Alf EBITDA is the best metric for us in this industry as to the...

Alf

EBITDA is the best metric for us in this industry as to the underlying cash flow to be generated by the business as we are one of the few industries that gets a "free kick" from the ATO in that we get highly acccelerated depreciation on our hardware. We write the hardware off over a 5 - 7 year period yet the hardware actually lasts >10 years and in some instances I am am aware of hardware that is >15 years old!

That coupled with the fact that the underlying contracts are 5 to 7 years long and then >80% of the clients resign with you based on the fact you have done a good job, you have not only long contracted revenue but after the asset has been written off, high net profit.

We are a bit like a fine wine that gets better with age from an NPAT point of view. IMHO, DYOR