DTS’s Recent Achievement Could Not Impress The Investors - Share Price Tumbled By 10.526%

  • Jan 08, 2019 AEDT
  • Team Kalkine
DTS’s Recent Achievement Could Not Impress The Investors - Share Price Tumbled By 10.526%

On 8 January 2019, Dragontail Systems Limited (ASX: DTS) announced that Pizza Pan Group Pty Ltd (“PPG”) will now be implementing the Algo and driver sharing platform into the Pizza Hut stores across Australia regions to streamline the restaurant and the delivery operations of Pizza Hut.

In Australia, there are more than 280 stores of PPG where initial implementation will take place in the equity stores which will gradually get implemented in other stores. The deployment of the Algo and driver sharing platform will occur in phases.

DTS has a unique asset of Algo Dispatch System which is capable of streamlining the kitchen experience for quick service restaurant (QSR). It has a QT camera for the quality control system. Through its software and the algorithms, helps in optimizing the process. Its Algo Dispatch system works on the artificial intelligence and machine learning tool. Its driver sharing module enables to optimize the drivers’ functioning in the number of close stores as they share a common platform and also systematically regulate the workforce.

DTS through its existing relationship with Pizza Hut Singapore, and Pizza Hut Canada by agreeing with Pizza Hut, Australia will further strengthen their relationship. Pizza Hut on a global basis selected Algo as their brand standard solution and entered into a unique agreement of using the DTS’s technology as the brand mandated product for all Pizza Hut in Canada.

The official listing of DTS on ASX is 20 December 2016, where the performance of DTS remains -5%. The last one-year performance of the company is -20.83%. However, during the previous six months, the performance of the company is 46.15%.

For the half-year period which ended on 30 June 2018, the company made a loss of 143% as compared to its previous corresponding period. The net loss of DTS in the half-year period ending 30 June 2018 was US$3,951,545. The balance sheet of the company seems healthy with a net asset base of US$2,693,935 and a debt-equity ratio of 0.197 which indicates that the company is financially sound to meet its long-term debt and utilizes its resources in case of any financial requirement within the company. The current asset which DTS has is worth US$3,035,313 which is much ahead of its total current liabilities of US$532,967 which indicates that the company can efficiently manage the working capital requirement and also clear its short-term debt. However, there is an increase in the accumulated losses which is approximately 31% as compared to its previous corresponding period which might have created a negative influence on the investors and the shareholders.

The net cash available with DTS by the end of the period was US$2,780,540.

Dragontail Systems Limited through its Algo and driver sharing platform might have set a higher expectation amongst the investors. However, the poor performance of DTS and increased accumulated losses might have affected the investors adversely that even after its recent achievement, its share price tumbled by 10.526%. By the end of the trading on 8 January 2019, the closing price of the share was A$0.170 with the market capitalization of A$47.12 million.


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