Ann: EMS division secures contract valued at up to A$202m, page-28

Water under the bridge. The company obviously had no financial discipline in the past and squandered cash on R&D with huge costs overrun. Now Ben is gone and in the short span of 2 months since he's been gone:

- The company has signed 3 contracts worth AUD380m - USD$120m from Ukraine and $202m today. The backlog at Dec 22 was over $300m, so we have more than doubled the backlog within a few months. The EMS division, afaik, has much higher margin than other divisions.
- I looked back several years and even when the SP was $5-$10, the company has never signed such significant contracts. The biggest contract was $34m back in 2020.
- Cash on hand is at $45m, with $80m debt, $20m of which is due in September. This was a worry a few months ago when cash dipped to $20m, but should be ok now.
- $25m cost cutting, likely to bring the company back to profitability this year.
- It's hard to estimate due to the nature of the business but I'm expecting revenue to go to over $200m given all the new contracts and also delayed revenue from last year due to supply chain problems. The company was making $16m profit in 2019-2021 with less than $200m in revenue and high employee costs so my target for FY2023 is $30m-$40m in profit. A market cap of around $300m or $1.8 per share after 12 months is not out of the question.

This is the best shape the company has been in its entire life.