JamesThe issue is that they have not quantified what the...

James
The issue is that they have not quantified what the adjustment to underlying is (at least not in what I can see for 1H23), but the reason I thought that underlying adjustment was not material was actual reported NPAT for 1H23 was $6,050k, the underlying NPAT was $6.2m so not a huge difference hence my inference that 2H23 seems to be EBITDA negative.

Even if I'm incorrect and it is positive, it does seem like they generated little EBITDA off $38.5m in mainly SUAS revenues. I suspect there is a decent margin in this, however, their costs are relatively high (~10m in Corp and Admin costs every 6 mths based on 1H23 if we strip out ~4m in commissions paid)....i suspect this is high because they had to ramp up quickly to deliver on that order in 1H23, and perhaps they are maintaining that higher workforce in anticipation of more orders (that can be filled quickly), but it will have an impact on the bottom line