With 10% Revenue growth, 26% EBIT growth, 27% NPAT growth, $3.4m...

With 10% Revenue growth, 26% EBIT growth,  27% NPAT growth, $3.4m Operating Cash Flow and $3.1m Free Cash Flow, they exceeded even my elevated expectations.)  

[Cumulative FCF over the past 5 half-years amounted to $10m, and that during a period during which they were undertaking a once-a-decade investment in expanding the business's asset base to support organic growth for the coming decade.]

And that impressive growth in operating earnings has occurred despite them incurring all sorts of costs (quantum undisclosed, even though it is likely to be meaningful [*]) for a major re-configuration of the company's supply chain in NSW - effectively an entire relocation of its national distribution center from one city to another... no small project, as well as major operational changes and expansions in its operations in WA, QLD and New Zealand.

This is a case study in how to manage a business for long-term shareholder wealth creation (seemingly, without caring a jot what the market cares about maximising short-term profitability.)

[*]  Looking at the very light capex line in the Cash Flow Statement (just $358k in DH16 and $540k in JH16), it is clear that they have simply expensed a large chink of this additional cost impost,  when they could legitimately have capitalised it.  So even with the strong growth, I am quite certain that the current result is under-stated due to this very conservative accounting treatment. And when it comes to the preparation of financial statements, I very much like "very conservative" .

Late last year they guided to full-year Revenue of at least $92m and EBIT of at least $7.5m. Given the interim result came in a $47.7m of Revenue and $4.4m of EBIT, you don't need to have a degree in  finance theory to conclude that full-year EBIT will be a lot closer to $9.0m, than $7.5m.

And given the expanded capability platform they have now put in place, and the way this result demonstrates it is performing so far, tells me that FY2018 will be the year in which they achieve their $10m EBIT objective.