Ann: Trading Update for FY2022 and FY2023, page-15

Well said Chuxa - can’t reply directly.

I think everyone is missing the theme here. There’s been a huge upfront investment in European expansion. That was clearly apparent in some of the recent financial reports. This is an investment in people, marketing, rent, stock etc ie EXPENSES!!!

While I won’t go so far to say that this is a positive announcement I will say that the risk v reward at this level is highly skewed to the upside. This is an $18m EV business. With very conservative assumptions the NPV of the Certus contract is about $7m so that implies the whole business with stock, ARR, shell value is worth $11m. If anyone can clearly argue that this is over valued at this level please feel free to make your points.

I will say though that my TP estimates are likely to be delayed but I’m prepared to be patient here. Not much effort for 1-3 bags at this level. I am also very glad that they invested in stock given supply chain challenges

Travelling atm so will do a deeper dive when I’m back in the country.