The share based payments were for PH because he did not receive a salary for essentially 2 and a half years of work dating back to 2017 - so no the operating profit would not have been negligible, as it was for previous work and not a recurrent payment.
You can't look at figures by taking out gain on bargain purchase and then not take out start up costs and one off expenses. I think most here have the foresight to extrapolate out performance in the latter months of the FY20 year and apply to it to FY21.
As for contractors - FMG had about 12bn in revenue and their margins are 50-60%. Do you think they are going to want to enter a new specialist field which will require staff and expertise, to save $3m (prior to depreciation expenses)? All of these engineering and drilling services are contracted out - it doesn't make much sense to do it inhouse - there's just more that can go wrong with little return. By your logic they may as well not use any contractors and have a presence in every service in every sector that they use. Doesn't make much sense.
In terms of tenders, there should be news in the next couple of months. This should line up with Vysarn finishing their ISO accreditations. But the end game is being a "whole of water" provider - a water services and management business - something management see as a gap in the industry as it is today. If Vysarn can execute their strategy, this will make life easier for tier 1 and tier 2 companies as Vysarn will be a one stop shop for all things water.
Hopefully with continuous cashflow that is being generated that they can ramp up towards this, but they need to bed down their drilling/dewatering business first by landing longer term contracts and finishing accreditations. The company has only been active for 12 months. What they have achieved so far has been methodical and profitable and so I personally am backing them to deliver on their growth strategy.
I am assuming you share this vision hence you are a shareholder?
VYS Price at posting:
8.6¢ Sentiment: None Disclosure: Held
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