Another one of those companies whose share price got savaged by the 2020 Caronavirus sell-down, but whose business performance has barely skipped a beat.
They reckon this year's Revenue will be $135m
This means that half-year Revenue for the preceding 4 half-years to June 2020 was as follows
(change on pcp in brackets):
So, that means Revenue growth in the current half will be +5%, which is quite a feat given they are cycling a strong previous corresponding period, not to mention the not-so-small matter of the shut down of the Australian economy over the past two months.
Profit for FY2020 of is expected to be $9.2m (on a pre-AASB16 basis, which is relevant for like-for-like comparisons with FY2019 which was also pre AASB16), which will be be a 6% increase.
Objectively, that reflects a very high degree of business model resilience, given the inordinately poor macroeconomic backdrop.
Any business can perform well when the conditions are favourable.
But that the true quality of a business is only known once its performance has been observed during really bad times.
On that score, the company is of even higher quality than I had thought during the years that I've owned it. While I never sold any shares, unfortunately I did not add to my shareholding when the stock got sold off in recent weeks, because I was unsure of how it would perform operationally and financially.
That's a lesson learnt.
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SNL Price at posting:
$3.82 Sentiment: Hold Disclosure: Held
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