Pristine result. We were worried about the large inventory in FY'19 , but it has been converted into cash ....Inventories has fallen down to a more reasonable level. Here are the highlights of this great business.....Too many to mention. # Gross Profit Margin 48%. # EBITDA Margin 23%. # Net Profit Margin 12% These type of margins are only seen in elite businesses with good pricing power. # Operating cash flow $3.2m. # Free Cash flow after investing $1.45m amounts to $1.8m......It can afford to pay down debt or pay dividend.....it is the surplus cash flow above the immediate needs of the business. # Cash holding >$6m......A cash cow......Not one milking shareholders. # Increased equity by 27%.....No hairy fairy intangibles.....No nonsense capitalization of expenses....Just solid, hard to dispute numbers. # Working capital ratio increased to 2.47%.....Too strong even for a manufacturer. # Strong debtor position with net receivables $$00Ks. Very healthy indeed......Could it still succumb to this new bug?
RFT Price at posting:
3.3¢ Sentiment: None Disclosure: Held
