Gordon Capital in South Melbourne, Victoria | Consultation agency

Gordon Capital

Locality: South Melbourne, Victoria

Phone: +61 3 9607 1371

Address: Level 9, 440 Collins St 3000 South Melbourne, VIC, Australia

Website: http://www.gordoncapital.com.au/

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25.01.2022 Now that long term distribution has been reconfirmed will Senetas' profit rebound in FY 2020?

25.01.2022 I recently caught up with Altech Chemicals CFO, Shane Volk to learn more about how this company is positioned to benefit from new technologies such as LED lights, electric cars and renewal energy storage battery systems.

23.01.2022 Investing in strategic assets in the export food chain

22.01.2022 I recently caught up with HiTech Group CEO Elias Hazouri.

22.01.2022 My article on Indentitii was published in the latest Reach Markets newsletter

21.01.2022 With HSBC as a launch client, Identitii (ID8) will gain the attention of other banks looking solutions to their multi-billion dollar compliance problem.

19.01.2022 Wingara Ag (ASX:WNR) has announced the sale and lease back of the Austco Polar Cold Storage property, located in Laverton North, Victoria.

18.01.2022 My article on ASX listed PTB published in latest Reach Markets newsletter.

18.01.2022 The GO2 People (ASX:GO2) is pursuing an aggressive, multi-pronged growth strategy capable of delivering annual revenue growth of around 30% over the next three years. These strategies are focussed on geographic expansion of the recruitment and labour hire business, continued strong growth of the building services business and expansion of its soon to be acquired training business. These are supported by strong underlying market fundamentals led by a nationwide boom in infrast...ructure spending and a pick-up in mining industry activity. Having reached an EBITDA-neutral state, and with continued revenue growth moving the business into positive EBITDA territory, profitability is now expected to emerge and grow over the next few years as scale continues to build on the back of a strong corporate culture and a client-oriented value proposition. There is considerable upside in the market valuation over the next few years as the company implements its business plan and delivers on its earnings potential. KEY POINTS Rapidly building scale Sustainable and rising profitability 30% annual revenue growth on track Diversified business mix Aggressive growth profile Quality clients and projects Limited threat from likely increased regulation Pressure on working capital is declining Funding costs expected to fall Highly experienced management See more

18.01.2022 After several years of development, the beta version of the Jaxsta platform was launched in June 2019 providing music fans with the most comprehensive database ...of music credits and the only one with official data directly from the source. Jaxsta Pro, the companys paid B2B subscription product, is expected to be launch in H2 2019. The company listed on the ASX in December 2018 via the shell of Mobilarm. I recently spoke with Co-Founder and CEO, Jacqui Louez Schoorl to discover more about the company, its vision and strategies. See more

16.01.2022 Company transforming acquisition heralds the next growth phase Sapex Group is an industrial services growth stock. The company is completing a major transformational acquisition which will see annual revenue jumping from around A$400K to an expected A$12.6 million in FY 2019. Sapex the leading supplier of temporary ground support (composite mats) for heavy equipment in difficult and unstable terrain in Indonesia. The business is underpinned by long term contracts in the oil... and gas industry with four key operators, Chevron, Talisman (Repsol), Pertamina and SAKA, which will lead to a significant increase in the mats inventory and revenue growth over the next two years. Profit margins are high. Restructuring of its operations, to give it full control over the value chain, will enable it to pursue its growth strategy and to replicate this success in other industries and in new markets in The Philippines and Myanmar. Sapex, which is currently listed on the NSX, is transitioning to an ASX listing, which is expected to be achieved by September 2018. See more

15.01.2022 My article on ASX listed Novita Healthcare was published in the Reach Markets newsletter.

12.01.2022 Senetas (ASX:SEN) is well positioned to participate in the growth of the global hardware encryption market. The US, Asia, European and Middle-East markets represent significant growth opportunities with governments, defence departments and commercial organisations becoming increasingly aware of the risks of cyber-attacks and the integrity of data in motion. The distribution agreement with its partner Gemalto secures access to its global sales, partnering and support location...s, enabling it to penetrate new major markets and gain from cross-selling opportunities. With superior technology, positive industry fundamentals, a robust balance sheet and new products coming to market over the next two years, Senetas remains a strong growth story. The key points for its recently released interim 2018 result were: Revenue rose 10.3% to $10.3m with product revenue increasing 29%, partially offset by lower maintenance revenue. Major customers recommenced ordering following network upgrades as previously flagged. Net profit before tax of $2.4m at the top end of company guidance given in January 2018. Gross profit margin remained strong at 80% and pre-tax margin 23.2% with further improvement expected. Cash on hand $20.6m with no debt provides flexibility for strategic investments. Increased our earnings forecasts for FY18 and FY19. The proposed acquisition of Gemalto by Thales should be positive for Senetas once bedded down. New products such as the 100Gbps encryptor, customised algorithm solutions, virtualised encryption software and cybersecurity awareness to drive growth over next two years. See more

11.01.2022 New products and cybersecurity awareness to drive Senetas' (SEN) growth over the next few years

10.01.2022 Dividend and strategic investment

10.01.2022 Will Veris' (ASX:VRS) profit rebound in FY 2020?

10.01.2022 Another very good result from HiTech (ASX:HIT) with revenue up 15% and EBITDA up 10%. This continues the consistent pattern of growth which has been evident over the past 5 years. The EBITDA margin slipped a little but that would appear to be the only issue with result. Bottom line is that there would appear to be no shortage of Commonwealth government driven technology implementation and management projects. Balance sheet is still debt free with nearly $6 million in cash. Th...e operating cash surplus is effectively being paid out as dividends. At 8 cents per share the annual yield is nearly 7% fully franked after the recent spike in the share price. Since the beginning of July, the share price has jumped from $1.00 to $1.19. Even at this level the 2019 PER is 15.6x and EBITDA/EV is 8.8x. Hardly excessive given the strong history of growth and really strong balance sheet. I assume historic growth patterns will be repeated in FY 2020, but what next? The company has not publicly fleshed out its M&A strategy other than to say it will fit the industry and company culture. I assume that its targets will be in the newer, developing areas of technology where demand is rising sharply in its core market. Again, this would seem to point to cyber security and cloud services. And I would expect any acquisition to offer broadly similar service capabilities as HiTech currently offers being contract management and project implementation. Nonetheless, with about $6 million in cash resources, a debt free balance sheet and access to equity markets, HiTech has the ability to fund a decent sized acquisition which could provide a quantum leap in growth and scale.

10.01.2022 Bringing the vision of personalised oncology to reality

08.01.2022 Invitrocue (IVQ) makes key appointments to support commercial development

07.01.2022 Invitrocue (ASX:IVQ) has released its June Quarter 2018 cash flow report. The key points are; Cash receipts for the June quarter were $266K with FY 2018 cash recepts amounting to $800K. The comparable figures for the prior year were $157K and $708K respectively. The operating cash flow deficit for the June quarter was $1.0 million and $3.7 million for FY 2018. The comparable figures for the prior year were $351K and $1.8 million respectively. In April, the company announced t...he first commercial use of the Onco-PDO cancer screening test. During the quarter, $1.8 million was received from the issue of new shares completing a private placement @ 12 cents per share which raised about $3.3 million. The cash balance at the end of June 2018 was $2.3 million. Invitrocues core proposition is its capability to build a patients own cancer or micro-tumour in its laboratory for testing against approved first line chemo drugs and identifying alternative drug treatment. This test has the potential to markedly improve the effectiveness of cancer treatment with a marked reduction in costs with greatly reduced patient trauma. A major milestone was achieved in April with the first commercial sales of the companys Onco-PDO cancer screening test. This heralds its commercial launch. Invitrocues roll-out strategy is focussed on securing access to leading cancer laboratories for the building of such cancer avatars through research alliances with major cancer research centres in selected markets. By mid-2019, labs are expected to be in operation in Asia/ Pacific and Europe with each expected to quickly reach an average of about 3 to 5 tests per day. First commercial revenues of significance for liver cell tests were achieved in FY 2017 and high rates of growth from liver cells and cancer tests are anticipated over the next few years as further services are introduced and as the client base expands. A hockey stick growth profile is quite possible with a take-off occurring once a critical mass of testing laboratories is in place for the Onco-PDO personalised oncology service. Investor support for the value proposition is evidenced by the companys success in raising new equity at a premium to market price (latest raise was at a 20% premium). See more

07.01.2022 A major strengthening of Traffic Technologies (ASX:TTI) balance sheet, completed in April 2018, was the final element in the transformation of the company which has been underway over the past two years.

07.01.2022 The highlights of the March 2018 quarter for Invitrocue (ASX:IVQ) were the securing of grant funding from the Northern Ireland government to support the commercialisation of Onco-PDO in the UK and other European markets and the screening of first paying patient in Singapore against the Onco-PDO drug sensitivity test for the indication of Colorectal Cancer. Invitrocue has successfully applied its human liver technology for testing new compounds for pharmaceutical companies in ...pre-clinical drug development studies. In recent months, the company has extended this capability to build a patients own cancer or micro-tumour in its laboratory for testing against approved first line chemo drugs and identifying alternative drug treatments. More importantly, the company has already benefited from clinical validation in partnerships with several government cancer research institutions and recently announced its first group of paying patients. For investors, this could mean an accelerated pathway that will help Invitrocue in tapping into an emerging market for personalised oncology which is becoming increasingly common in developing treatment strategies for cancer patients. Invitrocues roll-out strategy is focussed on securing access to leading cancer laboratories for the building of such cancer avatars through research alliances with major cancer research centres in selected markets. By mid-2019, five labs are expected to be in operation in Australia, Singapore, Hong Kong, Northern Ireland, Japan and Germany with each processing on average about 3 to 5 tests per day (average annual rate of ~1,000 each), with capacity to increase beyond 10 tests daily. First commercial revenues of significance for liver cell tests were achieved in FY 2017 and high rates of growth from liver cells and cancer tests are anticipated over the next few years as further services are introduced and as the client base expands. A hockey stick growth profile is quite possible with a take-off occurring once a critical mass of testing laboratories is in place for the Onco-PDO personalised oncology service. Group revenue jumped from $83K in FY 2016 to $741K in FY 2017 as revenue primarily from liver cell tests for pre-clinical drug trials gained traction. Revenue is expected to exceed $2 million in FY 2019 as cancer cell testing builds momentum. Revenue from Onco-PDO, alone, could be around US$15 million in FY 2020 with five laboratories in operation. See more

03.01.2022 Adding a WOW factor to the digital device user experience

03.01.2022 Research update on Wingara Ag (ASX:WNR) following the release of its FY 2019 results.

01.01.2022 My article on WhiteHawk (ASX:WHK) was published in the most recent Reach Markets newsletter

01.01.2022 Although Babylon Pump and Power is relatively new business it has carved out a niche in servicing the mines in WA. I recently met with CEO, Michael Shelby to see how they are travelling.

01.01.2022 IODM (ASX:IOD) reported a 122% increase in FY 2019 revenue to $0.49 m and 25% increase in the operating loss to $1.1 million. Both key business indicators, being invoices processed and invoice value, rose sharply of low bases. The operating cash burn amounted to $1.1 million in FY 2019. Cash balances at the end of June were $132K. About $625K in new capital was raised in June so current cash balances are less than $700K. The company is now building traction and is primaril...y focussed on commercialisation and business development. Having established a foothold in Australia it is now extending its operations to the UK and Western Europe. Its great that traction is building but scale is still very, very small and evidence of the companys potential is still lacking. More particularly, the company appears to lack the financial resources to fully ramp up sales and marketing. More capital will be required just to cover cash burn in FY 20 let alone boost business development to ratchet up revenue growth. The share price has jumped for around 2 cents at the beginning of 2019 to a current level of 7.5 cents. Market cap is currently $36 million. There are some big believers and it would seem some high expectations. But without considerably more financial resources, the company and stock may disappoint. The company reports that annualised revenue is currently about $650K. It needs to be well in excess of $2 million by this time next year to provide confidence that expectations could be realisable. GENERAL ADVICE WARNING: The information herein is only of a general nature and does not constitute personal financial product advice and no recommendation is given or implied. Therefore, before acting on the advice readers should consider the appropriateness of the advice with regard to their particular objectives, financial situation and needs. DISCLAIMER: Although every attempt has been made to verify the accuracy of information contained in this Report, Gordon Capital Pty Ltd and InterPrac Financial Planning Pty Ltd make no warranties about the accuracy or completeness of any advice or information. DISCLOSURE: This publication has been prepared by Gordon Capital Pty Ltd, as Authorised Representative of InterPrac Financial Planning Pty Ltd, Australian Financial Services Licence No. 246638. The registered office of InterPrac Financial Planning Pty Ltd is Level 8, 525 Flinders St, Melbourne, VIC 3000. At the time of this report, the author nor any associated parties held shares in IODM Limited.

01.01.2022 Global leader in Layer 2 high speed network encryption poised for strong growth over next 2 years. Since our last update in May 2018 Senetas has made three significant announcements to the market, of which the key points were: Senetas CV1000 virtualised encryption development stage completed in preparation for global market launch by Gemalto. The launch of the virtualised CV1000 encryptor by Gemalto represents a major milestone for Senetas as the first virtualised encrypto...r providing strong encryption for large scale multi-layer networks that carry increasingly sensitive data. There is strong customer interest in the product across all geographies with revenue expected to flow from FY2019. The company has entered into a technology partnership and distribution agreement with ADVA which should be revenue producing in FY2019. This technology partnering and product distribution agreement enables Senetas to embed its high-speed networking encryption technology into ADVAs industry-leading virtualisation technology, Ensemble Connector. For FY2018, Senetas expects revenue to be between $19.0m and $19.1m and profit before tax (excluding write-down of investments) to be between $5.4m and $5.8m (FY2017: $5.3), below our forecast of revenue $21m and profit before tax of $6.6m. The carrying value of $1.4m in DeepRadiology written down to nil. Cash at 30 June 2018 increased 15% to $23.2m ($20.1m). New products and cybersecurity awareness to drive growth over next few years. See more