Yes lets get back to a "$billion plus market cap" ! margins...

Yes lets get back to a "$billion plus market cap" !

margins should improve going forward if they move to flow production.
excluding subcontracting 34% of their costs are labor (based on the FY21 P&L statement annual report).
MD is targeting a drop in labor cost of up to 40% by flow production (sequential production ) then the would be looking at 20% of their costs being labor (34% x 60%) and would push profit margins from around 10% in FY21 to a 24% Profit margin (10% + (34%-20%)) in FY23
At around 200M in revenue a 25% profit margin would be $50M on the bottom line , at a PE of 20 given it would be in a growth phase this would be your "$billion plus market cap"


Probably wont get there as they are talking about only a $6.5M (a 10% labour cost saving) but it is a good target to drop labor costs by 40%

What the MD failed to mention is that if production costs are lowered via flow production then revenue is also likely to increase with more units and is a multiplier on lowering costs similar to a gold mine mine where increased throughput (fill the mill ) also lowers cost per unit

https://services.choruscall.com/mediaframe/webcast.html?webcastid=yaLchhPM

These guys do have some stiff competition with Duratray and Schlam seems to be quickly getting market share to and the duratray rubber liners seem to be becoming popular