SLI Systems (SLI)

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.

Share price chart

Share chart

Stock data

Market cap.NZ$80.6m
Last closeNZ$1.330
High / Low (52 weeks)NZ$2.8 / NZ$1.3
Stock market listingNZ
Forecast net cash (NZ$m)7.6
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual(5)(27.3)(33.5)
Relative *(5.6)(27.1)(39.3)

* % Relative to local index

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Y/E Jun Revenue (NZ$m) EBITDA (NZ$m) PBT (NZ$m) EPS (fd) (c) P/E (x) P/CF (x)
2012A 15.7 0.4 0.2 0.1 1330.0 44.8
2013A 19.0 (1.4) (1.6) (2.9) N/A N/A
2014E 22.5 (6.5) (6.7) (11.8) N/A N/A
2015E 30.1 (4.0) (4.4) (7.6) N/A N/A

Last updated on 29/07/2014

Investment summary

SLI Systems’ search and navigation products power the website search functionality for some of the world’s most high-profile companies, including Jelly Belly, B&Q and Harrods. Its subscription model, high retention rates (92% by value in FY13) and high gross margins (77% in FY13) provide a recurring revenue stream that should generate significant returns to shareholders, provided it reaches profitable scale. The current share price is at a 48% discount to our NZ$2.62 DCF valuation.

Last updated on 05/08/2014

Industry outlook

E-commerce site search is a growth market, thanks to the overall growth in e-commerce and the importance of effective search in converting website visits to sales. SLI Systems' cloud-based product minimises the initial set-up costs for its customers, resulting in a high ROI in a short time frame. Global e-commerce sales are expected to grow by 17% in FY13.

Last updated on 05/08/2014

Key management

Greg Cross, Chairman
Rod Garrett, CFO
Dr Shaun Ryan , CEO and Founder

Company address

78-106 Manchester Street
Christchurch 8011
New Zealand
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