Future First Technologies Limited (ASX:FFT), formerly known as PS&C Limited, is building a portfolio of digital assets that seek to make life simpler and safer. The company owns two key businesses, farmbuy.com and Asset Vision, which it respectively acquired in April and November 2020, and convertible notes in a third business, 1derful.com.au. These acquisitions came amidst the divestment of the company’s previously held assets, several companies operating under its Melbourne Consulting business banner and a cybersecurity business. The sale of these businesses netted FFT more than $39m which allowed the company to pay down debt, provide capital for future acquisitions and working capital, and undertake a share buyback as a capital return to shareholders. The company completed the $0.05/share buyback of 147.72m shares in December 2020, at a total consideration of $7.38m, leaving it with $9.3m in the bank at period end. Having switched from IT & security consulting services into high growth technology companies, FFT is well positioned to benefit from the market’s appetite for exposure to SaaS-style revenues. We initiate coverage with a base case DCF valuation of $0.17/share which incorporates modelling for both farmbuy.com and Asset Vision.
