The Tz presentation started with Bouris saying they want to "Under promise and over deliver".
Tz said it would do $8m revenue and it did $8.5 with a backlog of deliveries of $3.3m
That is sales of $11.8m
They said they would do greater than $15m in 2015. Tz growth rate in Pad was 238%
Extrapolating $12m sales with 238% growth and you have revenue next year of $30m
Given the signings in 2014 of Italia Poste, Indonesia Post, UPS etc- then you would think $30m was closer the mark.
Cost of Goods sold is 40% (40% of $30m is $12m) Wages ($6m) and Head Office costs of $2m and you are left with gross profit of $10m
The market would put them on at least a 25 times multiple which would mean a market cap of $250m or 65 cents per share.
Additional points are- moved manufacturing and achieved better payment terms and cheaper costs. Tz has better payment terms with customers now they are debt free....
Asia- He mentioned Singapore, Indonesia, Malaysia and Hong Kong- and Alibaba buying 10% of Singapore Post
Bouris mentioned Singapore Post wanted all Locker Banks in Asia to be "Able to talk to each other".
Tz will NOT do another capital raising- If anything they will use a credit facility to fulfill particular orders.
A good result and as the company kept saying..... They now have a stable platform to move forward.......
TZL Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
