ITE i.t.& e limited

agm notes

  1. 146 Posts.
    Hi all
    I went to the AGM back in November and seeing there didn’t seem any interest in the stock I didn’t bother posting any of the info I gleaned from the meeting, but with all this renewed interest lol here are a few notes and observations I made;

    No plans for any share consolidation.
    Cost base reduced by $3,000,000 with further cost cutting to come, including moving from a tier one audit firm.
    Travel costs substantially reduced
    HHL off register their holding absorbed by a new large shareholder.
    Staff utilization up from <50 to >70% on fee paying work
    They seem to think North America and Europe will exit early from downturn (I’ve spoken to an investment banker who reckons it will take 10 years for the European banks to recover and that the US will come out of it pretty quick so who knows?)
    Focus on risk is a hot focus for CFOs and CEOs interviewed as part of their strategic review.
    Company focus is on the US and Europe and to explore opportunities in Asia
    Moral is good in the company
    Company is financially viable
    Cash balance is better now than EOFY
    Management and board satisfied with overall financial stability
    Exchange rate working to ITE’s advantage

    I spoke to a number of directors at the AGM and without exception they were all very optimistic on the future of the company. I was told the company was now cash flow +ve and is a going concern for the next few years even without further sales. They certainly seem to have costs under control and while you can’t slash your way to greatness it seems prudent management in the current economic malaise; as an example, major shareholder and director Simon Yenken is now based in the US and it was deemed an unnecessary waste of funds to fly him out for the meeting. The new CEO Andrew Wood seems very approachable and indicated that he was more than happy to be contacted regarding any issues with the company, he is expecting plenty of interest in Razor as the financial market turmoil subsides. He has conducted a strategic review of the company and its products including consultations with their existing customer base and received very positive responses with regard to RAZOR. Non executive director of ITE, Ralph Pickering who is the MD of mergers and acquisitions for UXC has been buying ITE shares on market so obviously feels it is a buy at these levels.

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Currently unlisted public company.

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