Chris the future projected orders will no doubt boost the sp...

Chris the future projected orders will no doubt boost the sp over the next month or so.
In regards to your comment about a 'quite strong half yearly report', I was very alarmed by a few numbers which, to me, raises a red flag for the local business.
Revenues grew from $15.1 - $17.9, modest for a start up with a flurry of new products but solid increment nonetheless.
However, Cost of Sales grew from $10.5 - $13.5. I nearly fell off my chair.
This means that for the $17.9 in revenue it cost them $13.5 to get this revenue.
This represents a Cost of Sales of 75%. At this rate they are giving the products away.
Said simply, for every $1 of sales generated it cost FOD 0.75c to get it.
Industry averages across a multitude of different categories in Consumer Product Companies would range from a low of 12% to around 25%.
(This will be well known to any posters who have had any experience in the consumer product industry)

For those not familiar, 'Cost of Sales' refers to the cost of deriving the sale. The majority of which comprise price discounts, rebates and incentives to retailers. ie Cost of listing the product on the shelves and placement on shelves etc... For the retailer, this 'Cost of Sale' is recorded in their financial statements as 'other income' and is an EXTREMELY important part of their own profitability. Annual trading terms negotiations will see retailers squeeze the manufacturer very hard to increase this % every year. In fact, retailer bonuses are paid based on their ability to increase this 'other income' year on year.

Moreover, not only is the % cost of sales extreme but it has grown faster than revenue period on period. This is alarming and not sustainable. Retailers will pressure manufacturers to maintain or grow this %. It is extremely hard to pull back from this as the retailer holds the balance of power during negotiations and it has been booked by them as 'income' for the previous period.

Finally, another number that was of concern to me was the Trade Receivables. This has grown from $3.4 - $6.2 over the period whereas the revenues have grown at a significantly slower pace. This implies that the retailers are stretching their payments as more money is outstanding and putting pressure on working capital.

Whilst I do not have access to the full P&L's and the details behind the numbers, I believe my comments are reasonable based on the numbers presented in their report.
In addition, the financials are consolidated so it is difficult to fully understand what costs are associated to the local business and with shipments to the China business.

Net, I have been a harsh critic of the local business from the outset and my sentiments remain.
The China business presents a very good opportunity but may have been delayed due to the virus.
Sanitizer may prove to be a very good income placeholder in the short term.

All imo, of course.