Ann: Exclusive Supply Agreement - Gateway Lifestyle, page-4

This is solid news I think.

The RV business which is holding them back I think will get resolved one way or another by next year (hopefully they'll sell it or second best, wind it back to a profitable niche). It's got to be tempting for them to focus on low cost accommodation/buildings instead of RVs for growth. It seems to be continuing to grow its revenue (and it's profitable).

These cheap houses seem to cost $200K+ (looking at the website http://www.gatewaylifestyle.com.au/for-sale) , I imagine the land is probably fairly cheap, maybe FWD gets $50K to build one (no idea, just guessing - any thoughts?)

Not sure if FWD just build the shell or fully fitted out? (I expect from their Mining background they would be doing the lot).

So from this deal e.g. 1800 x $50k = $90m revenue, $9m profit (over 2 years?)

Any thoughts from anyone more familiar with this type of deal please?

Cheers
pb