SLI Systems

NZ: SLIZ

NZD39.9m market cap

NZD$0.64 last close

SLI Systems’ core products are e-commerce site search and navigation tools that learn from customer behaviours to improve the relevance of search results and therefore increase sales conversion.

Investment summary

SLI’s results reflect the business’s transitional status. Substantial savings were made to sales and marketing expenditure, which underpinned the company’s first year of profitability. We continue to forecast margin compression in the near term as the business begins its transition to an indirect sales model. Successful implementation of this shift remains the critical determinant of the business’s prospects.

Y/E Jun
Revenue (NZ$m)
EBITDA (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 32.0 (0.5) (0.8) (1.8) N/A N/A
2018A 34.4 4.5 4.2 6.7 9.6 10.5
2019E 34.2 2.6 2.3 3.2 20.0 23.7
2020E 34.8 1.1 0.8 1.2 53.3 35.6
Last updated on 13/12/2018
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (NZ$m) 10.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 4.9 103.2 220.0
Relative* 6.2 116.2 212.1
52-week high/low NZ$0.6/NZ$0.2
*% relative to local index
Key management
Greg Cross Chairman
Chris Brennan CEO
Rod Garrett CFO