high margin?? For the H1 ending 31st 2019 they made a loss of ~ 700K on a 1.7 MM revenue. Not a good margin by any measure.
Their selling and distribution services plus the marketing expenses were ~ 350K, that is ~20% of Revenue. For that size of the business I would advise that the proper metric be 7.5%-11% of Revenue IF you are NPAT positive and 5%-7.5% of Revenue is you are making a loss.
On top of that, cash flow from Ops was at $390K loss.
These metrics - for a simple low revenue business like ZNO - are totally inadequate to say the least.
With bigger revenues at the horizon, this is an inflection point where Paul is in the position to transform this business; that includes the manner in which the company is run operationally and strategically. It is the litmus test of his leadership if you will
