Small RFT following on HC, but good conversation, thanks!31st...

Small RFT following on HC, but good conversation, thanks!

31st December 2021 they reported Total comprehensive income for the half-year attributable to the owners of
Rectifier Technologies Ltd of AUD $535,337.00 (around 8.16% of 1st half revenue).
Therefore, on 31st December 2022, we'd expect them to report Total comprehensive income for the half-year attributable to the owners of
Rectifier Technologies Ltd $1,604,593.00 (around 8.16% of expected 1st half revenue of around AUD $19,664,133.00).
** Note: this will be around + 200% profit for the period year on year).

^^ on the above statement. I would expect 1H profit to be higher due to economies of scale, the fixed running costs (wages, staff, rent, manufacturing) would be somewhat fixed, this is shown in the financials.
2019 - Revenue = A$18.26M, Profit = A$2.13M
2020 - Revenue = A$16.13M, Profit = A$1.82M
2021 - Revenue = A$11.84M, Profit = A$0.54M
2022 - Revenue = A$14.76M, Profit = A$0.51M (Note staff costs increased from stagnant for 3 years to $6.3M a 23% increase)

You can see that particularly employee benefits expense is almost stagnant 2019 to 2021 before increasing ($5.4M to $5.1M to $5.1M to $6.3M), this will be RFT preparing for a period of high activity with the Tritium order. The costs for Other/Finance/Depreciation is also somewhat stagnant ($2.3M to $2.2M to $2.7M to $3.2). Another interesting note is that the revenue / raw material spend is roughly 2-3X historically, also the preliminary final report showed that inventory has already significantly increased (this will be Tritium order). One thing that is evidenced in the RFT reporting is that it is a very simple company, and stable from the earnings report. They do one thing, and they do it relatively well.

Based on your workings above, which seems at a high level good, pending any delay in Goods receipts (which is a risk, parts/spares/inventory management is key at the moment as there are delays with manufacture and shipping everywhere), I beleive RFT could be quiet profitable in 1H.

1H 2023 - Revenue = A$18M (assumes some Tritium orders go into 2024)
1H 2023 - CoGS = A$12M (an estimate based on 2022 - where total CoGS was A$17.5M, i.e. RTF spending way more to fill the orders)
1H 2023 - Profit ~ A$6M