Result is in line with my modelling. Guidance looks alright, especially since they always under promise and over deliver. Management have identified M&A as an opportunity to achieve further shareholder wealth which I'm a big fan of.
This really is an operating margin story though, if they can be smart with the next acquisition and get access to the NFP sector this really will become a cash making machine.
What really caught my attention is on pg 58 of the report where it seems they are expensing Product Design and Development through COGS. You would argue that this could be capitalised and that EBITDAF is actually higher....
Pretz
PPH Price at posting:
$1.54 Sentiment: Buy Disclosure: Held
