Ann: FY18 Performance Summary, page-4

First 4 Last

Share
Profile

Follow
Fidosnos

1,317 Posts.

50

29/08/18

07:08

Post #: 35251076
Share

Originally posted by SimonGr ↑

I'm still digesting, however ...

- $12M 'loss' that you quote is made up of significant non-cash accounting changes that make this year worse ... but future years better, ie.
- extra $4.2M amortisation (one-off to reduce amortisation over 5 years vs previous 7)
- as RDF has tax losses on its balance sheet and Trump has reduced US Corp tax, there is a reduction in the carrying value of these ($3.0M)
- Therefore ... loss is really $4.9M.... driven by heavy investment in the Int Business (as per their business plan at capital raising).

This is a technology business that is investing to grow again. With a market cap of $54M today, this entire business is being priced at just 5 x FY18 EBITDA of its "Americas" division which is sticky annuity type revenue (and assigning zero value to the International business that they're spending all the cash investing in!).

So ... if you have no faith that they'll achieve their goals in the Int Business you should stay away. However, I'm betting that they will be successful in winning contracts over the next 12-36 months and we'll see a significant re-rating of the shares, starting with their first major contract win.... or maybe even earlier with this result!

Expand

What is their likely ongoing capex figures. Have they discussed this anywhere? With low debt and costs falling faster than revenues for the past year, it speaks of responsible management.

RDF Price at posting: 34.5¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

HotCopper Highlights Week 26: Droneshield 2.0; Trigg re-jig & Virgin

RMX

Red Mountain: Chip samples point to 'large orogenic antimony mineral system' at Oaky Creek

OCC

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

MVF

Monash IVF shares cater 25% – Disaster or deep-value play?

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

SRL

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

PAR

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

First 4 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Ann: FY18 Performance Summary, page-4

Top Stories

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

HotCopper Highlights Week 26: Droneshield 2.0; Trigg re-jig & Virgin

Red Mountain: Chip samples point to 'large orogenic antimony mineral system' at Oaky Creek

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

Week 26 Wrap: Renewable gas fantasies; RBA July cut hope builds; copper's August peak?

Monash IVF shares cater 25% – Disaster or deep-value play?

Australia’s gas crisis is here – and dying coal plants aren’t helping

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

Featured News