Ann: FY13 Results Presentation , page-14

my 2c. dyor.

My main query out of reading the accounts is what level of sustaining capital expenditure they need to make going forward, as their PP&E is just about fully depreciated (in an accounting sense anyway - who knows in reality). There has been no significant capex in the last two years.

Revenue estimates, I would be leaning closer to $20M for 2013-14, although this really depends on what basis the pre-November 2012 contracts were negotiated. I.e whether those customers have already been recontracted, or will be contracting under the new payment structure over the next six months. The September 2012 quarter was pretty strong compared to previous quarters, and that was prior to the introduction of the new billing.

Revenue ($000)
Sep-11 1,870
Dec-11 1,735
Mar-12 1,489
Jun-12 1,748
Sep-12 2,604
Dec-12 2,738
Mar-13 5,252
Jun-13 4,920


Expenses excluding D&A are running around $13 M annual. So say $14M-$15M for 2013-14. I would ignore the amortisation charge of $1.5M. Assuming sustaining capex of around $1M, this would give free cash flow of $4M-$5M. Interest earnings will be another +$0.5M or so on top. Not sure if they will pay too much tax in first year of profit either.