Dubber Corporation Limited (ASX: DUB) is an IT company domiciled in Melbourne, Australia. It provides a call and communication recording SaaS platform which helps in recording calls, manages them and accesses them with advanced functionality. The company was founded in 2011 by Mr. Adrian Di Pietrantonio, Mr. James Slaney, and Mr. Steve McGovern, and went live in 2014. DUB got listed on ASX in March 2015.
Mr. Steve McGovern is the Chief Executive Officer (CEO) as well as the Managing Director of the company. He has an experience of about 25 years in various fields like telecom, media sales, pay TV, etc. He is also a senior executive member of many domestic and international companies and the Director of Linius Technologies Limited since April 2016.
As on 30 June 2018, he held 5,944,696 ordinary shares, 750,000 performance rights with milestone 1 for a value of A$0.36 per right which expired on 31 December 2018 and 750,000 performance rights with milestone 2 for a value of A$0.36 per right expiring on 30 June 2019. The performance rights allow the conversion to fully paid ordinary shares for nil cash consideration. All these shares and rights are held indirectly by him. During FY18, he attended all 12 director meetings.
Mr. McGovern is entitled to an annual salary of A$240,000 along with statutory superannuation. The remuneration package involves fixed remunerations including base salary, employer contributions to superannuation funds, and non-cash benefits. The variable portion of remuneration involves performance rights.
In FY18, Mr. McGovern received his annual salary of A$240,000, long term benefits including annual and long service leave of A$11,982, superannuation benefit of A$22,800, and share-based payment of A$244,360. He was also paid a bonus of A$150,000 for achieving key performance indicators as determined by the Board on a six-monthly basis. His total remuneration for FY18 was A$669,142 which was 335,816 in FY17. The remuneration was based on his performance of 59%, consisting of 37% options, rights or shares.
During the year, he also received 250,000 ordinary shares against the exercise of unlisted options at 40 cents each issued on 29 December 2015. The company had also issued 1,428,572 ordinary shares to Mr. McGovern on 28 February 2018 at a price of 35 cents each raising A$500,000 for the company.
The remuneration structure of company’s CEO was quite high compared to the business performance of the company. It reported a net loss attributable to owners of the company of A$11,390,336 (against the loss of A$9,856,045 in FY17). In FY18, it paid director’s fees and benefits of A$671,175 (35.76% to Mr. McGovern) and share-based payments of A$845,771 (28.89% to Mr. McGovern).
The total assets in FY18 were reported at A$13.01 million with a cash balance of A$5.67 million and A$10.90 million equity. It had A$1,613,985 trade and other payables of which whooping A$50,000 was accrued to Mr. McGovern for the cash bonus.
It reported net cash used in operating and investing activities of A$9.12 million and A$0.16 million respectively with net cash provided by financing activities of A$14.10 million in FY18.
Stock performance: The DUB stock has also generated a dismal performance recently with negative return of 14.89% during the past six months. It is currently trading at A$0.405 (as on 24 January 2019) with a surge of 1.25% in the price during the day’s performance. The company has ~152.25 million shares outstanding with a market cap of circa A$60.9 million. DUB’s 52-week high and low are marked at A$0.60 and A$0.25 respectively.
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