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clock Created with Sketch. 29/01/18
16:56
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Originally posted by Taurean7
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“Firstly I ask you how can we get recurring (meaning it’s the same as the past) revenue streams of this size (we’ve never made $30 million in a year before) as recurring revenue after we’ve been cutting out most of the unprofitable revenue streams?” You have asked me specifically for comment on the phrase that I used “$30M revenue from recurring operations ”. It is obvious that your expressed concerns derive from a misinterpretation of this to mean $30M recurring revenue from operations . “ an organic base case; a revenue and earnings run rate based on the current, awarded pipeline. Any future contract wins would therefore be earnings and value accretive .” This is what I was referring to. Although it is always better to err on the side of caution, intentional underestimation would be no more justifiable than overestimation in informing investment decisions. Cheers
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Looking at the Petra reports, it seems their analysts are just as blind as the rest of us punters despite their contact with management. They've gone from estimating $45m in revenue for FY18 (May 2017), to $36m in September 2017, and their last report in December 2017 has a $30m revenue forecast for FY18. With half the FY18 gone, and about $9m revenue for the first half, they will need a stellar second half to reach this forecast.
