Disappointing result by Damstra. Growth of 20%pcp but were aiming for 32-40% blaming COVID and the loss of some revenue from one of their larger client Newmont. Had newmont been taken out of the equation growth would have been 31%. Newmont remain a client but the contract moving forward will be changed. CEO has mentioned this is relatively new news occurring only in recent months.

see @pudawocky for announcement results.

revenue guidance now been revised to $35.9-38.9 mil with revenue growth of 35.9-38.9% which is essentially the same and not upgraded as I was hoping following the TIKS acquisition which adds $4.1mik

to take some positives

1. gross margins up to 77%
2. john Holland and NBN deals. The John Holland deal in particular is good news they seem to have expanded the deal across their entire operations.
3. North America market pipeline appears key with CEO currently situated their to hopefully do some deals
4. UK commercial opportunity with a major construction company is still progressing. I was hoping this would have been announced by now but the CEO reports he is comfortable with where this is currently positioned. This deal is key for me to meet expectations. This has been delayed due to COVID.
5. Some progress in other deals in healthcare in US across 52 states. Management are suggesting that deals are near but confirmed commitment is slow which is somewhat concerning.
6. Pipeline 60-70 mil in aust 20-30 mil in US. They believe pipeline should grow 100%+ YonY
7. management are shareholders and aligned with shareholders.

DISC- held IRL & SM

Damstra acquired TIKS Solutions for a consideration of $18m consisting of $2.5mil cash on completion of acquisition and an issue of shares of $12mil at a deemed issue price of $1, plus $3.5m of cash deferred for 12 months representng an acquisition multiple of 4.4x FY21 revenue.

TIKS CEO and founder will pleasingly take majority  of his 67.5% shareholding in TIKS in DTC shares excrowed for 24 months and will join the executive team. This positevely indicates to me he believes DTC has a good future and is undervalued. 

This acquisiton looks really sensible, will enable DTC to enter new areas including new international markets and new verticals in facilties mamagement, aviation and rail which will also provide cross-sell opportunities. 

TIKS generatied audited revenue of $4.14mil in FY21 and was free cash positive. EBITDA contribution is expected to be positive although inmaterial to DTC forecast EBITDA for FY22.

DISC- I hold IRL and Strawman