Overall management are doing very well with things within their...

Overall management are doing very well with things within their control, the costs keep coming out of the business (not sure how many more costs can come out).

It was a terrible year as they lost a big user of the product, but hard for the upstream manufacturer to have visibility. Time will tell, but the move to multi distributors hopefully gets the product into more brands and customers in the long run (assuming they have relationships with existing players).

That said, for ~50m for a business that is on track to do about 3m profit at the current run rate (assuming alusion sales similar to previous years), you’re purchasing the potential for future growth. In this regard they seem to be doing everything right and are expanding the product capabilities and the distribution network. Just need the volume to materialise.

I’m hoping that with the move to qld and a centralised lab/plant etc they can start investing some of the cashflow into blue sky r&d and look to increase the product offerings. I know in the past they have spoken about the multiple other uses for zinc etc (supplements etc).

anyhow, this remains a put in the bottom drawer stock.