Originally Posted by
Balance
Busy with home renovations - messy & dusty & expensive!
What do they say about 'A journey of a thousand miles starts with the first step!'?
There is no question in my mind that PLX's business is labour intensive and therefore, a high cost to revenue ratio proposition.
How do we know that?
Well, the company boasted of adding on 60 staff in the year up to September 2019 and required another 50 to service the contracts PLX had won. Assuming each staff costs $100k - that's an additional $5m to be added to the staff costs - on top of the $6m already added to the wages bill in 2019. Not counting all the other costs associated with adding on staff.
What contracts had PLX won to that point? There's McD & White Castle.
Does not sound like a Serko or Xero type software business to me where the basic platform is in place & generates recurring & annuity incomes.