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#Business Model/Strategy
stale
Added 2 years ago

Atturra is recent addition to asx IPO last year in December at $0.50.

Atturra is an Australian technology services company that was formed in 2015 through the merger of five specialized IT services brands. The company provides a range of IT services and solutions to clients using transformative technologies and business applications to enable digital transformation. Atturra has a strong presence in Australia, with offices in multiple cities, and also has a presence in New Zealand and Singapore. The company has grown both organically and through acquisitions, and has established partnerships with major technology companies such as Microsoft, Software AG, Boomi, and Smartsheet. Atturra's growth strategy includes focusing on high-growth technologies and industries with high barriers to entry or no clear market leader. The company plans to grow both organically and inorganically through its growth pillars. 

Attura has recently conducted a capital raising for $25M at $0.85, with the funds to used for future acquitions. Atturra recent acquitions include Mentum Systems (August 21), Kettering Professional Services (March 22) and Haynes Information Systems & Communications (June 22).

Atturra engages over 700 consultants, IT and support personnel in Sydney, Melbourne, Brisbane, Canberra, Adelaide, Perth, New Zealand and Singapore. This includes over 200 security cleared personnel that enables Atturra to undertake work with Federal Government, Defence and National Security organisations. 

Competition

Consulting: Accenture-Avanade, Capgemini, Deloitte, Ernst & Young, KPMG and PwC. 

IT Services: Cognizant, DXC, Fujitsu, HCL Technologies, IBM, Infosys Technologies, NTT, Optus Enterprise, Tech Mahindra, Telstra Enterprise, TCS and Wipro. 

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#Bull Case
stale
Added 2 years ago

Considering the last update ATA has held up pretty well

Not sure what the bull case is? But I did see a few on twitter compare this to the likes of Data#3.

Unfortunately I don't hold thinking it may be fairly valued at the IPO price. But markets move in mysterious ways.

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Valuation of $0.600
stale
Added 3 years ago

December 2021 IPO. Technology services company (picks and shovels for SaaS). Very high insider ownership. Formed in 2015 as amalgamation of five IT services companies. Has since done another five acquisitions, including Galaxy 42 (TechnologyOne expertise). Operates along east coast of Australia, with satellite offices in Singapore and NZ.

Like:

  • no selling of shares during IPO.
  • Chairman and another non-exec director not taking remuneration
  • 800m shares gifted to employees during offer
  • has come to the market at a realistic valuation
  • provided detailed FY22 guidance
  • is profitable
  • balance sheet not awful (plenty of cash - likely to make acquisitions)


Not so much:

  • has to continually renew revenue
  • top 20 customers account for 62% of revenue
  • 45% of revenue from Feds/Defence (Feds keep threatening to reduce reliance of third party consulting (but never do))
  • non-controlling interest exists


Other:

  • Jonathan Rubinstein is a non exec director - famed for what he did for Infomedia as CEO/MD until falling foul of the board recently and getting the Lemonade and Sars. Must enjoy a challenge as was recently appointed CEO of Nuix.


Valuation:

  • 20x FY21 earnings. Looks better on a DCF but with so little history that's not worth much.


Bottom Line:

  • If I wanted to pay 20x earnings for a IT services microcap I'd own Hi-Tech (ASX:HIT) instead - long history of consistent growth, 50% ROE, intent to keep paying dividends...
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