AI1 (Formerly DC2) has shifted their core business and structure over the last 12 months. Again shifting here towards supplying defence SMEs their secure could storage. They have solid ongoing contracts, a decent data centre and a strong team with an acquisition of Thomas Cyber last year which came with their CEO an experienced cyber expert.
Balance sheet is strong and revenues steadily growing at a double digit rate. They have historically had quite a high cash burn which they are reducing to keep operations sustainable. If, only if, they can land themselves as the ‘go to’ defence SME data host, the contracts will be longer term and of higher value given what is at stake.
Recent cap raise gets them into a steady position as long as cash doesn’t get burnt through, the asset sale assists with giving them a cash runway to profitability.
The next 12 months will be telling to see if they can onboard defence SMEs. Given the people on board, I’d expect strong industry links to be beneficial here.
GLTAH.
AI1 Price at posting:
2.0¢ Sentiment: Hold Disclosure: Held
