Atturra (ASX: ATA) – an integrated IT solutions provider
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
Atturra (https://atturra.com/) provides a suite of integrated solutions mainly to government departments across all IT sectors including Advisory and Consulting Services, Business Applications, Data and Integration, Cloud Services, ERP Solutions, and OpenText Enterprise Content Management, etc.
The company was listed in December 2021 by raising $24.8m@50c.
In August 2021, the company acquired Mentum Systems Pty Ltd which has a presence mainly in the ACT for $4.1m in cash financed by a drawdown of $4m from the loan with 263 Finance Pty Ltd.
In January 2022, the company acquired Kettering, an enterprise resource planning (ERP) solutions provider based in Brisbane for an upfront consideration of $3m in cash and $2.25m cash in deferred earn-out, which reflects a 4.05 multiple calculated by reference to achieving all of the deferred consideration milestones.
In May 2022, the company acquired Hayes Information Systems and Communications Pty Ltd, an award-winning OpenText partner which provides information management consultancy, digital transformation services, and Enterprise Content Management (ECM) application support services. The acquisition is made of an upfront consideration is $8.50m in cash and $7.89m in cash earn-out. The valuation metrics are based on a multiple of 7x the forecast EBIT in FY23.
In January 2023, the company acquired Hammond Street Developments Pty Ltd, a specialist Microsoft services provider to VIC public sector, for $6.5m plus $2m earn-out. The valuation metrics are based on a multiple of 5x the forecast EBIT in FY24.
In March 2023, the company acquired Somerville Group for a total price of $19m including $15m cash, 1.65m share and $2.6m earn-out. The valuation metrics are based on a multiple of 7.5x the forecast EBITDA in FY24.
In July 2023, the company acquired Silverdrop Education, a HR and payroll specialist for $2.7m plus $0.6m earn-out. The valuation metrics are based on a multiple of 5.5x the forecast EBIT in FY24.
In September 2023, the company acquired CNW for nearly $50m, 75% of which is paid by cash.
Total consideration for acquisitions to date is $41m excluding earn-out, which were all made by cash.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| ATA | 0.83 | 312770789 | 259599754.8700 | 39/3.8 (23) |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 895 | 91.88% | 90.88% | 61.48% | 5862025 | last raise $50m@80c; pre raise $25m@85c |
The company has only two directors, the Indian controls over 60% of the company.
BUSINESS
Below is the company’s past 5 years performance:
| ATA | 2023 | 2022 | 2021 | 2020 | 2019 |
| Operation Revenue | 178331 | 134579 | 98339425 | 76042992 | |
| Cost of Sale | -124223 | -88210 | -68773147 | -57956261 | |
| Gross Revenue | 54108 | 46369 | 29566278 | 18086731 | 0 |
| Gross Margin | 0.3034 | 0.3445 | 0.3007 | 0.2378 | 0 |
| Overheads | -36878 | -32796 | -21275236 | -14704907 | |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -36878 | -32796 | -21275236 | -14704907 | 0 |
| Operation Profit | 17230 | 13573 | 8291042 | 3381824 | 0 |
| Other Revenue | 1863 | 112 | 2932706 | 70055 | |
| Interest Expense | -1088 | -489 | -97503 | -62182 | |
| D&A | -2054 | -1330 | -1636000 | ||
| Income Tax | -5308 | -3781 | -1925421 | -500061 | |
| Net Profit | 10643 | 8085 | 7564824 | 2889636 | 0 |
| NOTES | Jobkeeper unclear |
SUMMARY
A $200m business managed by 2 directors poses a big compliance risk, and the company made $8m profit, all used to buy business, none for dividend, big warning sign.
The company also raised a war chest of money in November 2022.