Dona Ferentes
beware the aedes of marsh
- Joined
- 11 January 2016
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$2.62. ...time for another name change? Half yearly out. shrinking to ?
FY2025 FINANCIAL GUIDANCE UPDATE
The divestment of the company's Advisory business will have a material impact on the company’s current FY2025 financial market guidance. The company’s 2025 financial results will change when the Advisory divestment transaction is closed (expected early Q4 FY2025).
As a result of this divestment, there will be changes to corporate expenditures such as staff costs, office costs, insurance, professional fees, information technology costs, third-party software costs, management incentives, etc., all of which will need to be reviewed.
In addition to these changes, under the Transition Service Agreement, SLR will pay RPM for corporate services to facilitate the smooth transition of employees, clients and operational systems. Services under the TSA are provided on a “cost or cost plus” and “as needs” basis, and as such the financial impact of this agreement will be unknown until the TSA is complete.
As a consequence of the Advisory divestment, major adjustments will also be needed to Depreciation, Amortisation, Transaction /Restructuring Costs, and tax, the values of which are not fully known at this point in time.
Because of the multitude of moving parts, the company feels it is not in a position currently to provide reliable FY2025 financial guidance, and therefore it withdraws its current financial guidance and intends to reissue new FY2025 financial guidance early in Q4 FY2025 following closure of the Advisory transaction.
OUTLOOK
The company's outlook remains very positive based on the following:
• The divestment of its Advisory division will enable the company to focus solely on its software business.
• Market acceptance and adoption of RPM’s software products continues to accelerate particularly in the important Asset Management, Operations and Execution work streams.
• The company is actively working with some of the world’s largest mining companies on productivity software development projects which we believe will solidify and expand RPM’s reputation as a respected and reliable “go to” software vendor for the global mining industry.
The Board believes the sale of its Advisory division will remove any impediment software investors (who favour companies with annually recurring revenue) have when they analyse the company. It will also make the remaining business much easier for investors to understand and evaluate.
The on-market share buyback program, which was first paused by the company on the 31st of August 2024, shortly before the company was admitted to the S&P ASX 300 Index, continued to be paused throughout the confidential Advisory divestment sales process, and will now be restarted.
With a strong balance sheet, healthy cashflow, and competitive software offerings, the company is optimistic about the years ahead.
nh
FY2025 FINANCIAL GUIDANCE UPDATE
The divestment of the company's Advisory business will have a material impact on the company’s current FY2025 financial market guidance. The company’s 2025 financial results will change when the Advisory divestment transaction is closed (expected early Q4 FY2025).
As a result of this divestment, there will be changes to corporate expenditures such as staff costs, office costs, insurance, professional fees, information technology costs, third-party software costs, management incentives, etc., all of which will need to be reviewed.
In addition to these changes, under the Transition Service Agreement, SLR will pay RPM for corporate services to facilitate the smooth transition of employees, clients and operational systems. Services under the TSA are provided on a “cost or cost plus” and “as needs” basis, and as such the financial impact of this agreement will be unknown until the TSA is complete.
As a consequence of the Advisory divestment, major adjustments will also be needed to Depreciation, Amortisation, Transaction /Restructuring Costs, and tax, the values of which are not fully known at this point in time.
Because of the multitude of moving parts, the company feels it is not in a position currently to provide reliable FY2025 financial guidance, and therefore it withdraws its current financial guidance and intends to reissue new FY2025 financial guidance early in Q4 FY2025 following closure of the Advisory transaction.
OUTLOOK
The company's outlook remains very positive based on the following:
• The divestment of its Advisory division will enable the company to focus solely on its software business.
• Market acceptance and adoption of RPM’s software products continues to accelerate particularly in the important Asset Management, Operations and Execution work streams.
• The company is actively working with some of the world’s largest mining companies on productivity software development projects which we believe will solidify and expand RPM’s reputation as a respected and reliable “go to” software vendor for the global mining industry.
The Board believes the sale of its Advisory division will remove any impediment software investors (who favour companies with annually recurring revenue) have when they analyse the company. It will also make the remaining business much easier for investors to understand and evaluate.
The on-market share buyback program, which was first paused by the company on the 31st of August 2024, shortly before the company was admitted to the S&P ASX 300 Index, continued to be paused throughout the confidential Advisory divestment sales process, and will now be restarted.
With a strong balance sheet, healthy cashflow, and competitive software offerings, the company is optimistic about the years ahead.
nh
