TPW 1.19% $9.16 temple & webster group ltd

Hi Mal you've bought v. well.! Those gross and NPAT margin...

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    Hi Mal
    you've bought v. well.!

    Those gross and NPAT margin targets look sensible to me for a mature operation. But given TPW's current revenues are ~$63m and they are still loss-making at those levels, I think they'll need considerably higher revenue to reach a $4-5m profit.

    In the June 2017 trading update the company suggested that based on the costs incurred in Q4 they would achieve break-even in profit terms with ~$79m revenue. If/when revenue grows above that we should start to see good profit growth. TPW has had a lot of losses too, so I expect it won't pay much corporate income tax for a while either. This too will help the profits grow quickly.
 
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