Deep dive into COSOL.... This is my first deep dive into software services even though I have a IT background so I may get a few things wrong.

Background

COSOL business is providing solutions and services for organisations looking to optimise or modernise their enterprise asset management systems. COSOL business cover the following areas:

Advisory services

Advisory , Implementations, Upgrades, Support of EAM (Enterprise Asset Management) platforms including Hitachi ABB Ellipse, IBM Maximo and SAP.

Technology solutions

COSOL has their own proprietary software solutions that add functionality and optimise existing EAM platforms such as RP Connect, Evergreen and Copernicus which is now combined as their EAMaas.

RP Connect assists with interfacing and migrating legacy systems to modern enterprise asset platforms.

Evergreen helps optimise implementations and upgrades of EAM/ERP environments – more specifically with Hitachi ABB Power Grid.

Copernicus assists with deployment and management of EAM / ERP for the mining sector

Managed services.

EAM and non-EAM Application Management Services, Desktop, Datacentre, Telecommunication and Cloud Management Services

Group revenue

48.3M +44% (of which 32% is products and services, 36% professional services and 32% support services). There is no breakdown on how much revenue is recurring, but they seem to be relying on their recent acquisitions to make revenue more recurring.

EBIT

8.1M +40%

EBIT Margin

Quite small at 16.7%

NPAT

5.5M +38%

Market cap

As of FY22 results $96m

Div 1.92c EPS 4c

Acquisitions –

Clarita (2021) - specialise in IBM Maximo solutions for EAM/ERP

WMS (2022) - specialists in EAM solutions for the mining sector

Client list:

Large variety of blue chip clients as seen below.

Significant contract wins which give detail into some capabilities:

In summary COSOL appears to be a technology enabler but they have a proprietary set of technologies and specialists to assist organisations in modernising and extracting extra features from their EAM/ERP environments rather than having their own standalone solution that competes with other companies such as IBM. This "add-on" enabler model may explain the current discount on the share price.

[held]