dropped from $1.18m in H1 to $1.0m - so loss in H2.

Why the pizza in the AR when its only major customer is McD?

[dobby41]

B S Bal, , Are you going to give us ( once again ) your considered opinion , just like all of last years ranting or are you hunkered down on MMH ?

I think Sideshow Bob has it sussed - ride the wave even if it seems to good to be true.
Just be careful you don't get dumped in the sand and break something.

[Baa_Baa]

I agree, something to be very wary about. If they start buying in or converting their options, it will be a very good sign though...

7.9m options to execs & key persons, 5 year conversion window. All in the money.

[silverblizzard888]

Its a good result, it proves what the company is doing is building traction and establishing itself as a strong player. Its a growth company and it should be measured as a growth company rather than on its profits and cashflows at this stage. They need to put the investment to build the technology and hire the best talent to continue being better at what they do, though it does take time and patience. Its a $1.50 stock for me given the current growth and financial position.

[mfd]

Seriously & sincerely happy for you holders to have done well with the sp back to where it was in June 2019 - NZ needs tech companies to do well.

So let's have a quick look at the H2 results :

Revenues generated of $13.49m in H2.
Cash increased by $0.6m from $13.6m to $14.2m.
NPAT dropped from $1.18m to $1.0m in H1 - so loss in H2.

Running fast to stand still?

Investing for growth as expected. They raised a large amount of money from McDonald's - what would be the point if they didn't intend to invest it? The company had money and was cashflow positive at that point, they didn't need to money to keep the lights on, they took it to invest.

Very happy with the report, keep up the good work. Once they grow decent leverage they will be spitting out cash.

[Balance]

Investing for growth as expected. They raised a large amount of money from McDonald's - what would be the point if they didn't intend to invest it? The company had money and was cashflow positive at that point, they didn't need to money to keep the lights on, they took it to invest.

Very happy with the report, keep up the good work. Once they grow decent leverage they will be spitting out cash.

My previous comments were that PLX is having to spend up BIG to support the McD contract. Results show that to be the case.

But hi, as I wrote a few days ago - there's every reason to be very happy with the markets at present!

[forest]

7.9m options to execs & key persons, 5 year conversion window. All in the money.

Yes, I am aware of the amount of options. But can we tell if any are allocated to the directors not holding shares?

[bull....]

sell the news event by the looks at this early stage

[King1212]

Can not blame them..a lot of them got cought at $1 ish since the crash..give it couple days ...

[sb9]

Let traders do what they intend to do, take short term profits....

[Justin]

im doubt in compare with pph current pe 75 and plx pe 130-140，still worth to buy？

[blobbles]

im doubt in compare with pph current pe 75 and plx pe 130-140，still worth to buy？

All this talk of PE isn't really applicable to a growth company. Earnings are used direction to grow the company... https://www.investopedia.com/articles/fundamental-analysis/10/false-signals-pe-ratio.asp

[Cadalac123]

I’ll be honest I sold at above $1 again . I topped up at 0.39 and above during the coronovirus dip so wanted to actualise my profits and not be greedy.

Still on my watchlist and I’m still bullish long term on plexure but everyone has different strategies so it didn’t make sense for me to not exit

[Justin]

All this talk of PE isn't really applicable to a growth company. Earnings are used direction to grow the company... https://www.investopedia.com/articles/fundamental-analysis/10/false-signals-pe-ratio.asp

pph not growth company anymore？

[RupertBear]

I’ll be honest I sold at above $1 again . I topped up at 0.39 and above during the coronovirus dip so wanted to actualise my profits and not be greedy.

Still on my watchlist and I’m still bullish long term on plexure but everyone has different strategies so it didn’t make sense for me to not exit

well done Cadalac123 ! :cool:

[Leftfield]

Happy day's in the Left Field household today.

- first haircut in months
- first visit to a real library in months
- PLX 16% of my portfolio and a great report

Some other gems not much commented on in the PLX report

- Future revenue streams will more accurately reflect growth in customers and usage as contracts change
- Customers now 187m with a stated goal of 500m (timing not stated - achievable in 2 - 3 years?)
- Future M& A possible as is a cap raise to facilitate this
- Assessing ASX dual listing
- Pipeline of potential customers "has grown significantly'
- AI will provide an additional future revenue stream.
- EPS around .70c

Ssssooo my gutometer says SP should settle around $1.20 and head to $2.00 in the not too distant future. But then what do I know!!?? DYOR.

[blobbles]

pph not growth company anymore？

They can be a growth company AND you can use PE ratio's. But you are comparing 2 companies at different phases of growth and different level of maturity - which is not that useful. Sure they started around the same time, but it took PLX a lot longer to actually sort their s**t out (management being the big changes).

[davflaws]

My previous comments were that PLX is having to spend up BIG to support the McD contract. Results show that to be the case.

But hi, as I wrote a few days ago - there's every reason to be very happy with the markets at present!

So would you like to revisit the prediction that you eventually made a few months ago to the effect that when the tide went out PLX would be exposed as having been swimming naked?

[Nigelk]

At $1 - circa $140M market cap, they're still only 5X revenue plus cash on hand.
Not bad for a company growing so fast and profitable

[Balance]

So would you like to revisit the prediction that you eventually made a few months ago to the effect that when the tide went out PLX would be exposed as having been swimming naked?

Tide is still going out, my friend.

As I wrote a few days ago, there is every reason to be very happy with the markets at present.

I am a happy chappy. Hope you are too.

[winner69]

No guidance as to the future was there?

Need to update my DCF to see where this going - as the last year or so Free Cash Flow trend not looking that good

But keeping the faith - want to see a new all time high

[Brain]

Tide is still going out, my friend.

As I wrote a few days ago, there is every reason to be very happy with the markets at present.

I am a happy chappy. Hope you are too.

By the tone of your posts Balance I am guessing you are taking advantage of this bounce and cashing up. If the markets don’t go lower than this then we have all dodged a bullet and that is very unlikely.
I think we are all in the crosshairs. All a matter of time or timing.

[whatsup]

By the tone of your posts Balance I am guessing you are taking advantage of this bounce and cashing up. If the markets don’t go lower than this then we have all dodged a bullet and that is very unlikely.
I think we are all in the crosshairs. All a matter of time or timing.

Brian, go back over B S Bal's postings from last year and see his/her's pumping and dumping comments regarding " back door listings " of which PLX is one of the latest, hatred in its finest , never was a holder according to him/her !!!

[Balance]

By the tone of your posts Balance I am guessing you are taking advantage of this bounce and cashing up. If the markets don’t go lower than this then we have all dodged a bullet and that is very unlikely.
I think we are all in the crosshairs. All a matter of time or timing.

Time to rebalance the portfolio, I would have thought for all investors?

These are uncertain times except for these certainties:

- governments will print and pump as much money as required to cushion the recession,

- interest rates can only go lower

- and sustainable high yield & growth stocks are going higher.

[Brain]

Brian, go back over B S Bal's postings from last year and see his/her's pumping and dumping comments regarding " back door listings " of which PLX is one of the latest, hatred in its finest , never was a holder according to him/her !!!

Sorry whatsup I should have worded that a bit better. I meant shares in general. I know he doesn’t own PLX

[Balance]

By the tone of your posts Balance I am guessing you are taking advantage of this bounce and cashing up. If the markets don’t go lower than this then we have all dodged a bullet and that is very unlikely.
I think we are all in the crosshairs. All a matter of time or timing.

Time to rebalance the portfolio, I would have thought for all investors?

These are uncertain times except for these certainties:

- governments will print and pump as much money as required to cushion the recession,

- interest rates can only go lower

- and sustainable high yield & growth stocks are going higher.

Up to each individual to position themselves according to their own beliefs. 😊

[bull....]

Time to rebalance the portfolio, I would have thought for all investors?

These are uncertain times except for these certainties:

- governments will print and pump as much money as required to cushion the recession,

- interest rates can only go lower

- and sustainable high yield & growth stocks are going higher.

so from all your posts on plx it seems

1. you were down ramping the stock all the time in the hope of buying them cheap or
2. you were totally wrong about the stock and are now trying to confuse people with unclear statements to confuse people about actually weather you held the stock or not

[Balance]

Brian, go back over B S Bal's postings from last year and see his/her's pumping and dumping comments regarding " back door listings " of which PLX is one of the latest, hatred in its finest , never was a holder according to him/her !!!

And I stand by my comments - unlike certain posters!

[whatsup]

so from all your posts on plx it seems

1. you were down ramping the stock all the time in the hope of buying them cheap or
2. you were totally wrong about the stock and are now trying to confuse people with unclear statements to confuse people about actually weather you held the stock or not

bull, Finally B S Bal has been uncovered, congrats !

[Balance]

bull, Finally B S Bal has been uncovered, congrats !

Gloves off.

Post coming from self-confessed ramper Whatsup + a liar* too to boot! (Serko, remember - you bought right at the bottom at 29c).

* Proof available if required.

Sincere advice for you - ‘If you tell the truth you don't have to remember anything. If you tell a lie, you will have to remember what lie you told and who you told it to.‘ Mark Twain

[Leftfield]

Just wanted to say that it is V sad that the PLX thread has been overtaken by anger and insults.

Chill out folks and stick to the fundamentals of the company.

[forest]

Just wanted to say that it is V sad that the PLX thread has been overtaken by anger and insults.

Chill out folks and stick to the fundamentals of the company.

Completely agree.

Back to PLX, is there anyway of finding out if Directors own options?

[Cadalac123]

Just wanted to say that it is V sad that the PLX thread has been overtaken by anger and insults.

Chill out folks and stick to the fundamentals of the company.

Agreed . I’m going to keep following to see

- the real impact covid had on April and May revenues
- how much revenue can be squeezed out of super indo and whether the agreement extends to further grocery opportunities
- I’m not really that worried about npat as I feel it’s asking a little bit too much at this stage . Revenue achieved this year is respectable and actually quite good, will also see what impact the change in pricing model will have to bring more user based

[Leftfield]

Completely agree.
Back to PLX, is there anyway of finding out if Directors own options?

Page 37 of the FY20 AR

At reporting date, the Directors of the Company controlled 2% (2019: 3%) of the voting shares in the Company.

[winner69]

Completely agree.

Back to PLX, is there anyway of finding out if Directors own options?

Nothing in AR to indicate they have any

Lack of Disclosure notices over last few years would indicate no options.

[winner69]

Page 37 of the FY20 AR

At reporting date, the Directors of the Company controlled 2% (2019: 3%) of the voting shares in the Company.



Mr Norman has 3 million plus a bit shares

That’s all the directors hold.

See 6 on Page 56

[forest]

Nothing in AR to indicate they have any

Lack of Disclosure notices over last few years would indicate no options.

Thanks Winner.
So I have more shares than 4 of PLX Directors combined.
Doesn't often happen in companies I invest.
Hmm,
Wish I knew if that was a good thing or not. :)

[winner69]

Thanks Winner.
So I have more shares than 4 of PLX Directors combined.
Doesn't often happen in companies I invest.
Hmm,
Wish I knew if that was a good thing or not. :)

Suppose most on this thread are the same :D

But the Directors get a a pretty good fee ...and staff don’t seem to be doing badly either for a $25m revenues company

[Gerald]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996

Note: Behind paywall

(https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996) Did Plexure take any hit from the pandemic during the first quarter?'


"We haven't really had a big impact. The thing about being a platform-as-a-service or software-as-a-service business is that our relationships are license-based. We have some transaction revenues and some transaction revenue has come off a little bit but not significantly," Herbison says.

(https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996)

[keenkiwiflyer]

Given many thought a new high may occur , with excellent results what do you all think of the current SP?

Seems lower than what many expected given the results. Expect to be pushing 1.20s in the next month?

[winner69]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996

Note: Behind paywall

(https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996) Did Plexure take any hit from the pandemic during the first quarter?'


"We haven't really had a big impact. The thing about being a platform-as-a-service or software-as-a-service business is that our relationships are license-based. We have some transaction revenues and some transaction revenue has come off a little bit but not significantly," Herbison says.

(https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12332996)

Love the brags bit ...go Craig ....pump as much as you can.

Cool stuff

[Balance]

Love the brags bit ...go Craig ....pump as much as you can.

Cool stuff

Notice after the initial pump this morning, the bid side is getting thinner and thinner?

And how several decent size bids have mysteriously disappeared as the offer side gets heavier and the bid side gets taken out?

Guess the 'buyers' weren't really keen on getting stock in volume at 91c, 93c and 95c after all huh?

All good stuff.

[Cadalac123]

Love the brags bit ...go Craig ....pump as much as you can.

Cool stuff

Yet doesn't disclose anything about April and May revenues... zero forecasts don't make me a happy holder. I feel it's better to re-enter when there's a clear picture.

I can see why a lot of people here wouldn't exit as if you held long on some stocks say over 5 years you could 3-5bag, but that isn't my style of investing

[winner69]

Yet doesn't disclose anything about April and May revenues... zero forecasts don't make me a happy holder. I feel it's better to re-enter when there's a clear picture.

I can see why a lot of people here wouldn't exit as if you held long on some stocks say over 5 years you could 3-5bag, but that isn't my style of investing

Said he might give us an idea about F21 in a few weeks time

Cynically one could jump to the conclusion he’s playing with the market here

[Cadalac123]

Said he might give us an idea about F21 in a few weeks time

Cynically one could jump to the conclusion he’s playing with the market here

I mean the entire month of April and most of May is gone. Quite interesting how he can't even state that revenues are consistent yoy. Or any update on superindo yields post launch in March.

I'm going to be optimistic and hope he's genuine and not like the paysauce directors who clearly want to manipulate the price

[Baa_Baa]

Up about 50% in two weeks and some people still not happy, tough audience.

[Balance]

Up about 50% in two weeks and some people still not happy, tough audience.

Because they bought a year ago and paid $1.10?

[Baa_Baa]

Because they bought a year ago and paid $1.10?

You’ll be fine though getting in in the .40’s. Nice you care about the folks who don’t know how to work the market. PLX definitely still not a long hold fix and forget, such a reliable recurring pattern for trading, esp with the frequency shortening this past year or so, until it settles into a sustainable long term solid growth pattern. Happy to hold a core position for long term and trade a few to accumulate more in the inevitable dips.

[winner69]

Craig all excited on radio this morning pumping Plexure

ASX listing soon to improve liquidity and raise funds for acquisition etc etc ...and better coverage leading to higher valuations

And making the platform stable for 500 million users

Cool stuff

https://www.rnz.co.nz/audio/player?audio_id=2018747174

[winner69]

Jeez 500 million is a big number

500,000,000 I think

Better if he said half a billion :t_up:

[sb9]

Craig all excited on radio this morning pumping Plexure

ASX listing soon to improve liquidity and raise funds for acquisition etc etc ...and better coverage leading to higher valuations

And making the platform stable for 500 million users

Cool stuff

https://www.rnz.co.nz/audio/player?audio_id=2018747174

Pretty cool eh, ASX listing is where they would realise true potential just like Xero, PPH, Serko etc...

[Brain]

Jeez 500 million is a big number

500,000,000 I think

Better if he said half a billion :t_up:

8 billion people on planet earth. Half a billion users would truly be remarkable. Doesn’t seem right does it?

[King1212]

Another pph soon....

[winner69]

8 billion people on planet earth. Half a billion users would truly be remarkable. Doesn’t seem right does it?

They’re nearly half way there so must be true

Just imagine if they somehow monetised all this and got 10 cents from each user .....wow

Our Craig sure is enthusiastic eh.

[King1212]

How much that would be master winner? My maths is really poor....I used a calculator...but numbers out was blurred....

[Brain]

They’re nearly half way there so must be true

Just imagine if they somehow monetised all this and got 10 cents from each user .....wow

Our Craig sure is enthusiastic eh.

Their major customer is McDonald’s so most of the users must be McDonalds customers. I suspect these are not distinct users.

[Brain]

They’re nearly half way there so must be true

Just imagine if they somehow monetised all this and got 10 cents from each user .....wow

Our Craig sure is enthusiastic eh.

10c per user per annum is only $50m turnover. 10c per transaction would be very good.

[winner69]

10c per user per annum is only $50m turnover. 10c per transaction would be very good.

$50m every week is a lot though

All profit

[keenkiwiflyer]

Either way, on the back of the announcement yesterday I am wondering why the SP has not reached 1.10s?

[Brain]

$50m every week is a lot though

All profit

Sure is so it all depends on how they are clipping the ticket.

[whatsup]

Because they bought a year ago and paid $1.10?

Yeh but some of us paid circa .20 two years ago !!

[Checkmate]

That doesn't seem too far fetched as a large majority of the people of this earth are consumers :t_up:
I bet half the people on this earth have eaten Maccas before too HAHA.


8 billion people on planet earth. Half a billion users would truly be remarkable. Doesn’t seem right does it?
They’re nearly half way there so must be true

Just imagine if they somehow monetised all this and got 10 cents from each user .....wow

Our Craig sure is enthusiastic eh.

[Checkmate]

Did Craig mention something about ASX listing? HOLY MOLY $$$$$
Pretty cool eh, ASX listing is where they would realise true potential just like Xero, PPH, Serko etc...

[Checkmate]

Right just listened to the RNZ recording https://www.rnz.co.nz/audio/player?audio_id=2018747174 Thanks to SB9 up there..
Craig did mentioned eyeing up an ASX listing to have better coverage, liquidity, capital and business valuation.

WOW. I think i'll hold for a little while longer...

[Baa_Baa]

Right just listened to the RNZ recording https://www.rnz.co.nz/audio/player?audio_id=2018747174 Thanks to SB9 up there..
Craig did mentioned eyeing up an ASX listing to have better coverage, liquidity, capital and business valuation.

WOW. I think i'll hold for a little while longer...

Have you read the Results? It's mentioned in the Chairman's introduction.

[Wolfofnorthshore]

What does it mean if they do Moved to ASX? Do they pulled out completely from nzx or both listed in nzx/asx ?

[Leftfield]

Pretty cool eh, ASX listing is where they would realise true potential just like Xero, PPH, Serko etc...

Don't forget ATM.
The depth of the sell side yesterday was a real dampener. Looks like we got to be patient, but not many companies in NZ have growth prospects like PLX at the moment. Better than money in the bank IMHO.

[Checkmate]

I just skipped through to the statements and the notes lol. Maybe I should read the chairman’s intro and all that... haha 😆
Have you read the Results? It's mentioned in the Chairman's introduction.

[Checkmate]

I have a question, maybe a dumb one, if Plexure Issued shares on the ASX.. would the price per share on both NZX and ASX be Exactly the same apart from Currency differences? I own Fletcher Building which is dual listed and it seems the prices are the same, so I assume so..

Also would a capital raise be positive for our Plexure’s valuation or would it just dilute our shares?

[sb9]

Don't forget ATM.
The depth of the sell side yesterday was a real dampener. Looks like we got to be patient, but not many companies in NZ have growth prospects like PLX at the moment. Better than money in the bank IMHO.

For sure, I was drawing parallels more in the SAAS space...

[artemis]

What does it mean if they do Moved to ASX? Do they pulled out completely from nzx or both listed in nzx/asx ?

Probably dual listing. Worked for Xero, bigly.

[Leftfield]

I have a question, maybe a dumb one, if Plexure Issued shares on the ASX.. would the price per share on both NZX and ASX be Exactly the same apart from Currency differences? I own Fletcher Building which is dual listed and it seems the prices are the same, so I assume so..

Also would a capital raise be positive for our Plexure’s valuation or would it just dilute our shares?

I'll try a quick answer;
1.) Dual listed stocks on the ASX and NZX should be at a par (subject to exchange rate differences,) however there are sometimes variations that traders can exploit. Over the longer term trends usually are usually similar. Check the TA price trends ASX v NZX for ATM, PPH, XRO etc and you'll get the idea.

2.) Dilution is always a possibility, it really comes down to the terms of the Cap raise. Each Cap raise is different. Recent example is VGL where the shares were allocated at about $1.05 and it is now trading around $1.40. So no dilution and a healthy gain for holders. I suspect any cap raise for PLX would be v beneficial for participants.

Of course DYOR.

[Checkmate]

Cheers for that answer mate. I think it’s pretty much what I was thinking.
I'll try a quick answer;
1.) Dual listed stocks on the ASX and NZX should be at a par (subject to exchange rate differences,) however there are sometimes variations that traders can exploit. Over the longer term trends usually are usually similar. Check the TA price trends ASX v NZX for ATM, PPH, XRO etc and you'll get the idea.

2.) Dilution is always a possibility, it really comes down to the terms of the Cap raise. Each Cap raise is different. Recent example is VGL where the shares were allocated at about $1.05 and it is now trading around $1.40. So no dilution and a healthy gain for holders. I suspect any cap raise for PLX would be v beneficial for participants.

Of course DYOR.

[Checkmate]

'Execute for growth' must include the ASX listing to fund the growth :t_up:

[winner69]

'Execute for growth' must include the ASX listing to fund the growth :t_up:

Better update your DCF cmate

What was your valuations again?

[Beginnerguy]

'Execute for growth' must include the ASX listing to fund the growth :t_up:

They said their current cash is enough to fund organic growth. A move to the ASX would be to raise capital for an acquisition. Otherwise, wouldn't appreciate the dilution.

[Checkmate]

Better update your DCF cmate

What was your valuations again?

$1.05 - $2.60
I am updating them currently.
I don't think the higher part of that range is too far off if they execute well.

[Cadalac123]

$1.05 - $3.50
I am updating them currently.
I don't think the higher part of that range is too far off if they execute well.

What’s your target revenue for fy21?

[Beginnerguy]

What’s your target revenue for fy21?
$33-35m seems achievable, does everyone agree?

[Baa_Baa]

$1.05 - $2.60
I am updating them currently.
I don't think the higher part of that range is too far off if they execute well.

That’s a big edit. Range between now or triple (revised but unfortunately quoted), to range between now or double. That’s fairly loose, plenty of wiggle room. You’ve got a tough audience on this site, some of us never predict future price, but if we did it’s fine tuned to a few cents range backed by evidence on what’s required to achieve it.

[Checkmate]

What’s your target revenue for fy21?
My Model has 3 scenarios (without probabilities)

Pessimistic Model i have Revenue growth at 10% @ around $28 million..

Neutral model, growth of 25% Revenue of $31million...

Optimistic growth of 40% and Revenue of $35 million

Optimistic is basically just continuing revenue growth at the average of last 4 years, and pessimistic is just a slow growth due to general economic troubles (basically a made up growth rate, i just don't think they will go backwards).

[Cadalac123]

My Model has 3 scenarios (without probabilities)

Pessimistic Model i have Revenue growth at 10% @ around $28 million..

Neutral model, growth of 25% Revenue of $31million...

Optimistic growth of 40% and Revenue of $35 million

Optimistic is basically just continuing revenue growth at the average of last 4 years, and pessimistic is just a slow growth due to general economic troubles (basically a made up growth rate, i just don't think they will go backwards).

Yeah fair enough
I’m not sure how revenue growth will pan out with the revenue model changing. Guess we’ll find out next half

[Checkmate]

That’s a big edit. Range between now or triple (revised but unfortunately quoted), to range between now or double. That’s fairly loose, plenty of wiggle room. You’ve got a tough audience on this site, some of us never predict future price, but if we did it’s fine tuned to a few cents range backed by evidence on what’s required to achieve it.
Thanks for your input, I'm trying my best...
I'll try be more thoughtful in my next analysis.
But as you know it is very hard and pretty much impossible to predict a future price of a share.... especially within a few cents!

My analysis was intended to have a pretty wide range.
The widest range is between the neutral and the optimistic $1.45-$2.60 (Optimistic was a fairly high growth rate each year for the next 4 years).

Between the pessimistic and neutral the range is only $1.05 - $1.40

The question is, how can you estimate a share price within a few cents and call it reliable? When no one knows the future... My analysis gives me a wide range where i believe if i buy shares at a margin of safety under the pessimistic value i will be pretty set for the future no matter what the price ends up (as long as it's trading at or above my lowest range).

[Checkmate]

Yeah fair enough
I’m not sure how revenue growth will pan out with the revenue model changing. Guess we’ll find out next half
True that, it is an unknown (at least for me).
But maybe it will be even better than my estimates!

[Justin]

Quote from plexure 2019 fy report :

“2019 has been Plexure Group’s (NZX:PLX) most successful year to date. The Company’s trading performance has improved dramatically: the net loss after tax reduced by 58% to $0.703m from FY18 but after removing the impact of the accounting treatment for the convertible note, the Company would have delivered a net profit after tax of $0.948m.”

Imo, $0.948m compared to fy2020 1m net profit, didn’t match with 50% increase of revenue from 16.9m to 25.3m.

[winner69]

upward trend to continue today?

[Leftfield]

Thanks for your input, I'm trying my best...

Between the pessimistic and neutral the range is only $1.05 - $1.40

The question is, how can you estimate a share price within a few cents and call it reliable? When no one knows the future... My analysis gives me a wide range where i believe if i buy shares at a margin of safety under the pessimistic value i will be pretty set for the future no matter what the price ends up (as long as it's trading at or above my lowest range).

You have done well...... don't let the sideline knockers knock you that you are accurate down to the last cent.

Always good to do your sums to try and figure a future SP. However, at the end of the day the market makes up its own mind, and anyone's guesstimates are just that.

Crikey, even the brokers get it wrong (and they know everything!)

[Cobber]

Quote from plexure 2019 fy report :

“2019 has been Plexure Group’s (NZX:PLX) most successful year to date. The Company’s trading performance has improved dramatically: the net loss after tax reduced by 58% to $0.703m from FY18 but after removing the impact of the accounting treatment for the convertible note, the Company would have delivered a net profit after tax of $0.948m.”

Imo, $0.948m compared to fy2020 1m net profit, didn’t match with 50% increase of revenue from 16.9m to 25.3m.


This is probably one of the best observations made on the results. Thanks for sharing.

[King1212]

U got u remember...2019..staff was less than 2020....so.....the revenue increase...staff cost also increase..... investors should happy PLX is not burning cash like XRO PPH ....before they are currently at today position

[Checkmate]

You have done well...... don't let the sideline knockers knock you that you are accurate down to the last cent.

Always good to do your sums to try and figure a future SP. However, at the end of the day the market makes up its own mind, and anyone's guesstimates are just that.

Thanks mate, that's exactly right.
Crikey, even the brokers get it wrong (and they know everything!)

This is so true :t_up:

[Checkmate]

upward trend to continue today?
That'd be great!

[blobbles]

This is probably one of the best observations made on the results. Thanks for sharing.

Yup, I reckon the worm turned in 2019, it is now a very good looking company (finally, after years of bulls*#t under VMob branding and crap management). I guess there was only one way to go though?

I reckon you guys should have a "Very optimistic" scenario. It seems like all your scenarios have an "organic growth" component. But there is a chance they onboard some more large customers this year and double their numbers. Their offering get's more and more compelling as their tech improves. Their tech could be huge for the marketing departments of any large companies that aren't quite there yet. Hence they are a very attractive proposition for a number of large companies trying to sell their product in a world where consumers are suddenly watching their spending closely.

[Justin]

U got u remember...2019..staff was less than 2020....so.....the revenue increase...staff cost also increase..... investors should happy PLX is not burning cash like XRO PPH ....before they are currently at today position

I read some where McDonald’s contributed around 80% or 90% of their revenue, why these revenue can’t turn to decent profit or they can’t manage spending to deal with McDonald’s? Or like Balance’s thoughts McDonald’s used them as cheaper labor?

[mfd]

I read some where McDonald’s contributed around 80% or 90% of their revenue, why these revenue can’t turn to decent profit or they can’t manage spending to deal with McDonald’s? Or like Balance’s thoughts McDonald’s used them as cheaper labor?

Maybe a little of both. They would have signed the contract with McDonald's from a position of weakness and may not have survived without them. It's fantastic that they are doing well enough from them to stay cash flow positive, develop new features, and build up other customers.

McDonald's may not push the company's profits into the stratosphere, but they kept the lights on, allowed the company to keep developing the product, and now it's a huge vote of confidence and case study to bring in new customers, where Plexure will be negotiating from a position of strength.

Additionally, the company has told us they sign a new contract with each countries McDonald's, and they are trying to make the new contracts more favourable (based on users or transactions rather than stores).

[Balance]

I read some where McDonald’s contributed around 80% or 90% of their revenue, why these revenue can’t turn to decent profit or they can’t manage spending to deal with McDonald’s? Or like Balance’s thoughts McDonald’s used them as cheaper labor?

Caution :

PLX made a loss in H2.

And they were still recruiting to service the McD contract. So costs are going to increase in H1 2021.

Seen too many of these type of deals in the past - IBM was infamous for sucking small service provider contractors dry before picking them up for a song, or simply allowing them to fall by the wayside after completion of contracts.

Then there’s Wynyard and Provenco - heaps of long tail contracts requiring extensive servicing & support which ended up bankrupting both.

Better hope that PLX’s McD contract is different! 😳

[whatsup]

Caution :

PLX made a loss in H2.

And they were still recruiting to service the McD contract. So costs are going to increase in H1 2021.

Seen too many of these type of deals in the past - IBM was infamous for sucking small service provider contractors dry before picking them up for a song, or simply allowing them to fall by the wayside after completion of contracts.

Then there’s Wynyard and Provenco - heaps of long tail contracts requiring extensive servicing & support which ended up bankrupting both.

Better hope that PLX’s McD contract is different! ��

B S Bal, can you ever admit you got this one wrong, let it go and get back to MMH !

ps there is another back door listing that you haven't rubbished and slagged off, MEE , and your old friends are all over that one!!

[Leftfield]

Balance's comments re customers are a distraction and reflect his bias.

Sure PLX may have been strongly linked to McD customers at one stage. But this will change as other clients grow and PLX's contracts evolve. Here's some pertinent comment from the just released AR.

The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers.

From this we can deduce that future revenues will more accurately reflect customer and usage numbers. Plus with user numbers set to increase from 187mill to 500 mill, there will be increased benefits of scale.

[bull....]

B S Bal, can you ever admit you got this one wrong, let it go and get back to MMH !

ps there is another back door listing that you haven't rubbished and slagged off, MEE , and your old friends are all over that one!!

comvita comes to mind , balance rubbished it big time and like plx is one of the best performers this year.

[sb9]

Balance's comments re customers are a distraction and reflect his bias.

Sure PLX may have been strongly linked to McD customers at one stage. But this will change as other clients grow and PLX's contracts evolve. Here's some pertinent comment from the just released AR.

The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers.

From this we can deduce that future revenues will more accurately reflect customer and usage numbers. Plus with user numbers set to increase from 187mill to 500 mill, there will be increased benefits of scale.

Well said LF, those who can understand and decipher the changing model will appreciate PLX future prospects.

[Balance]

Balance's comments re customers are a distraction and reflect his bias.

Sure PLX may have been strongly linked to McD customers at one stage. But this will change as other clients grow and PLX's contracts evolve. Here's some pertinent comment from the just released AR.

The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers.

From this we can deduce that future revenues will more accurately reflect customer and usage numbers. Plus with user numbers set to increase from 187mill to 500 mill, there will be increased benefits of scale.

You are assuming - you should get confirmation which I am sure PLX will be only too happy to give, and provide you too with some sensitivities of how their profit will grow with number of customer.

[Leftfield]

You are assuming - you should get confirmation which I am sure PLX will be only too happy to give, and provide you too with some sensitivities of how their profit will grow with number of customer.

Your assuming that McD's is happy to get its "pound of flesh' by screwing PLX's profit.

IMHO McD's will get their cake and eat it via PLX share price appreciation on their original investment - as PLX's profits grow.

But then what do I know I'm just a happy holder from .21c with a big portion happily 'free-hold."

[Balance]

B S Bal, can you ever admit you got this one wrong, let it go and get back to MMH !

ps there is another back door listing that you haven't rubbished and slagged off, MEE , and your old friends are all over that one!!

Oh dear!

Bid side suddenly looking very thin indeed.

Maybe some punters are waking up to the fact that PLX made a LOSS in the second half and the possibility that next year could be even worse?

[Balance]

Your assuming that McD's is happy to get its "pound of flesh' by screwing PLX's profit.

IMHO McD's will get their cake and eat it via PLX share price appreciation on their original investment - as PLX's profits grow.

But then what do I know I'm just a happy holder from .21c with a big portion happily 'free-hold."

Which part of PLX making a LOSS in the second half, with more costs - especially staff, to pile on in F2021 with the McD contract do you not get?

And well done to you - as happy as I am with my Serko shares at 29c too - but what about the ones sucked in by the self-confessed rampers on this stock & thread?

[Beginnerguy]

Which part of PLX making a LOSS in the second half, with more costs - especially staff, to pile on in F2021 with the McD contract do you not get?

And well done to you - as happy as I am with my Serko shares at 29c too - but what about the ones sucked in by the self-confessed rampers on this stock & thread?

I believe the magnificent Serko also made a loss in their first half (pre the virus). Have they ever generated positive operating cash-flow? I understand Plexure has for the past 3 years. Growing cash balance, not shrinking.

Also, weren't you the guy who bought FBU? How's that going?

[Justin]

last fy they signed contracts with white castle and indo supermarket，we only see the SP pump up after annoucement then down again，and did not see the profit coming in report.

why plexure draw me attention becauae macdonald snapped 10% of their shares and they can get numerous contracts from macdonald worldwide，but i tried macdonald app in nz，beside the coupon，i did not see any breakthrough technology over there，i am still curious why so many ppl believe they can sign contract with another industry giant with decent profit in near future.

[Cadalac123]

Which part of PLX making a LOSS in the second half, with more costs - especially staff, to pile on in F2021 with the McD contract do you not get?

And well done to you - as happy as I am with my Serko shares at 29c too - but what about the ones sucked in by the self-confessed rampers on this stock & thread?

To be fair balance why would having a net profit at this stage of their transformation even matter ? They are literally in their expansion phase, I would rather seem then employ capital on expansion to facilitate platform growth and stability and new product mix

[Beginnerguy]

They have most of their technology deployed in Japan. Possibly the NZ contract doesn't require mobile order and pay and or geo fencing. Also, you're thinking purely from a front-end perspective. The data they glean from the backend is the key as it's super power for Mcd's in creating personalised marketing campaigns. The secret to their business is in the data they capture on purchases.

[Nigelk]

[QUOTE=Balance;816820]Which part of PLX making a LOSS in the second half, with more costs - especially staff, to pile on in F2021 with the McD contract do you not get?

SaaS companies generally add staff/cost to attract new clients, not support existing ones. Unless the client is paying for those enhancements.

[Beginnerguy]

The CEO also said in an article with the Herald I read that their customers are doubling down on their efforts. I imagine this is giving PLX more business. Also he'll be making a forecast in a few weeks so let's see then.

They made it clear last year that FY20 and FY21 were going to be expansion years with 'investment impacting financial results'. Thus far they have delivered mostly with they're said, although I'd like to see more customers onboarded to reduce reliance on Mcd's.

[Brain]

Plx currently have 170m users and most of them are probably associated with McDonalds.I am a shareholder average buy in @ 32 c so I am very happy with the current share price. I sold half of my holding over the last few months. Best to take some profits. I am cautious and will continue to be cautious with this share until I see some decent revenue from non McDonalds customers. White Castle is a relative minnow. Indonesia is a possibility for decent growth in users. PLX has had a lot of difficulty in selling their services and I am puzzled by that as clearly McDonalds think it is very good and that in itself should be a good selling point.

[Cadalac123]

I'm amazed the 50% revenue growth didn't break the previous resistance achieved on the McDonalds investment alone. Two new contracts since then. Wonder if it's just heavy profit taking.. or the capital raise point scaring some people off

[Checkmate]

I'm amazed the 50% revenue growth didn't break the previous resistance achieved on the McDonalds investment alone. Two new contracts since then. Wonder if it's just heavy profit taking.. or the capital raise point scaring some people off
Maybe profit taking and worry of Covid, and I think a lot of people believe there’s a lot of competitors out there in the market for CRM, I listened to Craig Herb today in his herald interview and he said that same thing and that there’s only 5 companies really that they benchmark (Didn’t say which companies but I can guess a few).
Anyway, he said they don’t really have the same product as Plexure and he thinks Plexures product is really quite “special”. So that was nice.

I guess overall market sentiment and fear of Economic downturn is keeping it below $1..

[Beginnerguy]

Plx currently have 170m users and most of them are probably associated with McDonalds.I am a shareholder average buy in @ 32 c so I am very happy with the current share price. I sold half of my holding over the last few months. Best to take some profits. I am cautious and will continue to be cautious with this share until I see some decent revenue from non McDonalds customers. White Castle is a relative minnow. Indonesia is a possibility for decent growth in users. PLX has had a lot of difficulty in selling their services and I am puzzled by that as clearly McDonalds think it is very good and that in itself should be a good selling point.

Fair enough, they should've signed up more companies I agree. But it takes time for their deals to come through. They are longer sales cycle type deals, not just your ordinary business. For example they were speaking with White Castle from at least March (as it was before Mcd's invested) and only announced it in July.

You have to remember the deal precluded Plexure from working with other bigger quick service rivals and they said discussions had been quite advanced with a few of Mcd's competitors. At that stage they were focusing on the quick service industry, so we can forgive them for that.

Also their sales force had been on the light side until now it seems, so possibly they've just been busy servicing Mcd's and didn't have much time to bring in new customers. However the Super Indo could be promising. Here's hoping they sign up more supermarket customers.

[Justin]

did he mentioned whats the special？

[Checkmate]

Yup, I reckon the worm turned in 2019, it is now a very good looking company (finally, after years of bulls*#t under VMob branding and crap management). I guess there was only one way to go though?

I reckon you guys should have a "Very optimistic" scenario. It seems like all your scenarios have an "organic growth" component. But there is a chance they onboard some more large customers this year and double their numbers. Their offering get's more and more compelling as their tech improves. Their tech could be huge for the marketing departments of any large companies that aren't quite there yet. Hence they are a very attractive proposition for a number of large companies trying to sell their product in a world where consumers are suddenly watching their spending closely.


Balance's comments re customers are a distraction and reflect his bias.

Sure PLX may have been strongly linked to McD customers at one stage. But this will change as other clients grow and PLX's contracts evolve. Here's some pertinent comment from the just released AR.

The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers.

From this we can deduce that future revenues will more accurately reflect customer and usage numbers. Plus with user numbers set to increase from 187mill to 500 mill, there will be increased benefits of scale.


comvita comes to mind , balance rubbished it big time and like plx is one of the best performers this year.


did he mentioned whats the special？
No he just grinned when he said it.. haha.

[Balance]

Disclosure of interest - so who sold into the ramp?

[mfd]

Disclosure of interest - so who sold into the ramp?

I sold about 20% as it was getting a little too large in my portfolio after topping up at 50c.

[Balance]

I sold about 20% as it was getting a little too large in my portfolio after topping up at 50c.

Good on you! 👍

Well done.

[Baa_Baa]

Good on you! 👍

Well done.

Put everyone else on the spot balance, what have you done?

[mfd]

Good on you! 

Well done.

Still very happy to hold the remaining 80%. I might need to lighten up again when it hits $1.50, but that's a problem for later this year.

[Balance]

Put everyone else on the spot balance, what have you done?

Not a thing! Neither hold, buy nor sell. 😊

[Beginnerguy]

Not a thing! Neither hold, buy nor sell. 

So we should disregard your opinion then?

[blobbles]

Disclosure of interest - so who sold into the ramp?

Didn't sell any, is a long term hold for me! Will top up again if the prices retreat severely again, TBH - I really hope they do. Would love them to be sub 50c again. Maybe I should be down ramping? :-D

[sb9]

Didn't sell any, is a long term hold for me! Will top up again if the prices retreat severely again, TBH - I really hope they do. Would love them to be sub 50c again. Maybe I should be down ramping? :-D

Same here too, didn't sell or buy any, if anything would like to buy more if price gets down to silly levels....may be I should join you in down ramp camp as well :p

[Checkmate]

Same here too, didn't sell or buy any, if anything would like to buy more if price gets down to silly levels....may be I should join you in down ramp camp as well :p Me too, i'm young and got time for a long hold to see how it plays out, got a bit of cash to buy more if you guys wanna try get it under 50c again :eek2:
I found this company when it was about 10c in 2017 i think, bought a few thousand worth but sold because i was impatient lol. Not happening again...

[Checkmate]

I'm intrigued that this Balance guy is bashing Plexure because it made a supposed "loss in the second half" while Serko, which it seems he is MASSIVELY bullish on, made a LOSS OF $866,000 in the FIRST HALF and is likely to make an even bigger loss in H2 due to travel restrictions (and likely struggle for the next year or so)... even had to postpone its results till June (must be a mess).
Nothing personal to him, i just think it's a bit ironic...

[sb9]

I'm intrigued that this Balance guy is bashing Plexure because it made a supposed "loss in the second half" while Serko, which it seems he is MASSIVELY bullish on, made a LOSS OF $866,000 in the FIRST HALF and is likely to make an even bigger loss in H2 due to travel restrictions (and likely struggle for the next year or so)... even had to postpone its results till June (must be a mess).
Nothing personal to him, i just think it's a bit ironic...

Whoever looks at profit for SAAS companies have got rocks in their heads...

[Balance]

Same here too, didn't sell or buy any, if anything would like to buy more if price gets down to silly levels....may be I should join you in down ramp camp as well :p

Why not!

This is a plaything for the backdoor boys anyway - pump ‘em up, sell ‘em down.

Looking like it’s headed back to 65c or lower now that the latest rampable news is out of the way.

[sb9]

Why not!

This is a plaything for the backdoor boys anyway - pump ‘em up, sell ‘em down.

Looking like it’s headed back to 65c or lower now that the latest rampable news is out of the way.

Sure, will be waiting for that price or lower with my wallet ready for a top up...

[Beginnerguy]

Why not!

This is a plaything for the backdoor boys anyway - pump ‘em up, sell ‘em down.

Looking like it’s headed back to 65c or lower now that the latest rampable news is out of the way.

What makes you think it'd go to 65c? Just a feeling?

[Balance]

I'm intrigued that this Balance guy is bashing Plexure because it made a supposed "loss in the second half" while Serko, which it seems he is MASSIVELY bullish on, made a LOSS OF $866,000 in the FIRST HALF and is likely to make an even bigger loss in H2 due to travel restrictions (and likely struggle for the next year or so)... even had to postpone its results till June (must be a mess).
Nothing personal to him, i just think it's a bit ironic...

Nothing ironical - excellent point and it’s good you brought this up.

Key is recurring revenues.

The market will look past short term losses as long as a company is building up recurring revenues on a sustainable basis for the longer term.

[Beginnerguy]

Nothing ironical - excellent point and it’s good you brought this up.

Key is recurring revenues.

The market will look past short term losses as long as a company is building up recurring revenues on a sustainable basis for the longer term.

PLexure had 68% recurring revenues and growing.

[Checkmate]

So then why are you so fixated on Plexure's insignificant H2 loss.. while it actually grew revenue by 50%.

[Balance]

So then why are you so fixated on Plexure's insignificant H2 loss.. while it actually grew revenue by 50%.

Because most of the revenues are not recurring.

[Beginnerguy]

Hi balance good insights. When you say 'most' is that referring to the 30% that wasn't recurring?
Cheers

[Beginnerguy]

Why not!

This is a plaything for the backdoor boys anyway - pump ‘em up, sell ‘em down.

Looking like it’s headed back to 65c or lower now that the latest rampable news is out of the way.

As soon as you say 65c you lose all credibility. It's not going to that level unless the markets drop off massively again. Seems like you have an agenda against PLX. Don't own it, can't short it - wonder if it's just a result of you feeling inadequate, missing out perhaps? Your one or two successes don't account for many years of failure. You'd have thought you'd learn your lessons by now... FBU? LOL. You're probably one of the worst investors ever. Think you know everything but in reality knows very little. This type of attitude blocks out the logic behind good investment decisions. I wish I owned SKO (business will take 5 years to reach PLX), FBU (WOW) and SKC (are you kidding)?

[Beginnerguy]

Ok so 30% of revenue being non-recurring is 'most' to you? Seems like you're embellishing the truth against PLX. Funny that.

[Gerald]

Because most of the revenues are not recurring.

" Recurring revenue (representing licence and support fees) increased by $6.990m or 67% to $17.423m, while non-recurring revenue increased by $1.433m, or 22% to $7.828m "

[lctham]

why has the SP pulled back in recent days? is it just profit taking?

We think the long term outlook still looks positive for these guys?

[Beginnerguy]

" Recurring revenue (representing licence and support fees) increased by $6.990m or 67% to $17.423m, while non-recurring revenue increased by $1.433m, or 22% to $7.828m "

Thanks Gerald

[sb9]

why has the SP pulled back in recent days? is it just profit taking?

We think the long term outlook still looks positive for these guys?

My pick is Craig n his excitement mentioning the word Capital raise along with ASX listing, that might putting a dampener imo.

[Beginnerguy]

Could be profit-takers, non-believers. I did expect it to come off at some point. Down almost 20% from highs of 1.06 recently. Can't see it going below 80c IMHO. The chart implies 86c is support if the current uptrend continues.

Remember the CEO said they'd make a forecast in a few weeks, which, based off the comments in the annual report and subsequent media it should be good.

[Beginnerguy]

Plx currently have 170m users and most of them are probably associated with McDonalds.I am a shareholder average buy in @ 32 c so I am very happy with the current share price. I sold half of my holding over the last few months. Best to take some profits. I am cautious and will continue to be cautious with this share until I see some decent revenue from non McDonalds customers. White Castle is a relative minnow. Indonesia is a possibility for decent growth in users. PLX has had a lot of difficulty in selling their services and I am puzzled by that as clearly McDonalds think it is very good and that in itself should be a good selling point.

183m users if you look at the annual report. You make some good points, but let's not forget they had to give up on QSR customers once signing with Mcd's, bar White Castle. I agree they should have signed more deals - they mentioned new 'customers' yes plural, in last year's annual report. I'm pleased with Super Indo, but I did expect more.

The other half of it is, their customers who come on board should be more deeply embedded than the average sale. The longer sales cycle and quite competitive industry is something to be weary of.

All in all, the market cap doesn't justify it's current financial position or potential. Don't believe it should be $2 or anything, but around $1.40 seems about right.

[Checkmate]

why has the SP pulled back in recent days? is it just profit taking?

We think the long term outlook still looks positive for these guys? I believe it is just the general market bringing them down. Also Shareclarity has a DCF valuation of 53Cents... it is posted on the Plexure Ticker for all Direct Broking clients to see when they check the price too...

[Beginnerguy]

I believe it is just the general market bringing them down. Also Shareclarity has a DCF valuation of 53Cents... it is posted on the Plexure Ticker for all Direct Broking clients to see when they check the price too...

I wouldn't pay much attention to shareclarity. For some reason they think revenue growth will crawl to a standstill. They get it wrong 80% of the time. They also have A2 milk at $12, Restaurant brands at $6.50... you get my drift.