My thoughts are that Cirrus paid $1.5mil for Ngage therefore if Ngage is turning over ~25m then Ngage was making around 375k profit which seems on the low side. I came to this by knowing that the current multiplier for these sort of companies is around 4 times ebita.
Long and short of it is they really need to restructure as the share price will not materially increase unless they start making around 10% + profit of revenue, so you would need to see the profit around 4- 5 mil. Seems like a long way to go.
Management must be focussed on stripping out the waste, running leaner operations and going through a major restructure in FY2018 else how will they achieve larger profit?
CNW Price at posting:
1.7¢ Sentiment: None Disclosure: Not Held
