Name one call for any company anywhere in the world at any time in recorded history where management have said they are not confident.
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Different set of business but SKO has plenty of cash in the kitty, for the last 5 years they are on the ball, they said what they going to do and they achieved every major milestone.
80m in the kitty, another year of cash burn in development bring it to 50-60m level before they are profitable and cash flow positive.
by the time they are in the black they have 50m in the kitty and SKO has much more leverage earning model, once the development is done and bed it down and once achieved neutral cost based,
every extra booking is straight to the bottom line
Some reasonably big trades after the meeting …good sign
Market confident in managements confidence
Great to re-cap on the FY23 results which were truely outstanding, signalling the turnaround success and return to profit. The Board and management expressed confidence (like when are they ever not confident) but they came across as both relieved it's working out, and optimistic for the future, and they have a massive vested interest in the Houden family majority holding and other directors shareholdings, plus the new resolution on Dan and Dean's entitlements.
Nice that they acknowledged the huge contribution of Plexure and McD (vs TASK revenue) to the revenue line, but also alluded to the key customer risk that goes with that. Signing up McD's for another 4+ years, profitably, is huge. Also intrigued that at least two questions were about their competitors, and their answers unwittingly acknowledged how difficult it might be winning big new business. Customers are "sticky", ergo it's hard to win a new big customer, but also easier to retain the customers they've got.
No lollies dished out though, no guidance, no new customers, but admittedly they had a big agenda to get through and all resolutions passed. (Gee there's some seriously dumb questions, it's almost embarrassing hearing them). The only resolution I didn't support was the move to ASX. I don't think it is necessary after already having the primary listing on ASX. Anyway, that's a done deal now, pending IRS decision, as that resolution passed. I'm going to have to have a talk with my tax advisor as I'll be well over the $50k FIF tax threshold.
Good to see the SP hold and up a couple of pips, but there's a lot more sell side than buy side (on NZX). Patiently waiting for guidance and some good new customer news. I feel comfortable with my holding and confident that these new Oz owners and director/manager are very focused on running and growing a profitable business.