Ann: United States XTclave Manufacturing Plans, page-18

I hope that people understand the nature of this business - it's highly dependent on winning contracts and it has seemingly made a gamble of investing all that cash that came through in the last 18 mths on stock and the hope is that they manage to sell through that stock at a decent margin because running those facilities is not cheap (and the lead times to win contracts can be long).

The other issue that I've noticed is that that the Technology business is very low margin as that would explain 40m revenues in 3H23 and no profit. The SUAS support contract should be higher margin than selling the actual drones, but since ~Jul21 they have been running at operating costs of ~10m (the added 4-5m in 1H23 was a commission plus some stock writeoff), but that means they need to do at least 20m in sales each half at 50% margin to thread water.....not necessarily very easy given the contracts seems to be in the $3-4m range (excluding the large presumably Ukraine contract they got).

	AUDm	1H2021	2H2021	1H2022	2H2022	1H2023	2H2023
1	Revenues	12.4	15.9	11.5	46.7	48.5	40.9
2	Gross Profit	3.2	4.9	3.1	24.3	24.6	9.1
3	Gross Margin	26%	31%	27%	52%	51%	22%
4	Expenses	7.0	5.5	10.1	10.6	14.7	9.8
5	NPBT	-3.5	-0.4	-6.8	14.0	10.0	-0.6
6	NPAT	-3.5	-0.4	-6.8	14.0	6.0	-0.6
7	EPS (Basic)	-5.0	-0.8	-7.5	13.8	6.0	0.0