v2 Report
CNX Connexionz Limited

Commentary: Connexionz is a technology company whose main product offering revolves around public transport tracking systems e.g. devices at bus stops that give the time until arrival of the next bus via tracking and monitoring systems. “The system tracks vehicles moving across the city network and gives passengers real time arrival information at their bus stop, and via the telephone and Internet.” (connexionz website; company overview)

They have an interesting and innovative product that brings convenience to passengers and management of public transport through information and monitoring. They have established a position in the domestic market through contracts with Christchurch City Council, Airbus (the airport bus in Auckland), and offshore with Arlington County. Testimonials from these companies are available on the Connexionz website.

Connexionz also completed a capital raising earlier this year for an investment in “Infocell UK” –which runs a similar system itself, as a means of gaining entry to the UK market. It is also in the process of deploying the system in Charlottesville. However the company has not made a profit over the past two years, and evidently expansion initiatives are taking their toll on the bottom line; but will this investment payoff eventually?

With net assets on the decline and cash balances in the red, one had better hope so! The product remains interesting; the expansion initiatives respectable in their ambition and initial progress… but the key factor of profitability and cash flows should be at the forefront of an investors mind. I’m not saying don’t invest, but if you do; it would be well advised to do your own research and come up with your own opinion – maybe the international expansion will payoff – maybe the company will break into stellar profitability. But for now it’s all a bunch of maybes, so keep an eye on it for changes in the nature of the maybe!

Website:  http://www.connexionz.co.nz/

Recent announcements: click here

IPOs and Investment Opportunities

Financials 
 

Statement of Financial Performance
	2007	2006	2005	2004
Revenue
Sales	2,089,777	1,372,241	2,892,784	1,226,589
Interest received	1,214	3,485	3,330	1,389
Other	40,330	35,106	7,276	-
Total Revenue	2,131,321	1,410,832	2,903,390	1,227,978
Expenses
Cost of sales	-	-	-	-
Other expenses	2,969,016	1,568,871	2,462,901	1,696,615
EBITDA	(837,695)	(158,039)	440,489	(468,637)
Depreciation	62,328	52,286	70,922	112,504
Amortisation	44,464	46,311	240,292	259,354
EBIT	(944,487)	(256,636)	129,275	(840,495)
Interest expense	30,976	12,171	13,076	30,868
Taxation	-	-	-	-
NPAT	(975,463)	(268,807)	116,199	(871,363)
Statement of Financial Position
	2007	2006	2005	2004
Assets
Current Assets
Bank and cash	9,055	5,667	118,193	-
Receivables	967,947	328,816	188,001	269,031
Inventory	53,427	61,632	96,189	25,000
Other	37,181	22,480	142,903	62,679
Total Current Assets	1,067,610	418,595	545,286	356,710
Non Current Assets
Property Plant & Equipment	188,517	79,905	127,826	149,226
Investments	-	-	-	-
Goodwill & Intangibles	-	-	-	-
Other	274,785	22,588	68,899	319,295
Total Non Current Assets	463,302	102,493	196,725	468,521
Total Assets	1,530,912	521,088	742,011	825,231
Liabilities
Current Liabilities
Payables	1,100,819	117,480	71,798	272,431
Short term borrowings	146,231	89,672	67,561	174,884
Other	80,203	68,895	88,804	52,167
Total Current Liabilities	1,327,253	276,047	228,163	499,482
Non Current Liabilities
Long-term Borrowings	-	-	-	-
Other	-	-	-	-
Total Non Current Liabilities	-	-	-	-
Total Liabilities	1,327,253	276,047	228,163	499,482
Net Assets	203,659	245,041	513,848	325,749
Statement of Cashflows
	2007	2006	2005	2004
Cash flows from operating activities
Operating revenues	1,666,783	1,340,440	2,981,307	1,166,277
Operating expenses	1,949,907	1,520,712	2,719,596	1,532,144
	(283,124)	(180,272)	261,711	(365,867)
Cash flows from investing activities
Inflows	-	50,000	-	10,000
Outflows	513,123	4,365	89,418	3,123
	(513,123)	45,635	(89,418)	6,877
Cash flows from financing activities
Inflows	743,076	-	52,000	220,476
Outflows	-	-	78,777	63,226
	743,076	-	(26,777)	157,250
Net Increase (decrease)	(53,171)	(134,637)	145,516	(201,740)
Opening cash	(84,005)	50,632	(94,884)	106,856
Closing cash	(137,176)	(84,005)	50,632	(94,884)
	Analysis
Per share figures
Dividend/shares	-	-	-	-
NPAT/shares (EPS)	(0.05)	(0.02)	0.01	(0.05)
EBITDA/shares	(0.04)	(0.01)	0.03	(0.03)
Net Assets/shares	0.01	0.01	0.03	0.02
Profitability
ROA	-63.72%	-51.59%	15.66%	-105.59%
Equity multiplier	7.5	2.1	1.4	2.5
ROE	-478.97%	-109.70%	22.61%	-267.50%
ROavgE	-434.80%	-70.84%	27.68%	-
Net profit margin	-45.77%	-19.05%	4.00%	-70.96%
Liquidity
Net working capital	(259,643)	142,548	317,123	(142,772)
Current ratio	0.80	1.52	2.39	0.71
Quick ratio	0.76	1.29	1.97	0.66
Working capital ratio	-0.17	0.27	0.43	-0.17
Capital structure
Debt to equity	6.52	1.13	0.44	1.53
Interest coverage	-30.49	-21.09	9.89	-27.23
Shares	20,103,843	17,069,192	17,069,192	15868692
Dividends paid	-	-	-	-
Dividend payout ratio	0%	0%	0%	0%
Growth rates
Revenue	51.07%	-51.41%	136.44%
EBITDA	430.06%	-135.88%	-193.99%
NPAT	262.89%	-331.33%	-113.34%
Total assets	193.79%	-29.77%	-10.08%
Net assets	-16.89%	-52.31%	57.74%
g = (ROE*(1-DPR))	-478.97%	-109.70%	22.61%	-267.50%
Other
Share price (17-August-07)	$            0.20	Avg 4 yr growth rate (NPAT)		-60.59%
Market cap	$    4,020,769	Cmpdg 4 yr growth rate (NPAT)		2.86%
Enterprise value (EV)	$    5,348,022	Avg 4 yr growth rate (NA)		-3.82%
EV/EBITDA	-6.38	Cmpdg 4 yr growth rate (NA)		-11.08%
P/E Ratio	-4.12
P/NA ratio	19.74
Dividend yield	0.00%
Earnings yield (E/P)	-24%

Trading over the last year

Other

Last updated: 14-11-2007

Company balance date: 31 March

Supplementary Information

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