Ann: MBE On Track for Record First Half Revenue and Earnings, page-2

This is very impressive

Key points v Expectations

1H16 Revenues of $27M = This is above my internal expectations and assumptions and positions MBE for ~$60M FY16 revenues

Underlying EBITDA of $7.5M - Way above of what I was expecting. definitely need to update my model. On these numbers one could expect EBITDA to hit ~$15M. That's a major improvement and will surely make funds stand up and notice. Really liking this

Reported EBITDA of $3.5M - Obviously this number includes one off acquisition costs so FY16 statutory numbers will be ~$7M. But one values a company on underlying numbers so the $7.5M number is the key that everyone should be looking at

What's more pleasing is the company commentary which underlines solid organic growth, geographic expansion and strong domestic operations. That is pretty much the trifecta and you gotta be happy with that. Add to that that MBE is in the early stages of growth and you could get pretty excite to where this is heading if management delivers.

Also commentary suggests that acquisitions will keep on rolling in.

Ok so based on the FY16 numbers and my assumptions MBE' strong growth words I have revised my numbers and updated my valuation which moves from 27c to 46c, based on FY16 EPS of 2.3c and a PE of 20x earnings. I'm super impressed and these numbers have completely blown my assumptions out of the water hence a significant upgrade to my numbers and feeling more confident.