Not appearing like any sellers at 0.40 finally, even after red day in the states. Positive sign SP has found it's floor. Charts starting to look more weighted on the buy side.
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Not appearing like any sellers at 0.40 finally, even after red day in the states. Positive sign SP has found it's floor. Charts starting to look more weighted on the buy side.
A win to end the week..
https://www.nzx.com/announcements/384132
TASK continuing a great run of new deals and customer expansions, signing up Sydney Cricket Ground (SCG) and the new Sydney Football Stadium (SFS) precinct.
The customer is Venues NSW, they are a NSW Government agency incorporated under the Sporting Venues Authorities Act to manage a portfolio of sports and entertainment venues, including:
- Stadium Australia
- Sydney Cricket Ground
- Sydney Football Stadium
- Bankwest Stadium
- McDonald Jones Stadium
- WIN Stadium
- WIN Entertainment Centre
- Newcastle Entertainment Centre and Showground
Note the quote from the announcement "... The decision was bolstered, not only by TASK’s reputation as an industry leader, but also by the benefits of streamlining technology efficiencies gained by Venues NSW implementing TASK at all their other stadium venues in the state."
Less than a month ago 17 Nov, Plexure advised deals with:
Compass Group – one of the world’s largest foodservice groups and a customer of
TASK in New Zealand, has contracted to roll out TASK across Compass’ operations in
Australia;
Gloria Jeans – TASK has won the contract to provide a full solution for Gloria Jeans
operations (in excess of 50 stores) in the United States;
Sky Stadium – has contracted TASK to provide their transaction platform for the
stadium, with rollout completed by early next year;
Bakers Delight – went live in October with TOLO which it is rolling out region by region.
All New South Wales stores are now online;
Starbucks – which currently utilises TASK POS, has now contracted to TASK to drive
the Starbucks app across all stores in Australia;
Franchised Food Company – which includes Cold Rock Ice Creamery, Healthy Habits
and Pretzel World, has completed the roll out of TASK which includes POS, loyalty and
TOLO;
Retail Food Group – driving increased transaction volumes via TOLO and uber eats
integration activations across multiple brands;
Hawkesbury Racing Club – has implemented TASK across its operations; and
Pita Pit – extension to the Plexure contract to include the full TASK technology stack,
including the addition of POS and kiosk services, kitchen video, digital signage, third
party delivery aggregations (e.g. uber eats), online ordering, loyalty and mobile app.
It would be a rare thing for a technology company announcement to include revenue or profit guidance from a new contract. One thing we do know is that the merger acquisition of TASK was underpinned by confidence in the TASK 'pipeline' and projecting TASK revenues to over double in the current FY. The succession of new deals and customer expansions announced since the merger would indicate that confidence is well placed.
From the Simmons Report pre-merger, a TASK 2022 Revenue Forecast was provided. Note the emphasis on converting the "pipeline" to over double previous years revenue. TASK "gross margin Gross margin has ranged between 52% and 58% in the past 3 years" and included in the principle assumptions "gross margin increasing from 53% in 2021 to 63% in 2031, reflecting the increased mix of higher margin software revenue" and "EBITDA margin increasing from 18% in 2021 to 46% in 2031"
"2022 Revenue Forecast
The forecast for the 2022 financial year is for a substantial increase in revenue by
A$15.0 million (123%) to A$27.3 million.
The forecast increase is primarily driven by the expected conversion of a substantial
pipeline of opportunities. The sales pipeline is largely based on opportunities which
are either closed and in deployment, near-close or in active discussions.
A significant focus has been placed on the quality of the sales pipeline in Plexure’s
and PwC’s due diligence review of Task.
Achievement of the sales pipeline is dependent on a number of factors including
converting opportunities, timing of sales and length of deployment (particularly
impacting SaaS).
Forecast 2022 revenue consists of:
• A$10.9 million of recurring revenue from existing customers:
− software – A$8.0 million
− hardware – A$0.5 million
− services – A$2.4 million
• A$16.4 million of new pipeline revenue:
− software – A$2.7 million
− hardware – A$10.8 million
− services – A$2.9 million.
No TOLO revenue is included in the forecast."
These are not my 'revelations'. One would think Plexure are supremely confident to publish revenue forecast from the Simmons independent advisors report (drawing on PWC due diligence of TASK) during the merger acquisition, then issue formal revenue guidance late August, and then reaffirm revenue guidance mid November.
30 August 21
"Market Announcement – Plexure Revenue Guidance
Revenue Guidance
Following the recent announcement of its intention to acquire Task Retail Pty Limited of Australia and
its global subsidiaries (subject to shareholder approval), Plexure Group Limited (NZX/ASX: PX1),
wishes to confirm its revenue guidance of NZ$45 to NZ$47 million for its financial year ended 31
March 2022. This includes 12 month revenue for Plexure and the statutory 6 months of Task
revenue, assuming a transaction completion date of 1 October 2021.
Proforma Revenue
The combination brings together two companies operating on different financial year cycles. To
correctly reflect the forward value being attained by Plexure through the acquisition of Task, the
combined FY22 forecast revenue on an annualised basis is NZ$59 million. This is comprised of
Plexure’s forecast revenue for the financial year ended 31 March 2022 of $NZ30.3 million and Task’s
forecast revenue of NZ$28.7 million for the financial year ended 30 June 2022."
___________
17 November 21
"Plexure Group Limited (NZX/ASX:PX1) (Plexure) wishes to confirm that its previously
advised revenue guidance for FY22 of $45 – 47 million remains in place."
And subsequently Plexure have announced 11 new deals or extensions.
Since the date of the merger acquisition being agreed and cap raise completed, PX1 SP is down 36% to bargain basement price of $0.42 at Friday close.
Agreed. Seems many investors haven't really allowed the benefits of TASK to be realised. Likely more value investors/bargain hunters will take advantage of the current greatly reduced SP 35% discount. We topped up when bottomed at 0.40. More good news in first quarter 2022 SP will rally.
Well done Baabaa and max ......your efforts have made PX1 top of the leaderboard today .....the star of the NZX
Good stuff
Down 40% and topped up another 25% at the bottom, TASK the savior to PX1 or the other way around?
Review of todays NZX action:
However, Plexure bucked the trend and climbed 9.5% to 46 cents in the day’s biggest climb.
Investors on share forums may have driven the rise, reacting to the news that newly acquired Task had won a contract to install its transaction management platform in Sydney’s cricket and football grounds, which was announced late on Friday afternoon.
Solid close last eve on ASX at AU 45c. Might see it get into 50c range here on back of strong US markets overnight.