Gross Margin fell 58% to 54% due to inclusion of results from Telerus acquisition - a lower margin business.
Newly acquired VPN added about $0.5m to EBITDA. Excluding this contribution, existing businesses grew EBITDA from $3.1m to $4.4m, about 40% - well beyond the 20% organic growth target set by management.
Strong cash generation, modest capex and miserly dividend should ensure $10m net debt is chipped away in the next 18 months. Another business bought at 5x EBITDA at that point looks to be on the cards!
OTW Price at posting:
$3.07 Sentiment: None Disclosure: Held
