Ann: Half Yearly Report and Accounts, page-42

Baillieu First
1H20 result first glance
Rating*: HOLD Price Target*: $2.75 Analyst: Nick Caley
Risk: High Share Price: $3.02 ncaley@baillieu.com.au
*Note: Rating and Price Target recorded at pre-announcement levels as detailed in our research report
dated 21 January 2020.

♦1H20 result:
1) Net Loss after Tax of A$2.4m (1H19: NLAT of A$1.9m) versus our forecast for NLAT of
A$1.5m;
2) sales revenue of A$8.6m (+129% pcp) in line with pre-result guidance; 3) cash on hand of
A$8.1m (FY19: A$13.9m); and 4) no dividend as expected.

♦ Our view: A miss to our forecast at the bottom line by A$0.9m due to higher employee and
corporate expenses than expected. Our view is that the sales number should be more important
than expenses at this stage. What catches the eye is that 1H20 gross profit margin looks to be
around 90%.