IKE - IKE GPS Group

[Left Field]

FY 23 updates by CEO and MD in this presentation for the IKE AGM today

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/399694/380138.pdf

- Q1 FY23 Revenue up 162% on pcp
- 1H FY23 Revenue estimated to be up 162% on pcp
- No mention of projected FY 23 NPAT at this stage .....maybe in Q & A later today.

Early days but encouraging signs. Dare I say, some potential tail winds for IKE in Florida currently.
Go IKE.

[lorraina]

I do not know whether the comprehensive loss reducing from -$8,465,000 to -$7,906,000 is reassuring or not.?

[Left Field]

Comprehensive loss is ssooo yesterday.

IKE did well to strengthen their Balance Sheet, Cash on Hand now $24 mill with no debt..... Revenue expected to double in FY23 to circa $30 mill.

Nice to have a company actually earning $USD these days. Onwards and upwards.

ps just listened to AGM Q & A's...... v positive (as you would expect) .....next update on customer wins and cash flow positivity etc etc due mid Oct. (today was last day of 1H FY23 reporting.)

[lento88]

I too listened in on the agm (solely for the q&a as the presentation slides had already been posted).
About a dozen qns from the floor, generally well answered by the ceo Glenn Milnes, but one qn that perhaps stood out, inter alia, was one enquiring re Ike's competition in nth america. Glenn mentioned 2 that had a similar MO but which had both been recently bought out under 'lucrative' terms. Interesting....

[Left Field]

Naaaice - market seems to like the FY23 projections.....SP up a welcome 12% today,  ( despite NZX down approx 2%.)

[Left Field]

TA looking favourable after last weeks FY23 update (Cash on Hand now $24 mill with no debt..... Revenue expected to double in FY23 to circa $30 mill.)

Market Screener estimates IKE currently trading at around 4x's FY23 revenue.

SP should climb above .90c this week, but then again the market is fickle these day's.

Another favourable update in mid October (alluded to in the CEO's Friday comments) could see the SP firm above $1.00.

A glimmer of hope in a turbulent market? Who knows?

[Left Field]

Made it to 91c today. Up 23% in 4 weeks and up 44% from 12 mnth low.

I suspect more good news needed for the SP to hold above $1.00

Looking forward to the next update.

[Left Field]

Latest update out for 1H FY23.... Got to love it.....Revenue up 170%on pcp.  Gross Margin up 128% at 53%. Go IKE!

https://www.nzx.com/announcements/400713

Highlights for the quarter:

� Positive cash flow was ~$2.2m in the Q2 FY23 period, and was ~$1.1m positive in the 1H FY23 period, evidencing the operating leverage in the business.
� Cash and receivables as at 30 September 2022 grew to ~$29.3m, comprised of $25.5m cash and $3.8m receivables, with no debt.
� Revenue 1H FY23 of ~$15.4m (+170% vs pcp).
� This outturn is ~$0.4m above the top end of the range forecast.
� Within this, recurring Subscription and reoccurring Transaction revenue was ~$13.6m (+183% vs pcp).
� Gross margin in 1H FY23 of ~$8.2m (+128% vs pcp) representing a 1H FY23 gross margin percentage of ~53%.


Should head north of $1.00 in the not too distant future... SP value at $1.50 according to some.

[winner (n)]

Pretty good eh leftie ...even cash flow positive

Thought I better say something to keep you sane ....talking to yourself not good practice

[Left Field]

Pretty good eh leftie ...even cash flow positive

Thought I better say something to keep you sane ....talking to yourself not good practice

LOL....yep "none so blind as those who cannot see..."

(Seems everyone else backed OCA  )

[Forrestdun]

Makes up 14% of the portfolio, they have certainly grown revenue consistently over the last few year and with further clients hopefully the future growth continues!!

[Left Field]

Over on the other channel Rawz says;

"Great update. One may even say its fantastic.

So they will do about $37.5m in revenue FY23 with upside of $39.5m. 134% UP on FY22 on the lower end. During a recession/ downturn thingy.

And that is while management are focused on costs and maintaining the 'fortress balance sheet'.

I would be happy to pay 5x revenue for this given the amazing growth.

FY23 Rev
$37.5m= Target SP $1.18
$39.5m= Target SP $1.24 "

Say no more,(and he didn't even mention the $USD tail winds!) 

[Forrestdun]

Director holding shares, always a good sign. Wonder if they mucked up the disclosure or if the purchase was in Feb.
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/400771/381453.pdf

[Left Field]

1HFY23 out...... very impressive result.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/IKE/403197/384584.pdf

[Left Field]

Nice to see IKE in Bell Potter's 2023 picks with a target SP of $A 1.21 (approx $NZ 1.30)


"IKE delivers operational efficiencies within Utilities and Communications companies and related Engineering firms by replacing legacy processes with hardware and software solutions.

In addition to posting 1H23 revenue growth of 169.8% vs. pcp to $15.4m, which was roughly equal to its full year FY22 revenue of $16m, IKE also delivered a maiden interim positive operating cash flow and statutory net profit.

The result was driven largely by increasing transaction volumes as use of its software and services grows
within IKE's enterprise clients. IKE's business activity is underpinned by the $310 billion fibre and 5G rollout in North America, which offers IKE the opportunity to embed its solutions within clients.

Buy (Speculative), Valuation $A1.21 "