Looks like they're trying to get their costs down to me?The...

Looks like they're trying to get their costs down to me?



The model is quite easy. It's based on their receivables book.

Target Revenue Yield = 20%
Target Cost of Sales = -8%
Target Cash Opex = -5%
Total EBTDA yield = 7%
Cash cost of sales includes interest, bank fees, data costs, and bad debts written-off;
Cash operating costs exclude funding program establishment costs, share based payments, depreciation and amortisation.

So if they hit their targets and get to a $1bn receivables book (they're certainly headed in the right direction) they should produce $70m in EBTDA for the year. In my opinion, this is a potential outcome for FY20 and this year could potentially be around $20m EBTDA.