The Run Rate referred to previously is taking the PPH result in the second half of FY20 (excluding any contribution from CCB, be it Revenue or Expenses) and annualising this number.
Also if we look at the Report for the merged entity, worth indicating the contribution from CCB and/or any one off costs associated with the acquisition. Herewith the detail :
Revenue ...................+ USD 4.5 m
Third Party Costs ...... Nil
Gross Profit ................ + USD 4.5 m
Gross Margin ............... + 1%
Operating Expenses ..... + USD 8.5 m
So, in theory, the inclusion of CCB has come at a cost of USD 4 m (first 3 months). You will remember at the time of the acquisition, the Company indicated that the CCB acquisition would be earnings accretive in FY2021, with the real benefit showing FY2022 onwards.
One other bit of info which is material. the Company has a deferred Tax asset of $13.225 m across it’s operations and also have deferred the recognition of just over USD 40 m of R&D expenditure . Future tax benefit.
I have lifted my 12 month forward valuation accordingly. Now AUD 9.28.
Rokewa
PPH Price at posting:
$6.61 Sentiment: Buy Disclosure: Held
