(MENAFN- ProactiveInvestors)
() is in the final stage of its transformation into a revenue generating IT solutions provider soon to be re-named Cirrus Networks with the company seeking to raise up to $5 million through its prospectus.
Such is likely to be demand for stock the company may accept oversubscriptions of up to $2 million. The prospectus offer provides investors can acquire shares without paying brokerage.
Liberty is offering 100 million shares at $0.03 each to raise $3 million.
Cornerstone support has already been received and the company is targeting to raise $3.5 million.
Already Cirrus Networks has generated revenue of $10.3 million in the year-to-date ending 31st March 2015.
To be re-named Cirrus Networks Holdings Limited (ASX:CNW) at next week’s general meeting the company has a proven revenue generating model and will be focused on growth with continuing rapid revenue expansion.
Cirrus Networks
Cirrus Networks is an IT integrator that provides computing systems for clients by combining hardware and software products from multiple vendors.
It achieves this by helping business understand their technology needs and implement solutions that are world-leading best of breed cost effective and efficient for long-term operational gain.
The company has established excellent business relationships with its blue chip client base and is rolling out the next phase of its business plan to drive growth by increasing its high margin product offerings across the board.
It has also identified further building blocks to focus on high annuity driven services to continue to expand upon.
Expansion opportunities are present in Eastern Australian States Singapore and the rest of Asia.
Analysis
The transformation into an IT systems integrator takes into the growing Australian IT sector.
Indeed Australian IT spend in 2014 was $77 billion - $29.7 billion of which was spent on services.
The 2014 APAC IT spend was $767 billion and is expected to grow to $933 billion by 2017.
Cirrus Networks has already carved itself a part of a growing pie having already generated revenues of $10.3 million in the nine months to 31st March 2015.
This is cloud based which serves to drive down costs for clients. Around 60% of the gross margin increase flow through to the EBITDA line for Cirrus.
It has achieved record quarter on quarter and year on year revenue growth.
To top this off its plan to drive growth by increasing high margin offerings. Cirrus was named second fastest growing tech company in Australia for 2015 by Rising Star.
Based on a revenue comparison Liberty/Cirrus could in the not too distant future have a forward market cap valuation closer to $28 million than current $10m and as high as $84 million taking a line through its peers.
Proactive Investors Australia is the market leader in producing news articles and research reports on ASX emerging companies with distribution in Australia UK North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.