Yes, agree 100%. They're track record under previous operational and corporate management was lousy. Still some deadwood in the corporate area but the profit driver, the traffic division, is working beautifully with top class staff.
They must meet their $3 million full year projection. Assuming they do this then the second half will produce about $2.25 million, a $1.5 million improvement over the first half.
The secret of revenue and profit increases is the installation rate, this has increased markedly over the past 6 months and will continue to do so and it is reasonable to assume that the $1.5 million improvement half on half this year will further improve in the future.
Even at the current rate it would mean first half 04/05 being a minimum of $3.75 million and second half $5.25 million, total for 04/05 being $9 million although i believe they will better that figure.
It appears very predictable now so we have a good yardstick to judge by. At one stage a poor performance by the Communication division seemed almost certain to cloud the future figures however their large contract announced yesterday has underpinned their order book and should at least make the Communications division profitable for the next few years. Communications will now be a very attractive business, hopefully it can be sold for a good price to allow all the energies of the Redflex board and executive to concentrate on the Traffic business which is a world class leader in its field.
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