Ann: XTEK Limited FY23 Results Investor Update, page-40

I must admit I have been tracking this closely for a while. I guess it comes down to your risk profile. Essentially this is a contractor, implying that they have to start again every year and generate sales to new customers or upsize existing ones. It’s a significantly harder sales cycle than other industries.

So on a trailing basis this looks incredibly cheap. BUT given the industry - ie not every fund will touch this and given its contractor like sales requirements, it shouldn’t be on a high multiple.

We’re a quarter through the year and there have been no material sales announcements. Not looking great tbh but potentially more than priced in. Feels like value at these levels but the selling is relentless and I’m not a huge fan of contracting type businesses. It would only take a major conversion or two for this to be a lot higher. $28m market cap!

PS I’m a Scott fan from his AVA days. Did well out of that.