These guys are absolutely hopeless at communicating to the...

These guys are absolutely hopeless at communicating to the market. Only good thing is that it creates buying opportunities. Here is an email I just sent to the CEO:

Hi Elias

I'm a long time shareholder in HIT and a full time small-cap investor. I'm a bit baffled by the normalised EBITDA and NPAT figures released today - I'm not sure you are doing yourself any favours because the % increase year on year for the underlying business would seem larger than the 14% you have indicated (a figure the market seems a bit disappointed in).

Have the FY16 numbers removed the effect of both the $870k unrealised gain on shares as well as the $291k realised loss?

On my calculations FY16 EBITDA is $2,514,966 and FY17 EBITDA is $3,201,681.

This is an increase of 27%.

These figures were calculated by taking NPBT; adding back D&A; deducting "other income"; and then removing the effect of any realised or unrealised gains/losses on financial assets.

Finally there is no sign of the $176,000 payable for the exercise of your 3,900,000 options in the cashflow report. Is this amount represented in "other assets"? If so is it possible to get an indication of what the arrangement is here?

Congrats on a really good result. Hopefully the market can get a better understanding of how good it was from clarification of these numbers?

At the moment it looks like expenses are rising faster than gross profit (ie 14% EBITDA growth vs 21% gross profit growth) suggesting an inefficient business whereas the opposite is true (ie 27% EBITDA growth vs 21% gross profit growth). On the correct numbers it indicates, as you touch on later in your announcement, that you are able to expand gross profit while maintaining a relatively flat cost base. This difference can have a huge effect on market sentiment.

Cheers,