This is a terrrible report, the more detail I look into, the...

This is a terrrible report, the more detail I look into, the worse it looks.

Reported NPAT is $1.040M, however that includes $381K from the recently acquired Gateway.
When that is stripped out, NPAT for the Laserbond operations has dropped from $1.688M to $659K.

To make the forecast look better, they have quoted Profit before tax, rather than after tax.
When the Gateway contribution is stripped out and tax is paid, the forecast looks very poor compared to their past. If we take out $400K for Gateway, then 30% tax, the $2.4 forecast drops to $1.4M profit for the Laserbond operations.

Their "Investments" into more staff is not a one-off expense, it will increase their ongoing expenses into the future.

The Balance sheet has deteriorated:
Cash is down and is now less than half Current Liabilities.
Receivables are up, to over 3 months of revenue.
I would not be surprised to see some bad debts recognised in the future, and/or a capital raising to improve the balance sheet.

The US expansion will be expensive considering the current very low share price and low $A exchange rate. Much better to expand with a high exchange rate and strong share price.

I'm out!