The company often quotes Warren Buffet, perhaps we can quote...

The company often quotes Warren Buffet, perhaps we can quote Charlie Munger "“I think that, every time you saw the word EBITDA [earnings], you should substitute the word “bullsh*t” earnings". KPG statutory reported NPAT attributable to the owners of the business was $2.3M down 32% on previous half. The other "owners" being the minority owners of the underlying business units earned $4.2M - so almost twice the parent/KPG shareholders. Revenue may have grown 42% (largely through acquisition) but operating expenses grew 59%. Net debt grew to $37M and finance costs grew to $2M (+128%) in a tightening rate environment. Net debt of $37M on an accounting firm generating circa $90M in gross revenue appears high. Market cap of $200M plus but in private markets accounting firms may be valued on $ for $ of revenue or 4 to 5 times earnings less debt.