I'm a bit on the fence with this report. The sales number is...

I'm a bit on the fence with this report. The sales number is quite disappointing obviously as its going backwards given they were expecting it to be flat or a bit lower but its >20% lower... I would say that's quite material. Hopefully the expected uplift in h2 will eventuate with all the coles deal + jcc..

That said, the company seems to be keeping its costs in check given the gross margins are now at ~27% which is double the fy22 number and assuming there's no growth rate and we end up with a rev number of 30m could result in a 2-3m profit for fy23. If that's the case, then there might be a potential 50% upside using a pe of 26 for small cap stocks from current market cap. Any thoughts?