The presentation says they have $33m in secured revenue for FY2025 (not sure where you got the $43m), and perhaps they can do $10m in Advanced Materials & Coating (that seems to be roughly what they did for FY2024 and similar for FY23).
At this stage last year, they had ~$55m secured, and then in Nov23 got awarded another ~$30m worth of work, so if they are to get anywhere close to what they delivered for FY24, they are going to have to land a contract of ~$50m and deliver on that as well in FY2025.
I joined the call and CEO seems incredibly upbeat, but what is a little concerning is no major contract announcement since Nov23, and we are again looking at a 2H skew which may mean nothing if they don't actually land the contracts.
The other issue is that despite having a record year, they only managed to deliver EPS of 1.6c; and it is therefore trading on a PE of 20 times earnings. I'm sure you need to take out that cash, but it appears that is needed for working capital, so it appears to be a codb rather than an asset that you can use to pay dividends.
Again, CEO highly positive on the call in terms of the macro environment, their facility and product, but these investment decisions need to be made well in advance to get the equipment out there, so the glaring omission is the lack of new large contracts
MCE Price at posting:
32.8¢ Sentiment: Hold Disclosure: Held
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(20min delay)