Invigor’s Condat negotiates new contracts to the value of $1.25 million
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It was only last week that Invigor (ASX:IVO) informed the market that its Condat AG (Condat) business was on target to deliver its strongest ever financial result in FY2017.
IVO’s Managing Director, Gary Cohen said that the forward outlook also appeared promising based on its workbook at the beginning of October. The group had booked orders combined with contracts being finalised with a value of more than $2.7 million. These comprised new contracts and contract extensions for customers across Europe.
Yesterday, Cohen updated the market regarding the group’s progress, confirming two key contract renewals with German public broadcaster RBB and performance rights agency GVL.
The contracts ranging from 2018 to 2020 have a combined value of $1.25 million, and they have effectively strengthened the group’s already established position as a leading vendor of IT-based smart media solutions across Europe.
However, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
Cohen was already forecasting revenue of $7.6 million in FY2017, up from $7 million in the previous financial year. A large percentage of the anticipated full year income flows from recurring revenue generating contracts that have high retention rates and scope for renewal at increased values given the potential to provide add-on services.
It would appear that Condat’s workbook is poised to expand further with Cohen saying that its tendering pipeline is building all the time with a strong conversion rate from tenders to revenue generating contracts.
As the business has grown, margins have improved significantly, and Condat is forecast to deliver EBITDA of circa $1.1 million in fiscal 2017.
Cohen also took the opportunity to reaffirm the overall group’s progress in Australia and Asia, commenting that contract successes were pending.
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