Lots of M&A activity at the moment with today's announcement by Proptech being notable for it being at a 131% premium to the previous share price. It looks pretty certain too with no due diligence or financing conditions and a $934,000 reciprocal break fee.

There aren't many positions I hold that I wouldn't give up for a 131% return.

[Not held]

1H results released after market close last night:

The good:

• Strong revenue growth
• Growth by both acquisition (59% of growth) and organically (41% of growth)
• ARPU grew by 23%
• Operating cashflow positive and this has been improving each half since H1 FY21

Not do much:

• Expenses growing significantly faster than revenue
• Results in slide into net loss (although note cashflow positive above)
• Doing a lot of acquisitions and is hard to tell whether they are loss making duds or adding material value

Overall:

Interesting business. Key selling point for me is quality of management, including the Chairman who is ex-CEO/MD of REA. I've been tempted by it a number of times but never gotten the conviction to mash the buy button. I haven't seen them give any sort of outlook or medium term targets and would feel a lot more comfortable if they shared some specifics of what this should look like in 3 years. It would also give us something to measure them against.

[Not held]