How do u get 20mill profit on 90mill turnover? that's about 22% margin after tax.
I have figured out their margins - (about 5% is the norm from NSW Government -if u google "electricity retail profit margins")
16.9mill *5% is 8.45 which is near enough to the $.9mil green certificate outlay.
If they didnt have to pay that the outflow would be 17.1 -.9 = 16.2
then NP would be 16.9 - 16.2 = .7
margin is .7/16.9 = 4.1% margin
I figure their margins would be slim when they contracted ALDI.
That may their business plan ; low margin-high volume customers.
Anyway they seem to help their customers to decrease their bills or be more energy efficient. http://goenergy.com.au/energy-efficient-products/go-hub-energy-management/
Also just read their prospectus 5/6/2015
previous years there was more cash outflow than inflow - so don't know how that will change
maybe sell shares and have a go at something else (back to swing/position/momentum trading) as this could take a long time be profitable and they could easy revert back to unprofitable.
GOE Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
