M2 TELECOMMUNICATIONS GROUP LIMITED
Technological Independence in Action
MTU - Smart Business eConference - Mr Vaughan Bowen, Managing Director
Mon, 21 Jul 2008 11:00AM
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M2 TELECOMMUNICATIONS GROUP LIMITED (MTU)
ASX code: MTU
Website: http://www.m2.com.au
Industry: Telecommunication Services
Principal Activities:
Adding value to, and reselling, telecommunications services.
Address:
, 60 City Road, Level 10 - IBM Centre,
SOUTHBANK
VIC
Phone: (03) 9674 6555
Fax: (03) 9674 6599
Executives & Directors
Mr Craig Farrow , Chairman
Mr Vaughan Bowen , Managing Director
Mr Dennis Basheer , Non Exec. Director
Mr Max Bowen , Non Exec. Director
Mr John Hynd , Non Exec. Director
Mr Darryl Inns , CFO
Ms Kellie Dean , Company Secretary
Company Podcasts
Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
Please refer to the relevant stock exchange if any of the above information is incorrect
M2 TELECOMMUNICATIONS GROUP LIMITED (MTU) Events
| Company (Stock Code) | Date/Time | Event |
Timezone: Australia/NSW |
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Tue, 2 Jun 2009 04:30PM |
M2 Acquires Commander Business Assets - Mr Vaughan Bowen, Managing Director |
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Thu, 26 Feb 2009 01:15PM |
MTU - Half Year Results Overview - Mr Vaughan Bowen, CEO |
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Fri, 5 Dec 2008 09:45AM |
MTU - M2 Agrees To Acquire People Telecom - Mr Vaughan Bowen, CEO |
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Tue, 26 Aug 2008 01:30PM |
MTU - 2008 Full Year Results - Mr Vaughan Bowen, CEO |
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Mon, 21 Jul 2008 11:00AM |
MTU - Smart Business eConference - Mr Vaughan Bowen, Managing Director |
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Tue, 24 Jun 2008 03:00PM |
MTU - M2 Announces Wholesale Agreement with People Telecom - Mr Vaughan Bowen, Managing Director |
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Thu, 28 Feb 2008 08:45AM |
MTU - Half Year Results end Dec 2007 - Mr Vaughan Bowen, Managing Director |
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Mon, 4 Feb 2008 12:45PM |
MTU - M2 Acquires Unitel from Commander - Mr Vaughan Bowen, Managing Director |
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Wed, 5 Dec 2007 01:00PM |
MTU - Emerging Companies Online Conference Presentation - Mr Vaughan Bowen, MD |
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Wed, 10 Oct 2007 01:45PM |
MTU - FY2007 AGM Briefing - Mr Vaughan Bowen, MD |
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Thu, 6 Sep 2007 02:00PM |
MTU - Launch of Green Mobiles - Australia's 1st Environmental Telco - Mr Vaughan Bowen, MD |
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Thu, 23 Aug 2007 10:00AM |
MTU - 2007 Full Year Results - Mr Vaughan Bowen, MD |
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Fri, 3 Aug 2007 11:15AM |
MTU - Vodafone New Zealand Mobile Wholesale Agreement - Mr Vaughan Bowen, MD |
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Tue, 17 Jul 2007 12:00PM |
MTU - Simply Mobiles Launch - Mr Vaughan Bowen, MD |
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Mon, 2 Jul 2007 01:00PM |
MTU - M2 Acquires Tenex Telecommunications - Mr Vaughan Bowen, MD |
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Fri, 29 Jun 2007 01:00PM |
MTU - Plan to Acquire Orion Telecommunications - Mr Vaughan Bowen, MD |
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Thu, 21 Jun 2007 11:05AM |
MTU - Optus Extends M2 Wholesale Enabler Appointment to 2010- Mr Vaughan Bowen, MD |
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Tue, 29 May 2007 04:00PM |
MTU - MicroEquities Micro Cap Conference Presentation - Mr Vaughan Bowen, MD |
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Wed, 9 May 2007 02:00PM |
MTU - Acquires Wholesale Communications Group - Mr Vaughan Bowen, MD |
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Tue, 27 Feb 2007 03:30PM |
MTU - Reports 50% Increase in Half Year Profit - Mr Vaughan Bowen, MD |
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| Wed, 25 Feb 2009 11:00PM |
Interim Results | ||
| Fri, 31 Oct 2008 03:00PM |
Annual General Meeting Level 12, 600 Bourke Street, Melbourne, VIC
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| Thu, 30 Oct 2008 11:00PM |
Date Payable | ||
| Tue, 14 Oct 2008 11:00PM |
Record Date | ||
| Wed, 8 Oct 2008 11:00PM |
Ex Div Date | ||
| Tue, 26 Aug 2008 | Full Year Results | ||
| Sun, 30 Mar 2008 11:00PM |
Date Payable | ||
| Tue, 11 Mar 2008 11:00PM |
Record Date | ||
| Tue, 4 Mar 2008 11:00PM |
Ex Div Date | ||
| Tue, 30 Oct 2007 11:00PM |
Date Payable | ||
| Mon, 15 Oct 2007 | Record Date | ||
| Tue, 9 Oct 2007 | Ex Div Date | ||
| Fri, 5 Oct 2007 04:00PM |
Annual General Meeting Level 1, 350 Collins Street Melbourne VIC
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| Mon, 2 Apr 2007 | Date Payable | ||
| Tue, 13 Mar 2007 11:00PM |
Record Date | ||
| Tue, 6 Mar 2007 11:00PM |
Ex Div Date | ||
| Mon, 26 Feb 2007 11:00PM |
Interim Results | ||
| Mon, 30 Oct 2006 11:00PM |
Date Payable | ||
| Mon, 16 Oct 2006 | Record Date | ||
| Fri, 6 Oct 2006 04:00PM |
Annual General Meeting Hotel Charsfield, 478 St Kilda Road Melbourne VIC 3000
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  Displaying 1-20 of 48 events
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M2 TELECOMMUNICATIONS GROUP LIMITED (MTU)
| Change in substantial holding | Wed, 24 Jun 2009 |
| Appendix 3B | Tue, 23 Jun 2009 |
| Change of Director`s Interest Notice | Tue, 23 Jun 2009 |
| M2 Completes Commander Business Assets Acquisition | Tue, 16 Jun 2009 |
| Change in substantial holding from HHL | Fri, 5 Jun 2009 |
| Boardroom Radio - M2 Acquires Commander Business Assets | Tue, 2 Jun 2009 |
| M2 Acquires Commander Business Assets | Tue, 2 Jun 2009 |
| Change in substantial holding | Tue, 12 May 2009 |
| Ceasing to be a substantial holder | Tue, 12 May 2009 |
| Change in substantial holding from HHL | Mon, 11 May 2009 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
PRESENTATION BY VAUGHAN BOWEN, MANAGING DIRECTOR OF M2 TELECOMMUNICATIONS GROUP (MTU)
“Smart Business eConference - Technological Independence in Action”
http://www.brr.com.au/event/47963
MONDAY, JULY 21, 2008, 11:00 AM.
MTU Thanks for having me today to speak at the conference. I am speaking on behalf of M2 Telecommunications, which is the company that I co-founded
10 approximately nine years ago now. Our business, as the opening slide suggests, we are a technologically independent company. That means we are not a company that has developed its own technologies, we utilize the technologies of others. In many ways, our presentation today will take a different perspective on the technological space in terms of how business can
15 be profitable, viable, and in our case strongly growing by utilizing the technology of other parties and harnessing them under one’s own umbrella.
Just to give you a bit of an overview of our business, the best way we can summarize the business, it is always difficult to do the one-sentence
20 summary of the company, but I think this goes fairly close. Our company, M2, is a consistently profitable, technologically independent, full service telecommunications provider, and we operate in both the retail and wholesale markets as indicated in the slide.
25 So to cover the key points around M2, just to put some perspective on where we fit in the telco food chain. We are, as it stands today, the largest technologically independent or non-infrastructure telco in the country with approximately $145 million in annualised revenues, and that is as of July this year. Pleasingly and most importantly, from an investor’s perspective, we are
30 a company that has been year-on-year profitable for many, many years, four, five or six consecutive years now, six consecutive years, in fact, and we pay dividends and we do all sorts of, I guess, investor comforting behaviours of that nature including having a very tidy, lowly geared balance sheet and a track record of, as I said, growth and profits.
35
The Company is premised on the basis that it has a very strong and established supply relationships with Tier 1 carriers. We refer to Tier 1 carriers as basically the number one or number two telecommunications carriers within the markets we operate, and those markets are Australia and
40 New Zealand. At the moment, in Southern Australia, Telstra and Optus are our central providers as you would expect, and in the New Zealand market, Telecom New Zealand and very soon to be Vodafone for mobile services in New Zealand. Obviously, the benefit of having this technology co-independence or this cross-carrier relationships is that we have flexibility from
45 a supply point of view, we have leverage from a competitive means of buying point of view, we are able to keep the other parties on their toes from a pricing and a commercial perspective, and we have access, most importantly, to all of the telco services, both legacy services and current and new generation services. So we do not have the risk or the technology risk that goes with taking our business down a particular path which ends up being not the commercial first preference of our target customers. We have the ability to move and change as technology moves and changes.
5 Across both our retail and wholesale arms, we have the full suite of telecommunication services. Whilst we do not have our own infrastructure, we provide to our customers the full suite of services that they would get from an infrastructure provider and we do so under our own billing umbrella. We have several brands, but they fall basically within two categories which is our M2
10 telecom division, which is our retail area primarily focusing on small businesses, and then we have our M2 wholesale area or division of the business which focuses on selling telco services to the smaller- and medium sized telco communities. So we are a technology independent reseller of telecommunication services to other technologically independent resellers of
15 telecommunication services. To put it in context, in Australia today, there is something in the vicinity of 500 to 600 small- and medium-sized telcos, whether they be Internet service providers or voice service providers or mobile service providers. We provide a very valuable service to that second and third tiers of the industry. One might call it, we provide (inaudible)
20 (0:03:59) services to those providers such as fixed line voice services, third generation mobile services, wireless data services, terrestrial broadband services, ADSL, ADSL2+, and in due course, as the broadband landscape changes under the pending National Broadband Network, we will similarly have access under the proposed open access structure to the broadband
25 services that come by that network.
The business has expanded recently into New Zealand, as I touched on earlier. We operate in that market for now a couple of years, and mobile is the next expansion to that market. We, in fact, will be the first, if all goes to plan,
30 we will be the first virtual network operator in mobiles in New Zealand following the longstanding duopoly that has existed in New Zealand with Telecom and Vodafone.
The second last point on this overview slide refers to our company being the
35 exclusively endorsed Mobile Virtual Network Enabler, another buzz word in our industry or term I should say, of the Optus organization or SingTel Optus. What that means in lay speak is Optus has appointed us as their preferred aggregator or enabler of other telecommunications companies aspiring to access the Optus mobile network on a wholesale basis. So effectively, we
40 have become a sub-wholesale department to Optus to facilitate bringing other providers onto the network to help them further utilize the network capacity of their third generation mobile voice and data network, which currently is the holder of second place in market share in the Australian market after Telstra.
45 In a retail space, we have always positioned our company in offering differentiated services over and above just commodity selling, which is commonplace amongst traditional carriers where we have shaped and promoted a number of programs over the years where we packaged our telco services with other value-added benefits such as travel incentives and business equipment bundling incentives and other value adds that provide small businesses in particular, which has been our target market historically, to provide those businesses with something that is more appealing and more compelling than a traditional offering at perhaps a cheaper price (inaudible)
5 (0:06:05).
Moving to the next slide, I wanted to focus on the mobile area of our business. Mobile is, certainly in our case, (inaudible) (0:06:13) telco landscape at this moment, definitely the growth vehicle. Broadband in the
10 1980s is a growing area also, but there is a great deal of flux and question around the forward direction of the broadband out of our industry. So mobile is the one zone which we can speak very comfortably about in terms of its growth, particularly in the area of mobile broadband which is growing quite beyond the expectations of almost every industry observer or commentator.
15
Let me first touch on the mobile in the traditional sense as we understand it, which is the voice and basic content aspect of mobile voice and text and MMS and so forth. As I touched on in the previous slide, we are, M2 that is, the appointed Virtual Network Enabler for Optus, so that is our, I guess,
20 springboard into the mobile space where we not only enable our own requirements under our own retail business but we enable access to the voice mobile network for the second and third tiers of the industry who are seeking access to the Optus mobile network. So that is very much the driver of our currently very significant growth in mobile connections on a month-on-
25 month basis.
In the manner in which we package voice mobile services, the voice and content services, there is a range of offers that you would be familiar with in the market. We take our offerings both at wholesale and retail markets from
30 traditional individual plans, Blackberry plans, Business Fleet plans, the cap plans that you would be familiar with, and all ranges and variations in between. So basically, we provide, again, to both our retail direct customers and our wholesale customers that we enable. We provide a full suite of services so they can be competitive in the mobile landscape.
35
To put the strong mobile landscape in context, there is approximately 110% penetration of mobiles in the Australian market today, meaning oddly enough that each Australian has something more than one mobile connection per person. So the growth and opportunity for the non-incumbent players like
40 ourselves and those companies that we enable is providing an alternative to those existing mobile users in the marketplace. So the actual scope to grow the pie or to grow the market of mobile use in a voice sense is limited, but the size of the market is quite massive, 15 to 16 million mobile users in the Australian market alone. So the opportunity to even get fractional market
45 share represents tens of thousands of connections as an opportunity.
I wanted just perhaps to move onto the 3G or the HSPA wireless data points that I have at the second half of this slide 3 to make particular mention that this really is the growth engine in mobiles. As I said, mobile itself is a massive market with massive opportunity just in the traditional voice sense, particularly with the transition to 3G which is the faster mobile protocol, but 3G has also facilitated the wireless data revolution, one might call it, that being the ability to access through your mobile computer a.k.a. laptop, now quite high-speed
5 mobile wireless broadband access available at any location where, in our case the Optus mobile network, has 3G coverage. At this moment in time, that is an 80% coverage footprint, and by the end of 2009, that will be a 98% of the population coverage footprint. So it presents a very convenient and now actually quite high-speed mobile broadband solution for users all over
10 the country.
To put these numbers in perspective, in the last 12 months alone, across the different mobile carriers, Optus, Telstra and Vodafone and Hutchison being the obviously dominant volume generators, nearly a billion dollars in new
15 market that did not exist a year ago has been created through the arrival of wireless 3G broadband or otherwise known as HSPA. So it is definitely taking the market by storm. It has expanded the pie of the telecommunications effectively by a billion dollars in 12 months, and that is really just scratching the surface in terms of penetration. So, certainly, watch that space.
20
The wireless products available through both our retail and wholesale channels as our mobile traditional service, the voice services, we have a package of flexible services that goes across all different market segments so it meets the needs of business users as well as consumers as well as
25 corporate Australia, and as I touched on a moment ago, the coverage footprint that we will be able to operate within will be upward of 98% within a year or so.
Moving to slide 4, just to give a bit of an update on where the M2 business
30 sits as of July 2008, as I mentioned at the outset, we are about $145 million annualised revenue business. The split of those revenues is approximately two-thirds through our wholesale arm. That is the arm where we enable other telecommunications companies or Internet service providers with our voice mobile and data services. About a third or the remaining third is in our retail
35 area, which is what we badge M2 Telecom, which incorporates a few different brands, like Southern Cross Telco, co-brands we operate within our retail area.
Both the wholesale and retail areas were quite reasonably bolstered in the
40 last 12 months through a couple of technical acquisitions, one of those being the acquisition of the business called Unitel which was a wholesale subdivision of the Commander Organization and established (inaudible) (0:11:41) to telco. We have also acquired the country's largest independent data wholesaling business called Wholesale Communications Group about a
45 year earlier or less than a year earlier than that. So both those acquisitions had the effect of completely rounding up our wholesale offering as well as bolstering our group revenues upward to $50 million and pleasingly bringing a considerable lift to the underlying profits of the business at the same time.
In the telecom area, in the agreed M2 Telecom/retail area, we have also acquired all of the assets of Orion Telecommunications Limited, primarily those assets being the established operations of Southern Cross Telco which is a business that has been operating for about 12 years in the market and
5 has a very well established call centre and back-up help operations in Hobart and Tasmania. So that was a very valuable acquisition for us both in terms of scale but also in terms of the capabilities around billing and customer service and telemarketing capabilities that we were in need of expansion.
10 Another comment I will just make in this update slide is just around the telco market. Consumer data usage definitely is a high area of focus and a high area of growth at the moment. As I mentioned in the previous slide or two, a billion dollars in a year is a fairly staggering new market arrival from a new generation product. Second point there is that we are, as a result of that,
15 expanding our range of services and products to make sure that we are meeting all the different parts of the market, very relevant for our business as well because (inaudible) (0:13:15) than others because, through our wholesale operations, we do service providers that operate in all parts of the telco market. So we need to be able to have the flexibility and creativity in the
20 way we bundle our products to meet the demands of customers that may be targeting consumer Australia as well as someone that may be targeting the business market and everything in between. The last comment to be made there, it is not going to be a shattering news to the audience here today, is that the National Broadband Network or the much publicized Fibre to the
25 Node broadband network is indeed a high point of discussion around the industry. There is a tender process that is on foot at the moment that is getting very competitive and political as you would expect when there is something like a $10 billion project in the offing with $4.7 billion worth of government funding accompanying it. So that is interesting. I think from our
30 perspective as a network independent provider with it is a pleasing affirmation of the business model that we have developed because the broadband network, in whichever successful (inaudible) (0:14:17) hands it ends up, will be an open access network, so in effect, all providers in the country will be accessing somebody else’s technology over technology owned by the owner
35 of that National Broadband Network as distinct from building their own technology in the area of ultra high broadband which is what the Fibre to the Node or Fibre to the Home in certain situations represent.
So if we are very pleased about the way that we will trek, we are obviously
40 very interested. We are very pleased in the perspective of it being an open access network, but we are obviously very concerned and focused on exactly the form that that will take, such as the (inaudible) (0:15:00) and commercials and access restrictions, if any, that will exist around that.
45 Just jumping on a couple of slides that refer specifically to M2's performance because it is all very well to talk about our business model and not top line revenue performance, but I think the only way to illustrate whether all the things am talking about in terms of technology independence and the merits thereof, the only way to prove whether I am on the right track or not with this business model is to prove whether the business actually drops out viable and sustainable returns to its shareholders. This graph on slide 5 illustrates in the (inaudible) (0:15:32) shots the strong revenue growth the business has experienced, and pleasingly year-on-year, it has grown. I think, on average, in
5 the last six years, it has been about a 74% average annual growth. So it is a strong growth curve, but most importantly, the pinkish solid section illustrates that the earnings have continued to grow accompanying that strong growth. Often in businesses, it is one or the other. You grow strongly at the expense or earnings or you do not grow so well and milk earnings, but we have been
10 able to achieve both through running a very tight operating cost model and also, as I said, being able to be flexible and dynamic with the technologies and supply partners that we use. So you have the businesses seeing a significant step up between 2007 and 2008, far more than the doubling in revenues and similarly in earnings. So we are very pleased about how the
15 last year has played out in particular.
These are some of the key metrics, just speaking to the investment community on the key numbers around our business. We listed the company on the stock exchange in October 2004, so it is coming up to four years listed.
20 We have just under 80 million shares on issue, diluted just a little over 80 million. We have a share price current about 51 odd cents which reflects a multiple of about 7.9 times our net profit after tax as estimated for this financial year, and that estimate is for the financial year just finished, I am referring to the 2007-2008 year. We were forecasting a range of between 4.7
25 and 5.1 million in net profit after tax and that compares with 2.4 million for the previous year. So it is a considerable step change aided by a strong organic growth particularly in our wholesale area and a couple of very favourable earnings-contributing acquisitions, the ones I mentioned earlier.
30 So we have got a reasonably modest market cap, I guess, because of the high end of micro cap at this stage. By definition, we do have a dividend policy that I have touched on earlier. It is one of the things that does make us somewhat unique in the telco sector, certainly in the junior end of the telco sector. We have been paying excess of 70% of our net profit after tax in
35 dividends for the last seven consecutive halves and we see no reason for that to alter. Based on the performance for the last six months, subject to (inaudible) (00:17:56) opinions on the subject, of course, yes, we have declared $0.04 fully franked dividend for the last two halves. With the growth in earnings, with the half just gone, hopefully, that will continue to improve.
40 With the other key numbers around our business, hopefully that would be regarded as reasonably solid, I guess, investment metrics.
Where does the business go from here? Firstly, we want to continue to cement our position as the largest independent wholesaler of telco services.
45 We provide a very valid and valuable service to the second and third and arguably fourth tiers of the telecommunications market. Those 500 or 600 smaller providers that are operating in natures all over the country, whether they be geographic natures or industry natures or otherwise, they have a need to access wholesale supply services at competitive prices, and on appropriate terms, we provide them that facility. Whereas the larger providers, we focus upon larger reseller customers like ourselves and not generally be able to facilitate or choose not to facilitate the smaller providers. So we have a very good place in that market, it is nearly $100 million part of
5 our business now and we expect to further consolidate that position as the leader in that technologically independent wholesaling area.
We are going to continue to expand our retail business as well. It was the business that got our company going over the last seven or eight years and it
10 is still a very valuable part of our business. It is something in excess of $50 million and a very good earnings contributor, similar to wholesale, and we expect to continue to see that grow in the next 12 months due to some of the call centre expansions and other things I mentioned earlier.
15 Acquisitions are still in the radar but very, very selective and very much on the basis that they are earnings (inaudible) (0:19:43) and not (inaudible) (0:19:47) opportunities our business as in the same theme as electing not to go into long-term investments in infrastructure. We similarly expect a short-term realization of earnings from businesses that we bring into the fold and
20 that has been borne out of the recent acquisitions and a jump in earnings follow those acquisitions.
Optimizing earnings is core to our business. We have a project within the whole group called Project Optimize, which is all about making sure that we
25 are both at the top line at the cost of goods line and at the operating expense line. We run the business lean and cleverly. We have never pretended to be anything other than a company operating in specific natures. We are not trying to be all things to all people and we are very focused on earnings ever since day one. We have always been very focused on credit control and
30 similarly on making sure that we keep a very modest debt position in the business which is still the case today.
EBIT is a target. Being 10% of our revenues is where we are looking to get to. It was about 4.5% this time last year; it is about 7.2% or 7.3% standing here
35 today. We are just focused on buying efficiencies and just optimizing the business more generally. We believe that is a very realistic target, 10% EBIT sales. In our current revenue levels, that will be something in the vicinity of $15 million EBIT position for a company that has no infrastructure investment whatsoever and has already repaid all of its investors and also all of its
40 invested funds in the form of dividends over the last four years. It is a very nice position to be where we can generate those kinds of earnings on such a low capital base.
Last couple of points on this conclusion slide, around just what it is that
45 makes us strong and sustainable, which I have touched on in various forms during the presentation, but basically, first and foremost, we have that technological or network independence. We can move and vary our supply partnerships depending on competitiveness and depending on technology direction. Secondly, we target the markets that we know and that we think we can add real value to and we use low cost channels to get to those markets. We do not have a business that has heavy overhead or cost base that you would associate with a traditional telco. We have to have differentiated offerings, and without having differentiated offerings, we are just another
5 company in the sea of competitors and I think that applies to any industry. If one cannot differentiate oneself, then it is very difficult to build a sustainable position in any market. That exclusive carrier endorsement also that I referred to from Optus has been a very key strategic weapon and that gives us a great deal of competitive edge going forward and that exclusive endorsement has
10 recently been renewed for a further three years. So that gives us that forward sustainability.
Track record of earnings, growth and dividends. I am a bit like a broken record on this one, but it is something we are very, very proud of, that the
15 business has continued to grow its bottom line with top line. The 74% annual revenue growth is a good number, but most importantly, six consecutive years of profits and growth in those profits and declaring dividends that have generally yielded something north of 7% fully franked at the moment, even better than that based on a reasonably subdued share price. So it is definitely
20 a crowning achievement. The earnings growth and the dividends all went parallel with one another.
Down the last point, we are positioned for continued growth. Our balance sheet is lowly geared. We have a modest amount of debt on our balance
25 sheet, but that is more than two or three times covered by our EBITDA or above the covenants of our bankers. So we have what the finance markets would call debt headroom, but we are not in any mad hurry to fill up that headroom. We do have a very strong cash flow business because of the negligible capital investment. The cash flows of our business are strong and
30 sustainable, proven up more than anything else by the strong dividend proportions that we pay which would average something like 73% or 74% for the last four years, 74% of our net profit after tax that is.
Last and absolutely not the least is that the management group that founded
35 the business is in its entirety still driving the business forward. The Board of Directors that we founded the business with are the same Board of Directors still today and we have a group of senior middle management talent that obviously has expanded over the last few years through our growth. We now number a 160ish, 160 or 165 staff, but the core management team, senior
40 executive and middle management teams are long serving and provide us with a great base of intellectual property to build off.
So that is where we conclude my presentation. I hope it is illustrated that a business that operates in a high technology area can still thrive even if it is
45 not, in fact, the innovator of technology. We are an innovator of half the markets and of identifying natures and executing in those natures, but we found a very successful and very stressful business model over the last seven or eight years, particularly operating as an implementer of the technologies of others and staying very close to the core supply sources of new technologies in our sector. We have no reason to vary that model.
So that is our piece. I thank you for your time and please feel free to contact
5 myself or the other names mentioned on our questions and contacts slide to have any further discussions you may like to have. Thank you very much.
INTERVIEW CONCLUDED
Contact brr@brr.com.au for more information
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