The company provides IT consulting, software development, and enterprise resource planning (ERP) training, while also operating a specialized printing and packaging division called Myperfectpack that offers custom solutions with no minimum order requirements.
The company lacks a sustainable moat, as evidenced by a massive collapse in revenue and a shift from profitability to significant losses. While they claim a unique 'no minimum order' packaging model, the financials show no pricing power or scale advantage, with net margins turning deeply negative.
Capital has been deployed into a loss-making packaging venture and a US subsidiary that was shuttered within two years. Recent allocation includes a significant real estate purchase (land) despite deteriorating operational cash flows and mounting losses.
The company's collapse was driven by a fatal combination of operational decay and reckless capital allocation. Management abandoned its core IT competency to chase a low-margin packaging venture and speculative real estate, while the US expansion failed immediately. As revenue plummeted and interest coverage turned negative, the high debt load became a noose. The exodus of independent directors signaled internal rot, and the business eventually succumbed to a liquidity crisis, unable to service its debt from its hemorrhaging operations.
RichFakir rates Ekennis Software Service Ltd's business quality as poor — 13/100 on our quality score (profitability, growth, balance-sheet strength and capital allocation). We assess its competitive moat as none.
RichFakir's educational verdict on Ekennis Software Service Ltd is: Not rated. No reliable valuation could be computed, so we are not expressing a view on the price.
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