Ann: XTEK Group CEO - Henslow Investor Presentation 27 Jul 23, page-4

In the current environment, companies are not being rewarded for potential, but rather profitability and cashflow because cash is no longer free

yes they have made good progress over the last 18-24 mths, but the facts are:
- this is a manufacturing/distribution business so margins are a factor (FY21 29%, FY22 47%, 1H23 51% & FY23 is going to be lower than that 51%)
=> those margins are inflated because of the rushed order and who needed it
- Operating costs since 1H22 have been running at ~10m each 6 mths (excluding the commission they paid in 1H23) so they have a significant cost base to cover

If we assume that a normalised margin is 30-40% (that is still high compared to pre-FY23)...say 35% at midpoint, then they need sales of ~$60m to just break even

For this type of business carry that level of costs, they cannot rest on their laurels.....they have to continue to bring in >80m in revenues just to stand still (i.e. not grow, but just have a marginal return for shareholders.......so yes that is what I've taken from that preso)