back in profit , page-4

I am disappointed I couldn't go along and haven't had a chance to speak to a broker friend I think was going along , will update the forum if I get any feedback form someone who did attend

I did a bit of a spreadsheet on the numbers this afternoon and it looks really good , but only if they can continue the revenue growth they aim to .

If you look at the 17 m revenue and use the 44% Gross profit number that equals $7.5m Gross , deduct $500k in interest on the debt and the $6m operating cost and it works out at the $1m forecast . Even room for more as they predict the $6m to be lower than that

If they got to say $20m revenue , which was actually on the presentation from the chair , that would be $8.8m Gross Profit , less 500k interest and 6m operating cost and the number is $2.3m Nett

Debt is coming down so interest cost is reducing .

Lots of upside if they can grow the revenues , continue to reduce debt , increase the GP margin to over 45% and maintain the expense number on increased revenue and in my view 30c wont take long at all

I would like 50% + of profit to go towards debt reduction , (aggressive ) , 25% towards topping up operating cash , and the balance used for dividends then 1c is achievable (330000) if they can get to $1.32m

For me the key is the December result to see just what has happened , forecasts are one thing , but actualls are what really counts and something you can bank .

Seems as though the seller of the last 3 months is still selling small lots at 20c and 20.5c instead of the previous 19.5c level of a few days ago

As caketin said the other day it must be almost done .