Brett, I will agree with you that the business is currently not...

Brett,

I will agree with you that the business is currently not break even and i too can't see where they are seeing that it's break even for FY 17/18.

Here is a bit of a skirmish of my numbers... basically i read through prior announcements and pull our factoids and try extrapolate a P/L for the company for the current year and future years.


Assumptions:


I wont go through my full methodology but my basic takeaways are as follows:
-2017 H2 saw the ship begin to turn with the info scope acquisition (positive intention by management)
-2018 H1 saw additional contracts be won (Ark, API, WP) and backs up management's intentions from above
-My FY 17/18 Calc shows a NPAT of -$1,966,685
-FY 18/19 case: simply by keeping Expenditure(Overheads) stable + adding about $1.8m in revenue you will see a break even profit scenario

The questions for me are:
-Can management continue to "win sales"?

The investment case for me is:
-In 1 year this will be a break even business... in 2 years this may generate $1m in NPAT.


I ran these numbers pretty rough so please dont rely on this post to make any financial decision.
♥