So as WAAAX fades into a distant memory which companies are showing great potential to be a part of the next Australian tech acronym? We take a quick look at three TAMIM holdings that we feel could make the ASX 100.

 

Specialising in advanced software applications for the Wealth Management and Funds Administration sectors, Bravura Solutions Ltd (ASX: BVS) has emerged as a potential turnaround story which we flagged back in November.

Following the overhaul of the underperforming board, experienced CEO Andrew Russell and independent non-executive chairman Matthew Quinn have seen an impressive turnaround in results. In the first half the company saw Revenue increased by a modest 7.35% to $127 million compared to the prior period. Impressively, the company posted operating earnings (EBITDA) of $7.9 million, up $11.5 million. Furthermore the company has forecasted annualised FY24 cost cuts of $40 million. Including $27 million already delivered in the first half. Furthermore Bravura management announced that they would be upgrading FY24 EBITDA guidance to $18 million to $22 million from $10 million to $15 million.

At the forefront of the green energy transition, Gentrack Group Ltd (ASX: GTK) provides innovative cleantech solutions to utilities worldwide.

Gentrack boasts a diverse clientele including prominent names like EnergyAustralia, Npower, Melbourne Airport, Sydney Airport, Gatwick, Schiphol, Orlando International Airport, and Auckland International Airport Limited (ASX: AIA).

Gentrack currently operates in two business segments, utility billing software and airport management software with the utility segment making up 87% of group revenue for the 2023 financial year. The company reported strong full year results back in November with Revenue increasing 34.5% to NZ $169 million and net profit after tax of NZ $10 million up from a loss of $3.3 million in the 2022 financial year.

The company was able to upgrade its revenue guidance for FY24, from the prior guidance of being between $157m to $160m to being at least in line with FY23 revenue at around $170m. This is despite the loss of ‘one off’ revenues of $27.6m from insolvent UK customers. With increased revenue guidance, EBITDA is expected to be between $20.5 million and $25.5 million.

RPMGlobal Holdings (ASX: RUL) is a global provider of Software licensing, consulting, implementation and support; and Technical, advisory and training services to the mining industry.

The company is driven by its purpose to advance the mining industry towards a safer, more efficient and a more sustainable future through the delivery of innovative software solutions and deep domain mining expertise. ​

The first half of the 2024 financial year set a new record for the company in terms of revenue and profitability and was in-line with expectations. The company is at the tailend of a transition from perpetual licensing to a subscription model within its software business. This has previously hidden the improvement in the company’s financial results as it has moved away from larger and lumpier revenue to recurring subscription. The change from perpetual to subscription licensing is now providing both operating and financial leverage to the business.

Looking forward the company’s revenue is expected to be in the range of $110 million to $115 million with EBITDA between $21.5 million to $23.5 million.

The takeover offers for TAMIM holdings continue to roll in.

Last week, two of our holdings were subject to takeover offers. Task Group Holdings (ASX: TSK) received a proposal from PAR Technology Corporation (NYSE: PAR) to acquire 100% of the company valuing it at $0.81 per share, a 103% premium to its closing share price prior to the offer. TASK Group is a leading provider of technology solutions enabling its global hospitality clients to maximise their customer relationships in an increasingly digital world. Via its Plexure division, Task has a significant contract with McDonalds (NYSE: MCD) where it provides technology enhancing customer engagement and growth in active users.

In addition to Task, QANTM Intellectual Property (ASX: QIP) received a non-binding indicative offer from Adamantem Capital to acquire the business for $1.817 per share.

This follows on from the prior non-binding offer from Rouse International Holdings Limited a UK-based international IP firm. It is the QANTM IP’s board’s intention to unanimously recommend that shareholders vote in favour of the transaction with the bid a 58.0% premium to close price on 26 February 2024 prior to the initial Rouse Indicative Proposal. QANTM IP is the owner of a group of global leading intellectual property (IP) services businesses with key brands Davies Collison Cave, DCC Advanz Malaysia, Davies Collison Cave Law, FPA Patent Attorneys, and Sortify.tm Ltd. The company had recently reported strong first half results with underlying EBITDA increasing 25.7% to $17.3 million and earnings per share exploding 114% to 5.29 cents.

In the wake of the dissolution of the WAAAX acronym, the ASX tech landscape is witnessing a transformative shift. Despite this evolution, the Australian market continues to showcase promising tech stocks with robust earnings and growth potential. Companies like Bravura Solutions Ltd, Gentrack Group, and RPMGlobal Holdings have emerged in our opinion as frontrunners poised to shape the future of the ASX 100. Moreover, the fertile takeover market adds further dynamism, exemplified by recent offers for Task Group Holdings and QANTM Intellectual Property Ltd. As the era of WAAAX draws to a close, the future of Australian tech is bright. ​