If they only earn gross profit margin of 9% (similar to recent history on $180 million and you subtract depreciation, other expenses and finance similar to last year) I only get a NPAT of $3.6 million (full tax) and a PE of 16. That is not cheap and suggests they need to improve the gross margin. Valmec had a gross profit margin (including employee expenses) of around 9% with similar revenue size and SRG which has larger revenue is also around 9% gross profit margin, so I am not sure how easy that will be. It will be interesting to see the half year accounts.
