Ann: Business Update, page-35

The big miss is the net profit for 2019 which is now $2-3 million before tax and non-cash items. Newing had 2019 net profit at $6.4 million AFTER depreciation and tax in his last valuation. If I read him right his comparable net profit before tax and depreciation was $7.5 million. We are one third his estimate.

We will not know why until we see the accounts, but I assume not only revenue was lower, but also the gross profit margin.

I am at least encouraged that despite 2019 revenue at $25 million missing the guidance of $27-30 million due to $5 million in revenue moving into 2020, they have left the 2020 guidance unchanged at $50-70 million. Perhaps they ARE getting more conservative with the forecasts.