Quarterly Report, page-3

I was disappointed revenue was only $3.5m in Q1, but Prime Power takeover only occurred in September and $26 million annualised revenue rate will only be in 19-20 second half (slide 8 of presentation on 15/8).

First half revenue likely to be around $3.5m in Q1, plus say $6-7 in Q2 when PP is included and $13m in 2H, so only around $23 m in total. The combined revenue in FY 19 was $20m. Cash and accounting revenue can differ so figures are only rough.

EBITDA of combined entity was $0.7m in FY19. If BPP alone can generate $1.2m in cash inflow this year (Q1 by 4), the combined entity should generate $1.5m in FY20 at least. Combined entity would then be around profit breakeven in FY20, as BPP had $1.3m depreciation in FY19.

Market cap at $13.6m suggests they need around $1.5m net profit to justify share price at a PE of 10. Revenue would need to be over $30m in my view given the gross profit margin of 21%.

They need further growth in following year or another takeover to achieve that and justify current share price.