Significant improvement continues, looking at the trend for EBITDA : - 3.2 m AUD for H1 23, - 0.2 m AUD for H2 23 and + 5.1 m AUD for EBITDA (continuing operation) for Q1 23.
It seems to be quite a solid recovery as it is based on 3 elements : - large cost savings (12 m AUD expected), - price increase and less inflation for material costs, - less fixed price contracts, which seemed to represent around 50 % of their sales in FY 23, but this share keeps decreasing and is expected to represent around 5 % of sales by the end of FY 24.
So, based on the net cash at the end of FY 23, it is now valued at EV/EBITDA of 2.1 x if we annualize their Q1 results. I imagine that there are some reasons why it looks so cheap, but it is probably worth looking into more details.
Their EBITDA margin remains low at 2.9 % for Q1 24, but it is now above the level of Q1 22 (2.2 % vs - 0.9 % for Q1 23).
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