Ann: Dec 23 Half Year Results Investor Presentation, page-2

I'm still confused with the accounting here as it seems to point to gross margin in the teens (12.8% for 1H24 and 14.8% for 2H23 when revenues were 35m......but much lower historically and between 2017-2021 had a negative gross margin!!)

The only upside seems to be the ~58m in revenues that they seem to have confirmed in 2H, but even then, at a margin of 15% that will give gross profit of ~9m which is not significantly above the 7-8m in expenses they incur each half.

There just does not seem like any significant operating leverage in the business and even if that was the case, that should be okay with their order book (at least for the next 6-12 mths), but if gross margins in a relatively niche industry seem to be non existent, I do have to question how the market is going to justify a 67m MC.......the last time they booked a profit was 2015 and based on those economics, I have to wonder if this business is sustainable

All IMO, but happy to hear any other views as to how this becomes a profitable business (FY2015 - revenues of 144m, NPAT of 3.6m.....based on current trajectory, I'm not sure they get even close to that if their gross margins are so small)