report, page-8

Likewise robrob I generally agree.

They lost out on 2 large contracts during the half which may also partly explain soured sentiment (Lots of insiders when this happens).

Reasonable result which was better than recent share price performance suggested.

As Stefanis notes, the bottom line was flat when you back out the earnout adjustment. However, they noted upfront opex incurred for the Data Centre and failed major bids likely explained the $2.5 million blow out in raw materials and consumables (This is one query I have for management).

Still seems to be a seller that wants out but buy depth has recovered.

Lower cashflow is consistent with historical performance.

They have indicated in the presentation that Bankwest has approved a facility in principle to repay the vendor amounts due - they need to be cautious about gearing. Leading peers such as DWS don't have debt.

Existing core debt is circa $23m and my impression from the current release is that final earnout consideration is a cash payment of $21 million. This will be a little more than 2.5 times NPAT which is doable but needs to managed carefully. It is not surprising they have flagged cashflow and capital management as a priority.

If they deliver a good increase in the next half as they have indicated in their outlook then there is good long term value at the current SP. Will also be good to see the impact of the operational data centre which up to now has just been a drain on cash.