Recent Insider Transactions • Mar 05
Non-Executive Director recently bought AU$150k worth of stock On the 27th of February, Stephen Edward Johnston bought around 500k shares on-market at roughly AU$0.30 per share. This transaction amounted to 2.0% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Major Estimate Revision • Mar 03
Consensus EPS estimates fall by 74% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from AU$109.7m to AU$102.9m. EPS estimate also fell from AU$0.0342 per share to AU$0.0088 per share. Net income forecast to shrink 29% next year vs 48% growth forecast for Software industry in Australia . Consensus price target down from AU$0.80 to AU$0.32. Share price fell 16% to AU$0.29 over the past week. Reported Earnings • Feb 27
First half 2026 earnings released: AU$0.002 loss per share (vs AU$0.023 profit in 1H 2025) First half 2026 results: AU$0.002 loss per share (down from AU$0.023 profit in 1H 2025). Revenue: AU$49.6m (down 14% from 1H 2025). Net loss: AU$290.6k (down 107% from profit in 1H 2025). Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Australia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has fallen by 28% per year, which means it is performing significantly worse than earnings. New Risk • Feb 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (AU$43.7m market cap, or US$30.9m). Announcement • Feb 12
COSOL Limited to Report First Half, 2026 Results on Feb 25, 2026 COSOL Limited announced that they will report first half, 2026 results on Feb 25, 2026 Buy Or Sell Opportunity • Jan 29
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 6.2% to AU$0.46. The fair value is estimated to be AU$0.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 3.6%. For the next 3 years, revenue is forecast to grow by 2.3% per annum. Earnings are also forecast to grow by 5.6% per annum over the same time period. Buy Or Sell Opportunity • Dec 08
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 24% to AU$0.46. The fair value is estimated to be AU$0.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 3.6%. For the next 3 years, revenue is forecast to grow by 2.3% per annum. Earnings are also forecast to grow by 5.6% per annum over the same time period. Buy Or Sell Opportunity • Nov 06
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to AU$0.46. The fair value is estimated to be AU$0.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 3.6%. For the next 3 years, revenue is forecast to grow by 2.7% per annum. Earnings are also forecast to grow by 8.2% per annum over the same time period. Price Target Changed • Oct 31
Price target decreased by 11% to AU$0.82 Down from AU$0.93, the current price target is an average from 2 analysts. New target price is 70% above last closing price of AU$0.48. Stock is down 48% over the past year. The company is forecast to post earnings per share of AU$0.043 for next year compared to AU$0.044 last year. Upcoming Dividend • Sep 25
Upcoming dividend of AU$0.012 per share Eligible shareholders must have bought the stock before 02 October 2025. Payment date: 20 October 2025. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of Australian dividend payers (5.5%). Higher than average of industry peers (0.6%). Announcement • Sep 02
COSOL Limited, Annual General Meeting, Oct 30, 2025 COSOL Limited, Annual General Meeting, Oct 30, 2025. Announcement • Aug 22
Cosol Limited Announces Fully Franked Dividend for the Twelve Months Ended June 30, 2025, Payable on October 20, 2025 COSOL Limited announced fully franked dividend of AUD 0.01168000 per ordinary share for the twelve months ended June 30, 2025. The record date is 3 October 2025, ex-date is 2 October 2025 and Payment Date is October 20, 2025. Reported Earnings • Aug 20
Full year 2025 earnings: Revenues in line with analyst expectations Full year 2025 results: Revenue: AU$116.8m (up 15% from FY 2024). Net income: AU$7.89m (down 7.3% from FY 2024). Profit margin: 6.8% (down from 8.4% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in Australia. Price Target Changed • Aug 12
Price target decreased by 8.4% to AU$0.93 Down from AU$1.01, the current price target is an average from 2 analysts. New target price is 57% above last closing price of AU$0.59. Stock is down 44% over the past year. The company is forecast to post earnings per share of AU$0.041 for next year compared to AU$0.05 last year. Buy Or Sell Opportunity • Jul 23
Now 21% overvalued Over the last 90 days, the stock has fallen 18% to AU$0.61. The fair value is estimated to be AU$0.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Buy Or Sell Opportunity • Jun 26
Now 22% overvalued Over the last 90 days, the stock has fallen 23% to AU$0.62. The fair value is estimated to be AU$0.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Earnings per share has grown by 12%. Revenue is forecast to grow by 25% in 2 years. Earnings are forecast to grow by 37% in the next 2 years. Major Estimate Revision • Jun 06
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from AU$123.2m to AU$119.0m. EPS estimate also fell from AU$0.051 per share to AU$0.044 per share. Net income forecast to grow 8.7% next year vs 37% growth forecast for Software industry in Australia. Consensus price target down from AU$1.20 to AU$1.08. Share price fell 25% to AU$0.59 over the past week. Price Target Changed • Jun 05
Price target decreased by 12% to AU$1.08 Down from AU$1.23, the current price target is an average from 2 analysts. New target price is 64% above last closing price of AU$0.66. Stock is down 44% over the past year. The company is forecast to post earnings per share of AU$0.047 for next year compared to AU$0.05 last year. Announcement • Jun 05
COSOL Limited to Report Fiscal Year 2025 Results on Aug 20, 2025 COSOL Limited announced that they will report fiscal year 2025 results on Aug 20, 2025 Upcoming Dividend • Apr 03
Upcoming dividend of AU$0.01 per share Eligible shareholders must have bought the stock before 10 April 2025. Payment date: 12 May 2025. Payout ratio is a comfortable 47% and the cash payout ratio is 95%. Trailing yield: 3.2%. Lower than top quartile of Australian dividend payers (6.5%). Higher than average of industry peers (0.6%). New Risk • Feb 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$158.3m (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (95% cash payout ratio). Market cap is less than US$100m (AU$158.3m market cap, or US$99.7m). Declared Dividend • Feb 21
First half dividend of AU$0.01 announced Shareholders will receive a dividend of AU$0.01. Ex-date: 10th April 2025 Payment date: 12th May 2025 Dividend yield will be 2.7%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (47% earnings payout ratio) but not adequately covered by cash flows (95% cash payout ratio). The dividend has increased by an average of 24% per year over the past 4 years and payments have been stable during that time. EPS is expected to grow by 78% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 20
First half 2025 earnings released: EPS: AU$0.023 (vs AU$0.022 in 1H 2024) First half 2025 results: EPS: AU$0.023 (up from AU$0.022 in 1H 2024). Revenue: AU$57.8m (up 18% from 1H 2024). Net income: AU$4.05m (up 12% from 1H 2024). Profit margin: 7.0% (down from 7.4% in 1H 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Australia. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 9% per year. Announcement • Feb 12
COSOL Limited to Report First Half, 2025 Results on Feb 19, 2025 COSOL Limited announced that they will report first half, 2025 results on Feb 19, 2025 New Risk • Jan 22
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$154.7m (US$97.2m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Announcement • Dec 11
COSOL Limited (ASX:COS) acquired Toustone Pty Ltd. COSOL Limited (ASX:COS) agreed to acquire Toustone Pty Ltd for AUD 22.8 million on December 4, 2024. A cash consideration of AUD 8 million will be paid by COSOL Limited. The consideration consists of 4.53 million common equity of COSOL Limited to be issued for common equity of Toustone Pty Ltd. COSOL Limited will pay an earnout/contingent payment of AUD 10.43 million cash. As part of consideration, AUD 18.43 million is paid towards common equity of Toustone Pty Ltd. Completion under the agreement is subject to conditions precedent ordinarily found in similar acquisition transactions
The expected completion of the transaction is early December 2024.
COSOL Limited (ASX:COS) completed the acquisition of Toustone Pty Ltd on December 9, 2024. Announcement • Dec 04
COSOL Limited (ASX:COS) agreed to acquire Toustone Pty Ltd for AUD 22.8 million. COSOL Limited (ASX:COS) agreed to acquire Toustone Pty Ltd for AUD 22.8 million on December 4, 2024. A cash consideration of AUD 8 million will be paid by COSOL Limited. The consideration consists of 4.53 million common equity of COSOL Limited to be issued for common equity of Toustone Pty Ltd. COSOL Limited will pay an earnout/contingent payment of AUD 10.43 million cash. As part of consideration, AUD 18.43 million is paid towards common equity of Toustone Pty Ltd. Completion under the agreement is subject to conditions precedent ordinarily found in similar acquisition transactions
The expected completion of the transaction is early December 2024. New Risk • Nov 19
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: AU$151.7m (US$98.5m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Significant insider selling over the past 3 months (AU$138k sold). Market cap is less than US$100m (AU$151.7m market cap, or US$98.5m). Announcement • Nov 14
COSOL Limited Announces Board Changes COSOL Limited announced that Managing Director Ben Buckley resigns. Ben has been integral in driving COSOL's engagement with shareholders and the investment market and its business acquisitions, with responsibilities focused on investor relations and external communications, strategy development and M&A activities. As COSOL moves into the next phases of the OneCOSOL transformation program it is considered that the MD and CEO roles be combined and Ben has taken the opportunity to focus on his other extensive business interests. Ben will remain with COSOL as a part-time consultant to work on strategic initiatives. The Board thanks Ben for his efforts and significant achievements as Managing Director for the past 4 years. Chief Executive Officer Scott McGowan is appointed as Managing Director and Chief Executive Officer. Scott has been operating the business as CEO since COSOL's listing in 2020 and this appointment reinforces its commitment to the next phases of the OneCOSOL program and reflects his leadership in driving the growth and strategy of COSOL. Mr. McGowan's remuneration arrangements will remain unchanged at this time and COSOL will inform the market of any future change. Non-Executive Director Grant Pestell has decided not to stand for re-election due to his extensive commitments as a Director of leading Perth commercial and corporate law firm MPH Lawyers and other directorships, and retires as a Non-Executive Director as at the commencement of the AGM. Grant has provided exceptional service to COSOL as a Director for over 5 years, and the Board thanks Grant for his valuable contribution to the growth and development of COSOL. As a result of Mr. Pestell's retirement, Resolution 3 regarding his re-election as a Director which was to be considered at COSOL's 2024 AGM is withdrawn. The withdrawal of Resolution 3 does not affect the validity or any proxy votes already submitted or the other business to be conducted at the AGM, and the remaining resolutions will be put to shareholders as planned. New Risk • Oct 14
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (AU$138k sold). Upcoming Dividend • Oct 10
Upcoming dividend of AU$0.014 per share Eligible shareholders must have bought the stock before 17 October 2024. Payment date: 04 November 2024. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Australian dividend payers (6.0%). Higher than average of industry peers (0.3%). Recent Insider Transactions • Oct 08
MD & Director recently sold AU$138k worth of stock On the 2nd of October, Benjamin Buckley sold around 150k shares on-market at roughly AU$0.92 per share. This transaction amounted to 23% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Announcement • Sep 19
COSOL Limited, Annual General Meeting, Nov 14, 2024 COSOL Limited, Annual General Meeting, Nov 14, 2024. Location: brisbane Australia Major Estimate Revision • Aug 27
Consensus EPS estimates fall by 16% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from AU$127.1m to AU$117.8m. EPS estimate also fell from AU$0.067 per share to AU$0.056 per share. Net income forecast to grow 26% next year vs 61% growth forecast for Software industry in Australia. Consensus price target down from AU$1.27 to AU$1.15. Share price fell 14% to AU$0.98 over the past week. Announcement • Aug 23
the Directors of COSOL Limited Announces Final Dividend for the Year Ended June 30, 2024, Payable on November 4, 2024 The directors of COSOL Limited announced final dividend of AUD 0.01390000 per ordinary share for the current financial year ended June 30, 2024. The dividend will be fully franked. The record date is 18 October 2024, ex-date is 17 October 2024 and Payment Date is November 4, 2024. Declared Dividend • Aug 23
Final dividend of AU$0.014 announced Shareholders will receive a dividend of AU$0.014. Ex-date: 17th October 2024 Payment date: 4th November 2024 Dividend yield will be 2.3%, which is higher than the industry average of 0.6%. Sustainability & Growth The dividend has increased by an average of 35% per year over the past 3 years and payments have been stable during that time. Price Target Changed • Aug 22
Price target decreased by 9.1% to AU$1.15 Down from AU$1.27, the current price target is an average from 2 analysts. New target price is 21% above last closing price of AU$0.95. Stock is up 17% over the past year. The company is forecast to post earnings per share of AU$0.056 for next year compared to AU$0.05 last year. Reported Earnings • Aug 21
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: AU$0.05. Revenue: AU$102.0m (up 36% from FY 2023). Net income: AU$8.52m (up 6.7% from FY 2023). Profit margin: 8.4% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 5.3%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Software industry in Australia. Announcement • May 08
COSOL Limited (ASX:COS) completed the acquisition of Core Asset Co Pty Ltd from Spiral X Pty Ltd. COSOL Limited (ASX:COS) entered into a binding Share Purchase Agreement to acquire Core Asset Co Pty Ltd from Spiral X Pty Ltd for AUD 6.1 million on April 19, 2024. COSOL will pay the vendor approximately AUD 2.9 million in cash and a further AUD 2.5 million in resulting in the issue of 2,538,844 COSOL shares. A further earn-out consideration of AUD 700,000 is payable to the vendor subject to EBITDA performance hurdles being met. Core Asset founder Joshua Old will join COSOL’s senior leadership team and continue as Chief Executive Officer of the Core Asset business within the COSOL Group Immediately Earnings Per Share accretiveCOSOL Limited (ASX:COS) completed the acquisition of Core Asset Co Pty Ltd from Spiral X Pty Ltd on May 6, 2024. Upcoming Dividend • Apr 04
Upcoming dividend of AU$0.01 per share Eligible shareholders must have bought the stock before 11 April 2024. Payment date: 13 May 2024. Payout ratio is a comfortable 46% and the cash payout ratio is 96%. Trailing yield: 2.5%. Lower than top quartile of Australian dividend payers (6.2%). Higher than average of industry peers (0.5%). Announcement • Mar 01
COSOL Limited Announces Management Changes COSOL Limited announced that Mr. Ben Secrett has been appointed as Group Company Secretary effective 1 March 2024. Mr. Secrett has joined COSOL in the role of General Manager - Legal and Commercial, and brings to the role more than 15 years of experience as a legal, corporate advisory and governance professional. He has worked for top tier law firms in their corporate practices, as well as for a number of Australian and foreign listed entities in the resources and technology sectors. Mr. Secrett holds a Bachelor of Economics from the University of Western Australia, a Juris Doctor law degree from the University of Notre Dame Australia, and a Graduate Diploma of Applied Corporate Governance from the Governance Institute of Australia. Ms Lisa Wynne has resigned from the role of Company Secretary to pursue other opportunities. During her term, Ms Wynne provided valuable transaction support to COSOL as it undertook a number of acquisitions. Declared Dividend • Feb 28
First half dividend of AU$0.01 announced Shareholders will receive a dividend of AU$0.01. Ex-date: 11th April 2024 Payment date: 13th May 2024 Dividend yield will be 2.4%, which is higher than the industry average of 0.6%. Sustainability & Growth Dividend is covered by earnings (46% earnings payout ratio) but not covered by cash flows (103% cash payout ratio). The dividend has increased by an average of 35% per year over the past 3 years and payments have been stable during that time. EPS is expected to grow by 60% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Upcoming Dividend • Oct 12
Upcoming dividend of AU$0.015 per share at 2.9% yield Eligible shareholders must have bought the stock before 19 October 2023. Payment date: 06 November 2023. Payout ratio is a comfortable 45% and the cash payout ratio is 84%. Trailing yield: 2.9%. Lower than top quartile of Australian dividend payers (7.2%). Higher than average of industry peers (0.6%). Recent Insider Transactions Derivative • Oct 08
MD & Director exercised options to buy AU$356k worth of stock. On the 5th of October, Benjamin Buckley exercised 1.19m options at around AU$0.52, then sold 775.00k of them at AU$0.64 each and kept the remainder. Since June 2023, Benjamin has owned 235.00k shares directly. Company insiders have collectively sold AU$703k more than they bought, via options and on-market transactions in the last 12 months. Announcement • Sep 22
COSOL Limited, Annual General Meeting, Nov 16, 2023 COSOL Limited, Annual General Meeting, Nov 16, 2023. Announcement • Sep 06
COSOL Limited (ASX:COS) completed the acquisition of AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd. COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 29 million on August 3, 2023. Under the terms, COSOL will pay for AssetOn, AUD 14 million in cash, issue AUD 3 million in shares and depending on the future performance of AssetOn, will pay earnout consideration of up to a further AUD 6 million (up to 50% of which payment being payable in shares, at COSOL’s election, with the balance payable in cash). For OnPlan, COSOL will pay AUD 4 million in cash, issue AUD 1 million in shares and an earnout consideration of AUD 1 million in cash. Shares issued as upfront consideration will be subject to voluntary escrow until the end of FY24. The upfront cash component will be funded through an institutional placement of 19.6 million new fully paid ordinary shares to raise gross proceeds of AUD 15 million and a AUD 4.6 million drawdown from COSOL’s expanded debt facilities. Earnout consideration, to the extent paid, will be funded from a combination of operating cash flow and available debt capacity, or a portion paid in scrip at COSOL’s election. The combined group reported revenues of AUD 28 million for the financial year 2023.Completion of the transaction is subject to COSOL having undertaken an equity raising of at least AUD 11 million all other necessary regulatory, shareholder and other approvals being obtained. There will be no changes to COSOL’s Board of Directors or senior management as a result of the acquisition. COSOL will appoint nominees to the Boards of AssetOn and OnPlan. The transaction is expected to complete by September 1, 2023. The acquisition is expected to be low double-digit earnings per share accretive on a pro forma basis in FY24.COSOL Limited (ASX:COS) completed the acquisition of AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 28.9 million on September 4, 2023. In conjunction with a successful capital raise of AUD 15 million to part fund the transaction COSOL is also pleased to report an expansion of its debt facilities with Westpac Banking Corporation to a total of AUD 25 million, an increase of AUD 8 million over the existing facility put in place in August 2022. This has been completed as part of the total acquisition funding arrangements. Price Target Changed • Aug 24
Price target increased by 7.1% to AU$1.14 Up from AU$1.06, the current price target is an average from 2 analysts. New target price is 40% above last closing price of AU$0.81. Stock is up 32% over the past year. The company is forecast to post earnings per share of AU$0.061 for next year compared to AU$0.054 last year. Announcement • Aug 23
COSOL Limited Declares Final Divided for the Year Ended June 30, 2023, Payable on 6 November 2023 The directors of COSOL Limited declared a final dividend of $0.0146 per ordinary share at record date, payable to all ordinary shareholders for the current financial year ended June 30, 2023. The dividend will be fully franked. The record date for entitlements to this dividend will be 20 October 2023 with payment on 6 November 2023. Reported Earnings • Aug 23
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: AU$0.054 (up from AU$0.04 in FY 2022). Revenue: AU$75.2m (up 56% from FY 2022). Net income: AU$7.99m (up 44% from FY 2022). Profit margin: 11% (in line with FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.2%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Australia. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. New Risk • Aug 11
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (13% increase in shares outstanding). Market cap is less than US$100m (AU$138.3m market cap, or US$90.2m). Announcement • Aug 05
COSOL Limited has completed a Follow-on Equity Offering in the amount of AUD 15 million. COSOL Limited has completed a Follow-on Equity Offering in the amount of AUD 15 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 19,607,843
Price\Range: AUD 0.765
Transaction Features: Subsequent Direct Listing Announcement • Aug 04
COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 29 million. COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire AssetOn Group Pty Ltd and OnPlan Technologies Pty Ltd from Anthony Large Holding Co Pty Ltd, Burckhardt Investments Pty Ltd and Geoff Boon Holding Co Pty Ltd for AUD 29 million on August 3, 2023. Under the terms, COSOL will pay for AssetOn, AUD 14 million in cash, issue AUD 3 million in shares and depending on the future performance of AssetOn, will pay earnout consideration of up to a further AUD 6 million (up to 50% of which payment being payable in shares, at COSOL’s election, with the balance payable in cash). For OnPlan, COSOL will pay AUD 4 million in cash, issue AUD 1 million in shares and an earnout consideration of AUD 1 million in cash. Shares issued as upfront consideration will be subject to voluntary escrow until the end of FY24. The upfront cash component will be funded through an institutional placement of 19.6 million new fully paid ordinary shares to raise gross proceeds of AUD 15 million and a AUD 4.6 million drawdown from COSOL’s expanded debt facilities. Earnout consideration, to the extent paid, will be funded from a combination of operating cash flow and available debt capacity, or a portion paid in scrip at COSOL’s election. The combined group reported revenues of AUD 28 million for the financial year 2023.Completion of the transaction is subject to COSOL having undertaken an equity raising of at least AUD 11 million all other necessary regulatory, shareholder and other approvals being obtained. There will be no changes to COSOL’s Board of Directors or senior management as a result of the acquisition. COSOL will appoint nominees to the Boards of AssetOn and OnPlan. The transaction is expected to complete by September 1, 2023. The acquisition is expected to be low double-digit earnings per share accretive on a pro forma basis in FY24. New Risk • Jun 10
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 2.7% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (4.1% increase in shares outstanding). Market cap is less than US$100m (AU$108.5m market cap, or US$73.1m). Recent Insider Transactions • May 30
MD & Director recently sold AU$50k worth of stock On the 23rd of May, Benjamin Buckley sold around 65k shares on-market at roughly AU$0.77 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$828k more than they bought in the last 12 months. Upcoming Dividend • Apr 04
Upcoming dividend of AU$0.01 per share at 2.3% yield Eligible shareholders must have bought the stock before 11 April 2023. Payment date: 12 May 2023. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of Australian dividend payers (7.1%). Higher than average of industry peers (0.8%). Reported Earnings • Feb 23
First half 2023 earnings released: EPS: AU$0.022 (vs AU$0.019 in 1H 2022) First half 2023 results: EPS: AU$0.022 (up from AU$0.019 in 1H 2022). Revenue: AU$34.7m (up 54% from 1H 2022). Net income: AU$3.16m (up 22% from 1H 2022). Profit margin: 9.1% (down from 12% in 1H 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 36% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Jan 13
Insider recently sold AU$778k worth of stock On the 10th of January, Bradley Skeggs sold around 972k shares on-market at roughly AU$0.80 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Announcement • Nov 17
COSOL Limited Provides Revenue Guidance for the Six Months to 31 December 2022 and Fiscal Year 2023 COSOL Limited provided revenue guidance for the six months to 31 December 2022 and fiscal year 2023. First half revenue for the six months to 31 December 2022 is forecasted to be between $35 million and $36 million at 14% EBIT margin.The strong start to fiscal year 2023 follows a year of strong growth in fiscal year 2022, with revenue up 44% at $48.3 million and EBIT up40% at $8.1 million. NPAT was also up 38% at $5.5 million and EPS was 4.01 cents, up 31% on the previous year. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Director Gerald Strautins was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 30
Upcoming dividend of AU$0.01 per share Eligible shareholders must have bought the stock before 07 October 2022. Payment date: 07 November 2022. Payout ratio is a comfortable 48% and this is well supported by cash flows. Trailing yield: 3.1%. Lower than top quartile of Australian dividend payers (7.2%). Higher than average of industry peers (1.1%). Reported Earnings • Aug 24
Full year 2022 earnings released: EPS: AU$0.04 (vs AU$0.031 in FY 2021) Full year 2022 results: EPS: AU$0.04 (up from AU$0.031 in FY 2021). Revenue: AU$48.4m (up 44% from FY 2021). Net income: AU$5.53m (up 38% from FY 2021). Profit margin: 11% (in line with FY 2021). Announcement • Aug 04
COSOL Limited (ASX:COS) completed the acquisition of Work Management Solutions for AUD 8.6 million. COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire Work Management Solutions for AUD 9 million on June 23, 2022. COSOL will pay AUD 7 million on settlement and further AUD 2 million upon WMS business meeting certain performance hurdles in FY23. Payment of AUD 7 million comprises of AUD 4 million in cash and issue to the Vendors 5,660,378 new fully paid ordinary COSOL shares under agreement which will be subject to voluntary escrow until June 30, 2023. Key employees must remain with business to achieve earnout and remain significant shareholders in COSOL. Funding for acquisition will be from existing COSOL cash reserves and bank debt. Customary conditions precedent exist and we expect to close prior to June 30, 2022. The transaction is expected to complete with three weeks. The transaction is subject to adjustments. Acquisition is immediately EPS accretive.
COSOL Limited (ASX:COS) completed the acquisition of Work Management Solutions for AUD 8.6 million on August 3, 2022. The consideration for the acquisition comprises upfront consideration of AUD 3.67 million in cash. Announcement • Jul 21
COSOL Limited Appoints Anthony Stokes as Chief Financial Officer, Effective July 25, 2022 COSOL Limited announced the appointment of highly experienced finance executive Anthony Stokes as Chief Financial Officer, commencing 25 July 2022. Mr. Stokes' most recent position was General Manager, Financial Planning & Analysis at Virgin Australia, where he worked in senior roles since 2011 across finance, transformation and commercial roles. This included a key role in the sale process and transition to Bain Capital's ownership. He previously worked at KPMG in Deal Advisory Services with significant experience across mergers and acquisitions and equity capital markets transactions. He joins COSOL at a time of fast growth, both through the existing business units and strategic acquisitions that have built out the Company's service offer to the defence, mining, energy and infrastructure sectors. Mr. McGowan thanked outgoing CFO Andrew McVinish for his contribution and commitment to COSOL through the rapid growth phase and wished him well with his future career. Announcement • Jun 23
COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire Work Management Solutions for AUD 9 million. COSOL Limited (ASX:COS) entered into a binding share purchase agreement to acquire Work Management Solutions for AUD 9 million on June 23, 2022. COSOL will pay AUD 7 million on settlement and further AUD 2 million upon WMS business meeting certain performance hurdles in FY23. Payment of AUD 7 million comprises of AUD 4 million in cash and AUD 3 million in COSOL shares. The transaction is expected to complete with three weeks. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. 2 independent directors (3 non-independent directors). Independent Non-Executive Director Grant Pestell is the most experienced director on the board, commencing their role in 2019. Independent Non-Executive Director Gerald Strautins was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Reported Earnings • Feb 26
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: AU$0.019 (up from AU$0.014 in 1H 2021). Revenue: AU$22.6m (up 44% from 1H 2021). Net income: AU$2.60m (up 41% from 1H 2021). Profit margin: 12% (in line with 1H 2021). Revenue was in line with analyst estimates. Announcement • Feb 24
COSOL Limited Declares an Interim Dividend for the Half-Year Ended 31 December 2021, Payable on 14 April 2022 The board of directors of COSOL Limited have declared an interim dividend of $0.0092 per share payable to all ordinary shareholders for the half-year ended 31 December 2021. The dividend will be fully franked. The record date for the entitlements to this dividend will be 31 March 2022 with the payment 14 April 2022. Announcement • Nov 22
COSOL Limited (ASX:COS) completed the acquisition of Clarita Solutions Pty Ltd. COSOL Limited (ASX:COS) executed a Share Purchase Agreement to acquire Clarita Solutions Pty Ltd on November 8, 2021. The consideration consists of upfront consideration of AUD 7 million in cash and 7,951,123 COS shares, with earn-out consideration of up to AUD 3.75 million paid in cash or COS shares capped at 10 million shares subject to Clarita achieving performance hurdles based on future increases in audited EBIT over a 2 year period. The effective date of the acquisition is September 1, 2021. The cash component of the upfront consideration (and any Earn Out Consideration) will be satisfied out of COSOL’s existing cash reserves and bank debt and the shares to be issued to the Vendors will be issued under COSOL’s existing share placement capacity under ASX Listing Rule 7.1. For the FY 21, Clarita reported revenue of AUD 10.2 million and EBIT of AUD 2.251 million. Clarita’s existing key personnel (Key Employees) will remain involved in the business to continue to drive overall business performance and operational management and execution. There will be no changes to COSOL’s Board of Directors and senior management. The transaction is subject to, there being no change to Clarita’s capital structure, or any material adverse condition in relation to Clarita or its business, in the period prior to Completion; and consents being obtained from relevant Clarita contractual counterparties regarding the change in control of Clarita which will occur by virtue of the acquisition; and Certain conditions which are specific to Clarita’s particular business, which relate to COSOL having comfort as to continuity of service of the Key Employees and there being no debt (other than certain permitted exceptions) attributable to the business as at Completion. Completion is currently expected to occur in the week beginning November 22, 2021, within two weeks. The acquisition is accretive to earnings and will contribute positively to COSOL’s FY22 result.
COSOL Limited (ASX:COS) completed the acquisition of Clarita Solutions Pty Ltd on November 22, 2021. Recent Insider Transactions • Oct 08
Insider recently sold AU$787k worth of stock On the 5th of October, Bradley Skeggs sold around 1m shares on-market at roughly AU$0.64 per share. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Sep 23
Upcoming dividend of AU$0.01 per share Eligible shareholders must have bought the stock before 30 September 2021. Payment date: 29 October 2021. Trailing yield: 3.1%. Lower than top quartile of Australian dividend payers (5.4%). Higher than average of industry peers (0.9%). Announcement • Apr 15
Cosol Limited Announces Maiden Dividend for the First Half of 2021 COSOL Limited announced that it has paid its maiden dividend for the first half of 2021 to shareholders of $0.005 per share (fully franked). Is New 90 Day High Low • Mar 03
New 90-day low: AU$0.59 The company is down 22% from its price of AU$0.76 on 03 December 2020. The Australian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 8.0% over the same period. Is New 90 Day High Low • Feb 03
New 90-day low: AU$0.61 The company is down 2.0% from its price of AU$0.63 on 05 November 2020. The Australian market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 6.0% over the same period. Announcement • Dec 12
COSOL Limited Announces Executive Changes COSOL Limited announced that Ben Secrett has resigned as Company Secretary. Lisa Wynne has been appointed as Company Secretary effective immediately. Lisa has significant experience in the roles of Company Secretary and Chief Financial Officer with over fifteen years of board level experience with ASX & TSX listed companies. Is New 90 Day High Low • Oct 29
New 90-day low: AU$0.63 The company is down 9.0% from its price of AU$0.69 on 31 July 2020. The Australian market is up 2.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 20% over the same period. Announcement • Oct 16
COSOL Limited (ASX:COS) completed the acquisition of Addons, Inc. from Max Rogers. COSOL Limited (ASX:COS) entered into an agreement to acquire Addons, Inc. from Max Rogers for $5.4 million on October 6, 2020. At completion, COSOL will pay $1.5 million in cash and will issue 4.27 million new fully paid ordinary COSOL shares to the Vendor (which will be subject to voluntary escrow until December 31, 2021). Depending on the future performance of the AddOns business, the Vendor will also be entitled to up to 2 further instalments of deferred consideration. The Earn Out Consideration will be determined having regard to each of the 12 month periods ended December 31, 2021 and December 31, 2022 and will only be payable if: the Vendor has remained continually employed in the business throughout that Relevant Period (subject to certain permitted exceptions); and AddOns’ audited EBITDA meets or exceeds certain thresholds in the year ended December 31, 2020 and in each Relevant Period, as follows: 2020: $0.81 million; 2021: $1.1 million; 2022: $1.2 million. An instalment of Earn Out Consideration will be payable based on the extent to which AddOns’ EBITDA in a Relevant Period exceeds the base EBIDTA figure established for 2020, with overall earn out payments not to exceed $1.75 million in the aggregate. At least 50% of any Earn Out Consideration will be satisfied in shares provided that COSOL may elect to increase that percentage (capped at 5 million shares). As part of the acquisition COSOL will gain exclusive use and ownership of AddOns’ extensive portfolio of proprietary digital IP used to support its clients, including AddOns’ Evergreen suite for software upgrades and on-going managed services. The upfront and earn-out cash consideration will be funded from existing cash reserves and/or financing facilities. The shares to be issued in connection with the acquisition will be issued out of COSOL’s existing share placement capacity. There will be no changes to COSOL’s Board of Directors and senior management, nor any changes to the senior management of COSOL Australia Pty Ltd, as a result of the acquisition. Max Rogers, the sole shareholder and President of AddOns, will continue to drive and manage the North American operations. All current staff of AddOns are to be retained. COSOL Limited announced the appointment of Ben Buckley to the Board of COSOL Limited and the position of Managing Director, effective from October 6, 2020. Buckley has been an advisor to the Board of COSOL Limited since its inception and will assume responsibility for ongoing integration, cross business unit synergy exploitation and the pursuit of further acquisition opportunities. Completion of the acquisition is subject to a normal range of conditions precedent, each of which is able to be waived by COSOL should it choose to do so. Those conditions comprise: there being no change to AddOns’ capital or debt capital structure, or any material adverse condition in relation to AddOns, in the period prior to completion; all security interests over AddOns’ assets being discharged prior to completion; consents being obtained from relevant AddOns contractual counterparties regarding the change in control of AddOns which will occur by virtue of the acquisition; and certain conditions which are specific to AddOns’ particular business, which relate to COSOL having comfort as to continuity of service of key employees arrangements with a former shareholder, the tax status of AddOns and there being no debt attributable to the business as at completion. ASX has confirmed that ASX Listing Rules 11.1.2 or 11.1.3 do not apply to the acquisition. COSOL does not intend to seek and obtain shareholder approval for the acquisition. The Agreement includes customary terms and conditions. The effective date of the acquisition is September 1, 2020, with completion currently expected to occur in the week beginning October 12, 2020. subject to the satisfaction of the conditions precedent set out in the attached Schedule. The transaction is accretive to earnings and will contribute positively to COSOL Limited’s FY21 result.
COSOL Limited (ASX:COS) completed the acquisition of the acquisition of Addons, Inc. from Max Rogers on October 15, 2020.