I listened to the half webinar from Stealh and walked away thinking that they really are a quality management team, althought the scottish accent on the CFO was a bit thick for me to catch every word.@Strawman has given a good summary but a couple of things that jumped out to me. I didn't realise that Mike was the original preo IPO founder of this buisness.
The potential dividend (end FY2024 earliest) will partly be enabled through the repurposing of the interest/repayments that they are currently paying off from the CBA facility. They are paying $410K/qrt which will be paid off by the 30 June 2024. This in addition to the increasing revenue and margin will underpin the dividend. Did make the comment that they have been prudent capital allocators to date and this is compatable within that framework. They don't see a problem with balancing the capital required for continued growth, debt repayments and shareholder returns through dividends.
Also talked about them still being a growth company and how interest repayments are increasing which is not the best use of shareholder funds. I got the impression that if the SP goes for a run they will look to raise capital to pay down their debts. I don't think this is a bad strategy, depending on the raise price off course. A raise would probably coincide with them taking on an another acquisition but I would be very surprised if this happened before 2024.
What does impress me about the managemeam is that they understand what their end goal and how they are steadily executing their plan to get there. This is a company that understands it's niche. While the SP doesn't currently reflect it they have built a very solid base. If we compare where this company is today relative to where it was when @DrPete did his video a few years ago, it really is chalk and cheese. I am increasingly confident that their margins will expand and the bottom line will improve.
