Can see where you're getting the market cap number from but not...

Can see where you're getting the market cap number from but not so sure on NPAT. 2014 result included one off cost of 400k related to head office restructuring. Then there is 550k depreciation/amortisation charge largely related to intangibles. This can be added back since research costs are expensed and capex is minimal.

So once you take out the R&D tax benefit and add back the above, you get to a profit figure of 1.2m. Then there is the contribution from recently acquired businesses which is 918k and 200k. This takes us to $2.3m.

The acquisition numbers are pre-interest and tax. Net impact of interest may be zero if new debt is offset by convertible notes being converted. Acquisitions are paid over a number of years so it isn't neccessary to raise all the money upfront.

8.6m of retained losses should mean there is minimal tax to pay for some years. Therefore, 2m+ earnings is closer to reality than 1m-. Of course there is also the impact of major new contract wins to consider.

Chairman Murray d'Almeida founded Retail Food Group and recently appointed director David Johnstone has impressive acquisitions experience. PEH is a rollup company with able management and blue sky potential in the form of Envirosuite.