Just to reinforce what @Ubermicro & @madamswer said above.This...

Just to reinforce what @Ubermicro & @madamswer said above.

This is what they said in their 1H23 results preso on the 28th of Feb:

So they delivered $6.6m in operating EBITDA in 2H23 and if they annualise those results, you get EPS of ~7.5c which is FY22 profitability...I mean it's scary how close they got given the size of the business (a cynic might even think they fudged something like the inventory numbers).

Like they said, they took a hit on the top line to improve margins, but to deliver those margins with FX rates at ~67c is quite something. I can also see why they want to pivot to exclusive brands with minimal substitution options.....I've changed tyres on my car in the last 6 mths and although prices have gone up, you'd be silly not to shop around as a consumer.....the upside being that commercial tyre demand is expected to remain strong (~50% of the business)

	Period	Sales	GM	Avg FX	EBITDA
1	1H 2018	66,696	32.9%	0.780	2,377
2	2H 2018	79,604	32.4%	0.767	9,144
3	1H 2019	83,762	30.2%	0.721	6,833
4	2H 2019	84,603	27.2%	0.708	5,989
5	1H 2020	80,454	27.0%	0.683	6,363
6	2H 2020	78,403	25.0%	0.657	5,821
7	1H 2021	212,403	28.4%	0.729	20,769
8	2H 2021	249,130	31.0%	0.765	32,824
9	1H 2022	251,488	29.0%	0.730	17,472
10	2H 2022	306,421	28.5%	0.716	23,006
11	1H 2023	295,931	27.1%	0.671	13,730
12	2H 2023	286,353	29.2%	0.671	22,544

What I expected was inventory would fall, but still at ~130m which by my calcs is ~3-4 times monthly sales (COGS)....not sure if this is high from a stock perspective, but certainly a business that needs decent working capital.

Only had a chance to look at the accounts now, but when I saw the price drop to 55c I thought they must have had a disaster.....if anything, it was quite a solid (strong) performance as the highlighted posters pointed out......with just a moderate outlook (improvement in performance), but justified given ongoing FX weakness and economic uncertainty.

One this where mgmt slipped up is they really should learn not to release accounts in the middle of the day (when the market is open) as it tends to panic some shaky holders.