Taken a while to go through the information today (and still...

Taken a while to go through the information today (and still doing so), but a few interesting things I've picked up on:

1) The discontinued business actually had a fairly healthy Gross Margin (36% v 27% from 12 months earlier). However, for some reason (and I'm not sure what), the OPEX for that business was massive and jumped by a huge amount from 12 months earlier. Hard to understand why from the info, but that business (including the 5.2m goodwill impairment) was an absolute nightmare! This looks like a cost issue, rather than a sales issue, so I'm a little bit stumped by it. Anyway, with around 26m sitting on the balance sheet for the "sale", let's hope they can get rid of it quickly and without too much more pain. 

2) On the balance sheet side, we now have a positive (net of intangibles) net asset figure. This is a good result, despite debt overall maintaining at around the 100m mark (which I still think is too high), it's pleasing to see that the balance sheet has some real value.

3) Cost reduction seems to be the theme of the next 6 months, which makes sense. Unless there is strong end-of-year seasonality in the revenue, I think management are being conservative in their estimates of 240m sales (which is about double of 1H), but it looks like the EBITDA estimate of 28m is fairly aggressive, and probably factors in the OPEX reductions. Whilst 1H EBITDA was 14.5m, this included the $4m lease bump (which from my understanding of the AASB 16 rules, should be considered a one-off). If they are able to deliver on the 28m, I think this would be an amazing result and one that is pivotal for the future success. I will cross my fingers.

Let me know if anyone else has seen any tidbits from the information provided.