$15m contribution from $25m CT rev @60% gross margin, 2nd half gross margin was 64% on $9.6m rev so actual margin may be higher especially if scale benefits continue to be realised (1st half was 50% on $5.6m rev).
$13m overheads from annualising 2nd half.
Other income, depreciation etc cancels each other out.
Any revenue growth from Precision will mostly fall straight to the bottom line (85% GM business) but none is assumed.
Main risk is that overheads blowout but 2nd half includes full impact of restructured sales team. Alternatively revenue could fall short but assuming that just 63% of this year's revenue is already contracted based on last year, then they will deliver $27.5m so $25m seems reasonable.
CGS Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
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