ASH Training Business

I was going back through the prospectus materials and noted that the ASH training operations were generating EBITDA margins in the 35%-40% range during the first half of this decade. Although increasing regulatory costs will likely prohibit these margins from being achieved again, given current run rate training revenues of about $8m (and growing), if ASH can achieve 20%+ margins for this business, it will mean an additional $1.6m of EBITDA, or a 20% increase on the 2018 result.
I also suspect the market is being slow to drive the ASH share price materially higher for 2 reasons, 1) the recent improvement in performance has been relatively short and they are looking for further track record and 2) there is general market nervousness about a potential economic downturn driven by a weaker Aust housing market. In my view issue 1) will be (at least partially) addressed by a solid H1 result and issue 2) can't be completely ignored, however the group's increasing exposure to the infra sector should provide some protection against a broader downturn - Concept Engineering should benefit from increased government spending as infra is a key source of fiscal stimulus during a weaker economic environment.