https://www.nzx.com/announcements/396165
No it was mentioned here.
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https://www.nzx.com/announcements/396165
No it was mentioned here.
Ok, they said in August "EBITDA, adjusted for non-cash employee share charges of NZD$5.2 million, is expected to be a profit of NZD$3.7 million for the year."
Now in September they said "business now profitable"
... so they've gone from 'expected' [this FY] to 'now' [in September].
That's good.
Agree though with your other comment, more quality customer announcements would light a rocket under the share price.
Any one attending via the tube of the AGM today?
I wasn't there, but I did see this mentioned before and I forgot to mention it. In short Task division may do better than expected.
Profitability growth:
Forecast $3.7m adjusted EBITDA1 understates the
run rate profitability of TASK Group due to the
transformations taking place during the FY23 year
The Bell Potter presentation was pretty much repeated, so there wasn't much new information presented; they came across as confident in doing the numbers this FY; the CEO did admit that they're very focused on landing the guidance numbers which he volunteered that profit guidance may be "conservative"; and in answer to a shareholders question, they confirmed that the Plexure shake out to restore profitability included pulling out of the Grocery sector, so SuperIndo, and the Chair added that the margins on doing business in Indonesia were thin. Under questions the CFO admitted there are outstanding receivables due to the Ukraine war, but seemed confident they would be paid. There was a few references to the growing cash pile and "investment opportunities", pending the new Board looking at strategy going forward. The CEO acknowledged focus on winning more customers and deepening business with existing customers to grow the business.
Overall I am very impressed with how quickly they have transformed the company following the Task acquisition (reverse takeover). From a serious loss and unprofitable major client, back to a combined $50m+ revenue and profit forecast this FY. The combined technology offering is undoubtably superior. The move to an ASX primary listing and courting the Aussie brokers is encouraging.
Interesting they pulled out of SuperIndo. Not enough margin? Surely like maccas, Plexure must have given them the option of paying more? Or maybe they didn’t go into detail.
Did they go into detail which business was struggling with the outstanding receivables?
Anyway they seem on the right path to change and generally I’m very happy.
Thanks for the reporting.
They didn't go into any detail, but there's no reason I can see to disbelieve the CEO and Chair, that the Indonesia grocery business wasn't profitable enough (or may have been making a loss). Anyway, they've cut the grocery sector and are focusing solely in the four verticals; QSR; Food Service; Stadium & Events; Gaming & Casino.
No they didn't. I'm not sure whether Plex was in Russia or Ukraine McD's, but in Russia McD sold the whole franchise and moved out. McD's are reopening in Ukraine now, after 7 months. The receivables on the balance sheet at 30/9 2021 were $5.5m, but that was a whole year ago so not a reliable indicator. CFO seemed confident the money owing would be recovered.
They sure do have an impressive customer list.
Attachment 14178
The reverse takeover is almost complete as shareholders unanimously voted in two new board members, "to undertake an orderly Board renewal process", the Chair steps down to non-exec member. Four previous board members resign. This is much more satisfactory than a shareholder led Board spill which they probably saw as a possibility had they not proactively addressed this.
The new Constitution has been voted in by shareholders (essentially the same as was proposed for the ASX IPO). Now only a couple of steps left to complete the takeover; rename to TASK Group Holdings; and ASX approval of primary listing with NZX as foreign-exempt. I expect a concerted investor/fund/broker marketing campaign to accompany the ASX primary listing.
We are almost at the FY22/23 half-year point, so with six months trading on the books it will be interesting to see the half year Report in due course; which I expect will confirm the path to revenue guidance and a profitable year. The previous Chair, new Chair, CEO and CFO confidence in guidance at the AGM (they will already know the 6-month results), with the CEO even volunteering guidance may be "conservative", suggests a very successful turnaround and annual result by March 2023.
Task Group Holdings, ticker TSK trading today. Primary listing on ASX, foreign exempt on NZX.