opposing view
the results were terrible imo and reflective of why the share price continues to slide
who cares about sales increases,,monster increase in sales but hardly any gross profit.
bottom line, margin is collapsing as sales increase, the business is going backwards
. Sales will have to go up 100's % looking at those figures to make a descent gross profit and to have any meaningful profit on the bottom line.
Gross margins are all important ,,,,,,
in 2017 half GP was 34.86%
in the current half despite heralding all this growth in topline, GP was 20.92%
that's a drop of 39.9% ------------
if you back out the listing one off expenses from last year and a lot of the share based payments (Cr's payments) , loss was about the same despite big headline sales figure.
been great for employees but not shareholders imo, and wont be shareholders
They have made inroads slashing expenses but that can only go so far,
Balance sheet, so its got some cash, but when you deduct their payables, add future payables(they have deposits on orders placed listed as asset) and add some sales based on liabilities (deferred revenue, customer deposits not satisfied from existing inventory) wont be long before there is the need for more capital imo.
If they made 386K on 1.84M, if they doubled sales again this half, GP would be 722K, that extra 386K isn't going to plug the loss,,,,,,,
sales have to explode for this to be a shareholder and employees dream.
I cant see it happening, plenty of similar products everywhere, barrier to entry is low.
And to get sales to explode,,,lets say some monster order comes in,,,they do not have the capital to build the inventory in its current position imo.
Personally I Cant see a Disallowed, I cant even see 10 cents.
Good luck
Expand
(20min delay)