SLI Systems (SLIZ)

Business description

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.

Stock data

Market cap.NZ$50m
Last closeNZ$0.80
High / Low (52 weeks)NZ$1.2 / NZ$0.7
Stock market listingNZ
Forecast net cash (NZ$m)4.4
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual0.0(27.3)(2.4)
Relative *(6.1)(30.5)(16.4)

* % Relative to local index

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Y/E Jun Revenue (NZ$m) EBITDA (NZ$m) PBT (NZ$m) EPS (c) P/E (x) P/CF (x)
2014A 22.4 (5.4) (5.4) (8.5) N/A N/A
2015A 28.6 (6.5) (6.7) (10.7) N/A N/A
2016E 36.6 (0.3) (0.6) (1.0) N/A N/A
2017E 46.2 4.1 3.7 6.0 13.3 28.8

Last updated on 01/07/2016

Investment summary

SLI Systems has announced it is on track for record revenue of NZ$35m for the 12 months to 30 June, which equates to a 25% year-on-year increase. Annual recurring revenue, however, is expected to be flat due to the loss of three large customers, two due to insolvency and one as a result of change of control. CEO Chris Brennan remains confident that recent changes made to North American operations will restore growth and complement the greater than market growth SLI’s operations are enjoying in the Asia Pacific and EMEA (predominantly the UK). SLI had NZ$5.6m cash on hand at 31 December and expects to break even without requiring additional capital. We are reviewing our FY16 forecasts in light of the company's guidance.

Last updated on 06/07/2016

Industry outlook

Mobile search and business analytics are becoming key industry drivers for SLI Systems. e-Retailers are increasingly aware that effective search and merchandising can have a significant impact on revenue and profitability and therefore deserve specialised focus. Mobile search is particularly difficult and it is the appreciation of this fact by retailers that should lead to growth in the independent site search industry.

Last updated on 06/07/2016

Key management

Greg Cross, Chairman
Chris Brennan, CEO
Rod Garrett, CFO

Company address

78-106 Manchester Street
Christchurch 8011
New Zealand
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