@Bear77 , @DrPete I hope this answers some questions

I've just posted a valuation for Austco. Overall it looks strong. But I'm relatively new to this company. So I have a few questions for the Austco old-timers and wise folks.

Since June 2024 the Return on equity is: 20.28%, Net profit margin: 12%, :

1/ Why did revenue start to grow in 22/23 after many years of stagnating?

2/ Who are Austco's main competitors?

3/ Who is John Bennetts and why does he own 16%?

4/ Who is Robert Grey and why has he been aggressively offloading shares?

5/ Is there a reason Austco uses the language "revenue from customers" rather than just "revenue"?

6/ How comfortable are you with the strategy of acquiring resellers, given the resellers aren't entirely

7/ focused on reselling just Austco but also have other unaligned sources of revenue and profit?

8/ is the 'Net profit Margin' at 12% because of a contract win?

1. Why did revenue start to grow in FY22–23 after years of stagnation?

Austco’s revenue took off thanks to two main factors:

• Organic growth—especially in North America and Asia—grew revenue by about 17% or ~AUD 7 million.
• Acquisitions—Teknocorp (Nov 2023) added AUD 6.5 million and Amentco (May 2024) added AUD 2.7 million. Combined, that delivered a 39% jump in "revenue from customers" over FY23 to FY24.austcohealthcare.com+1Listcorp

2. Who are Austco’s main competitors?

Sources list a range of competitors depending on perspective:

• Craft.co: Ascott Sales Integration, Rethink Medical, MOMI Brands, and RudolfCraft.co
• CB Insights: 9Solutions, Schweighofer Fiber, MatchMD, West-Com Nurse Call Systems, plus othersCB Insights
• Tracxn: Names athenahealth, CareCloud, and Notable among the top rivalsTracxn+1
• For global scale, Austco’s market share in healthcare comms is relatively small—under 1%, compared to giants like Cerner, McKesson, and athenahealthEnlyft+1

3. Who is John Bennetts and why does he own ~16%?

According to MarketScreener, John Bennetts holds ~15.63% of Austco’s shares, making him the largest individual shareholderMarketScreener. I couldn’t find more detail on his background or motivations for his stake.

4. Who is Robert Grey and why has he been offloading shares?

Robert Edward Grey is Austco’s long-time founder (founded in 1986) and has held executive and board roles. As of a 2024 update, he owns ~14.51% and is no longer in an executive roleMarketScreenerMarketScreener UAE EmiratesTracxn. The share reductions may reflect typical founder portfolio diversification or liquidity needs, though no explicit rationale was found.

5. Why does Austco use “revenue from customers” rather than just “revenue”?

This phrasing likely distinguishes recognized sales from existing contracts still to be fulfilled (“unfilled contracted orders”)—which stood at a record AUD 50 million as of FY24austcohealthcare.com+1. It clarifies actual billing versus future revenue potential.

6. What about the strategy of acquiring resellers who also sell other products?

Austco’s strategy appears to intentionally target resellers with established regional reach. Acquisitions like Teknocorp and Amentco not only added revenue but also embedded Austco’s offerings deeper in their networks—allowing revenue synergies while maintaining reseller autonomyListcorp+1austcohealthcare.com. While reseller loyalty might not be exclusive, Austco seems focused on aligning them through integration and software upsell opportunities.

7. Is the 12% net profit margin due to a specific contract win?

The net profit margin of roughly 12% in FY24 was up from ~5.4% in FY23—reflecting a strong combination of organic growth, M&A gains, operating leverage, and tax benefits from recognizing previously unrecognized tax lossesYahoo Financeaustcohealthcare.comListcorp. There’s no clear indication it hinges on a single contract.

Summary Table

QuestionSummary1. Revenue growthOrganic markets + two acquisitions2. CompetitorsIdentified across Craft, CB Insights, Tracxn; includes both med-tech startups & large EMR players3. John BennettsLargest shareholder (~15.6%), little else publicly known4. Robert GreyFounder, former director; now holds ~14.5%, likely managing personal stake5. “Revenue from customers” termDifferentiates recognized income from future contract pipeline6. Reseller acquisition strategyExtends reach and integration without demanding exclusivity7. Margin improvementDriven by scale gains, deal integration, and tax accounting — not a single contract win

Disc: S.M