Ann: Appendix 4E - Preliminary Final Report, page-60

Its been trading at a forward PE under 10 most of the time over the last 2 years,
The problem is they consistently failed to meet their forecasts even after re-confirming them.

2 years ago, at the AGM, they were aware that first half results were going to be below expectations, but explained it as “Greater than usual seasonality” and confirmed full year forecasts.

At last years AGM they claimed:

“FY19 operational update: solid top-line performance in first four months of FY19, reflecting ongoing sales performance optimisation; gross margins in line with budget and cost out program underway”
“Operating costs running at around ~30% of revenues for the first 4 months, against our target of 26% due to recent acquisitions”
Andrew stated that the cost over runs were due to some of the acquired businesses increasing spending, they had minimised spending before being acquired.​

There was no indication of any problem in the Capital Equipment business.

The same day they accepted $30m from China Pioneer for new shares at 89c each.

Nine days later the “Strategic Review” was announced.

A couple of months later, the capital equipment business was declared to be a “basket case” already up for sale and buyers looking at it.