Ann: MTO FY23 Interim Results Presentation, page-21

I agree it is probably not the best time for future business performance.

But given that they use their own shares for 50% of the acquisition (which were also a bit higher at the time and pricing in good times), and it is EPS accretive due to the low valuation of the shares, it may still make sense on a valuation perspective.

Mojo Group contributed revenue of $27,717,000 and net profit after tax of $2,345,000 in the 2 months since acquisition.

So this is a NPAT margin of 8.5%. Probably higher than can be sustained in coming years. But still not at outrageous levels. If we assume the margins drop in half over-time, it will still be an acceptable purchase given the price of debt and the earnings made in the boom period of this year.

It also gives them diversification, what if agriculture does keep doing well for another two or three years? Then it will provide good diversification to the business. And it also provides an avenue into vehicle wholesaling which they previously weren't involved in.