$4.5m under the Modern Manufacturing Initiative…good news?, page-8

Disappointed to see this test $3. small volumes will do this if there are no buyers. in my eyes this is more of a global market situation rather than fundamental. fundamentally this company is in a superb position, except for the lack of long term leadership. hopefully that will be fixed by the time F22 results come around and we can test the 4's and no doubt 5's again. The lack of a CEO to me is the reason we are in a downtrend, though I do welcome all new traders who bought the dip. That unfortunate event definitely put us on the radar as a listed company, for better or worse lol.

I do think this will make a good target for PE. Though they would probably hope for a proven leader to step in before any discussions are made. In a nutshell PE look for three financial aspects, reliable revenue, cheap price, big potential to increase EBIT margin, in this case I would say we tick all three. They do also like strong leadership, as most of the time they don't have the strategic resources to do it themselves, they are more of the enabler. Though a takeover at a discounted price isn't my goal here, I realistically think this one will get taken private in the next few years.

regarding inflation, I see us as a net beneficiary. High cash holdings, minimal debt and most importantly inflation will boost our revenue without taking the equivalent pound of flesh in cost inflation, as a lot of our future volume is just ageing, without much costly manufacturing needed. The only impact I can see is if a recession occurred reducing discretionary spending, but I don't see this as a scenario playing out yet.

Ultimately, though it's disappointing to see a strong company's share price depress due heavily to a CEO's actions, but also market thematics, I see massive upside on this in the next 12 months if the growth continues in 2H22.