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Is the honeymoon over?, page-209

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melastcracker

2,080 Posts.

30/10/17

11:46

Post #: 28307829
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Originally posted by SebTaylor ↑

Yup, I see the 2nd half year as the one to the watch.

Also looking at the last Petra report I see they were forecasting sales of $45m for 2017/18 - buts lets be conservative and say they do $35m.

Whilst AJX are targeting a margin of 40% - lets say that the average for 2017/18 is 35% over the year.

So applying 35% margin to $35m in sales gives a gross profit of $12.250m.

Operating costs for the last quarter where around $2.265m - but lets be conservative again and say they average $2.5m per quarter and so for the year $10m. Interest costs for example may rise abit if they draw down on their debt facility to fund a big order.

Depreciation etc (non cash) for last year was around $359k and employee share based payments $529k. So lets say non cash related spend (and not shown in the quarterly 4C's) is around $1m (but hey it may only be $500k).

So based on $35m in sales they have the potential for a net profit of $1.250m.

And on $40m a net profit of $3m.
I

Another thing to watch is whether they get any upfront payments from a licencing deal, which would also help cash-flow and lessen any requirement to draw down on the debt facility.

Expand

What's your view on the Petra report figures for revenue compared to the new revenue after low margins customers have been pruned? Was the Petra report using the now pruned figures in their revenue generating calculations or old figures?

Cheers

Last edited by melastcracker: 30/10/17

AJX Price at posting: 32.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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