IMO these are good numbers for nms, revenue circa 120m fy, gross margin of 45%. the fundamentals look good
what is a ? is the corporate expenditure in the p/l which was $17m for the hy (down from $28m lst hy) as this is effectively eating sh profit. If this continues to decrease and nms can start turning legitimate $20m fy profits then this cmp is undervalued.
the cash position is probably a bit dire due to the restructuring chewing up cash, however they have $31m in current receivables and $16m in current payables so cash position should improve on full yr results.
Probably will have to undergo a capital restructure at some point as they have too many shares on issue.
Big challenge for management now is to continue to work on the core business (service industry) and not muck it up with buying too much capital and debt funding. Best management just worry about the core business and don’t tack on silly side thingz.
Here’s to hoping for goods thingz for nms s/hers.
NMS Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
