Just as an FYI also - I went back and checked the investor preso from last year (they really should update, no preso since april 2018) but to meet their 2020 aspirations they need to hit approximately the following:
100mil total revenue (roughly on target with ~46mil first half) 25mil managed services revenue (not sure exactly where this sits currently, but I think 12million was the number from the half?)
So they are currently heading toward that. I'd also expect staff to increase to ~200ish to achieve this (was 140 in april 2018).
Using their gross margins listed, they would make ~17.5million gross margins. After you take out staff costs, etc etc I estimate it could be 2-3million NPAT if they achieved what they wanted to and kept the margins they had listed.
Ofcourse hasn't been the case to date (net margins still very thin) but I am hopeful that this is a delayed growth effect (i.e. they have to hire staff to do more revenue and thus they are constantly paying ahead of the result) but we shall see.
CNW Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
