Finally got around to the conference call. Very consistent with...

Finally got around to the conference call. Very consistent with prior calls and pretty crystal clear that management is focussed on long term, profitable growth with their stated strategy.

As always unclear to me what is driving the share price but by my calculations, we are on track for underlying NPAT of around 75m in FY22 in there is 10-15% revenue growth, gross margins for the combined business drop to 58.5% and interest/transaction costs start to come down. Ie the underlying NPAT of 75m will be achieved once margins normalise at c ~575m in annualised sales. Now that may take 2 years in the setting of significant lockdowns, but even still, the underlying business is growing strongly organically and from H2FY22 there will actually be surplus cash/capital to deploy as well. Moreover, with operating leverage from the upsizing program and digital, margins might not decrease that much.

It seems to me that the market is assuming that FY21 is a one-off, and ignoring the strong & consistent growth trajectory that has been demonstrated to date.