Your analysis shows little understanding of the business of...

Your analysis shows little understanding of the business of Halo. They do not sell powder in 25kg and never have. The majority of their work is in a 1kg format. We know from the annual and hlaf year accounts their average gross margins are 25%. Their operations in New Zealand are profitable at the half year (30 September 2021) per the below and they had their biggest quarter on record to December 2021 (not in the numbers below). What really matters is EBITDA not NPAT. These sorts of businesses are valued on a revenue and EBITDA multiple, not a PE multiple.

The one order announced today at $7m for four months is more than the total first half revenue for the NZ business. That is pretty good work in my view.



DYOR