Is this the turnaround for DC2?, page-37

I can see where you are coming from and can understand that it will really come down to how the update is laid out.

From my perspective the additional revenue builds on a trend which started to be seen in the last quarterly. Acknowledging that in July 2021,Osborne Park/Bibra Lake had recurrent revenue in the order of $430k/qtr which equates to about $1.7mpa, Mid West DC has kicked things along substantially. You are right when you say that the revenue numbers won’t be substantially higher but will continue to show that upward trend.

FY21 Q2. $430k
FY21 Q3. $432k
FY21 Q4. $472kt
FY22 Q1. $568k
FY22 Q2. $694k
FY22 Q3. $695k +(1.5 x $150k) = $920k say, and
FY22 Q4. $695k + (3 x $150k) = $1,145k which YoY is almost 2.5 times the revenue of the FY21 Q4 without any increased revenue from Bibra Lake.

If they actually give guidance in the update that based on secured contracts at end of the March Quarter, revenue is expected to be in the range of $1.1-1.2 million for the final quarter, in conjunction with the quarterly trend of recurrent revenue growth, then I don’t see why we wouldn’t get a kick in SP. Agree that cost pressure will play a part but doubling recurrent annual revenue from around $1.7m to $3.3m should deliver an improvement the bottom line and if FY22 Q4 is annualised next year should deliver at least $4.5m revenue which could see signs of profitability.

I am not expecting a dramatic shift in profitability or SP but am looking for eps to go from the negative 7-8c range to a positive 2-4c range in FY23 with further growth thereafter. IMO that would see SP start to climb back into the 20-30c range and possibly above this. Maybe I’m being a bit optimistic but that’s what I am expecting. Happy to get some other views.