Check out 2020 AGM presentation at:
https://namsys.com/files/misc/namsys_annualmeeting_2020_presentation.pptx
Some highlights I thought were relevant to current economic crisis:
slide 4
"ATM withdrawals are down as much 50% in some areas"
"The long term effects are difficult to predict. The industry consensus seems to be that this will put further pressure on cash payments and we tend to agree. From a macro perspective there will be an extended impact to brick-and-mortar retail in general. We believe that many bank branches closed during the pandemic may not reopen and that ATM networks may shrink."
slide 5
Cirreon SmartSafe = down ~10% ; other products only marginally impacted = no growth?
"We are seeing a negative impact to our Cirreon smart safe product revenue. This is our highest-grossing product and represents approximately 70% of sales."
slide 7
"[Brink's G4S transaction] excludes the UK and South Africa and G4S’ Retail Cash Solutions, Cash360, Deposita and G4SPay products. These products represent G4S’ mature smart safe hardware and end-to-end retail cash management technology." ==> Does this mean that there will NOT be additional NamSys revenue [or as much revenue] from acquisition since acquisition did NOT include the smart safes and related hardware/software???
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All-in-all, I am a bit more at ease than before the presentation. However, the slump in revenue while growing expenses and lack of colour on Brinks Dunbar and G4S acquisitions raise more question marks. The management refused to comment on whether Dunbar's assets will be brought onto the NamSys platform. Similarly, they have mentioned that the G4S asset acquisition did not include the "cash management technology" and smartsafe hardware. I wonder whether this means that acquisition included just the armored trucks / network. This should still be a positive for NamSys and their cash-in-transit one-man truck developments but will not be as much of a positive if Brinks would have acquired all of the smart safes and recyclers, which could then have been put into the NamSys flagship software. Too bad because integrating the new acquisitions could have provided a clear pathway to not very risky revenue growth in the coming couple years. NamSys also negated any potential acquisitions and in my understanding pretty much said that everyone they talked to were to expensive and too risky and they will not be making any acquisitions. This is in contrast with their competitors who are aggresively consolidating the European specialty financial software market as well as global vending machine/change/POS terminal/arcade/atm/safe hardware/software (see for example Safelogy/CMH or Suzohapp/ACON). I wonder what is the management's plan with the cash hoard - probably their own bonuses as priority but maybe a special dividend. I do not like either of the options - growth is much more valuable than a small, irregular dividend. Given the advancing age of the major shareholders, however, a dividend might become increasingly appealing after 30+ years of tenure with the company.
What are yout thoughts? Do any of you have more insights into what's up with Dunbar not being onboarded and G4S deal excluding smartsafe/recyclers and related software?