Those who have sold out based on the 'outlook commentary' in the recently released Accounts may have been advised to check the history of commentary from the company before pressing the sell button. Just to recap ...
After FY2012 the company had achieved a stated 3 year 'organic growth strategy' (that was initiated at the end of FY2009).
The company then stated a new 3 year growth strategy which targetted 10% compound revenue growth for FY2013, FY2014 and FY2015. ie. Revenue targets of
FY2013 $66.9m
FY2014 $73.6m
FY2015 $80.9m
As we now know, revenue of $81.2m was recorded in FY2014. Hence two years into the plan and the three year target has already been achieved. That is the reason why we now have a new 3 year plan starting immediately.
Also, it is worth noting, when the last 3 year plan was announced in 2012, the commentary from the company indicated that earnings were expected to remain flat in FY2013. Earnings actually rose by 15% in FY2013.
It is worth keeping the company's track record in mind when reading their outlook commentary.
SNL Price at posting:
$2.44 Sentiment: None Disclosure: Held
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