Ann: Annual Report to shareholders, page-41

From what I can tell the four key negatives from the result were:
1) Working capital/revenue has increased from 9.4% to 16.5%, so potentially more capital intensive going forward or just timing?
2) Other income of $6.8m (up from $1.9m) boosted EBITDA, but it was suggested there were some offsetting costs.
3) The net debt position at $42m was possibly higher than expected due to working capital and a US$5m earn-out payment.
4) No specific guidance was given, unlike FY23.

A number of followers seem to be worried about debt levels, intangible levels and reported NPAT. I have no issues with net debt at 1x EBITDA, intangibles (just an accounting entry) and reported NPAT (as most investors add back amortisation, so NPATA is a much better reflection of earnings.

The positives to me center around:
1) Likely lower average debt and average interest rate charges (~125bps or $0.9m)
2) Lower capex spend relative to FY23 ($6m vs $10m)
3) Valuation, now trading on 5.0x FY24 PER.

I acknowledge customer concentration and contract risk, but see no reason why HP would change providers given the supply chain links, and a GP% of ~35% is hardly taking the micky. Lets see the broker reactions tomorrow for more detail, but I will be topping up here.