Is the honeymoon over?, page-205

Yup, I see the 2nd half year as the one to the watch.

Also looking at the last Petra report I see they were forecasting sales of $45m for 2017/18 - buts lets be conservative and say they do $35m.

Whilst AJX are targeting a margin of 40% - lets say that the average for 2017/18 is 35% over the year.

So applying 35% margin to $35m in sales gives a gross profit of $12.250m.

Operating costs for the last quarter where around $2.265m - but lets be conservative again and say they average $2.5m per quarter and so for the year $10m. Interest costs for example may rise abit if they draw down on their debt facility to fund a big order.

Depreciation etc (non cash) for last year was around $359k and employee share based payments $529k. So lets say non cash related spend (and not shown in the quarterly 4C's) is around $1m (but hey it may only be $500k).

So based on $35m in sales they have the potential for a net profit of $1.250m.

And on $40m a net profit of $3m.
I

Another thing to watch is whether they get any upfront payments from a licencing deal, which would also help cash-flow and lessen any requirement to draw down on the debt facility.