Immediate thoughts here... staff payments up (as per that comment in the SIA booklet) from circa 825k (Mar-17) to 951k this quarter.
"Employee benefit expenses is MLA's largest overhead, accounting for approximately 60-64% of overheads across the period reviewed. Employee benefits expenses have increased largely in line with sales growth, with employee expenses representing 24.1% , 24.2% and 24.5% of sales in FY 15A, FY16A and FY17A, respectively. Employee benefits expenses are budgeted to increase by $522k (16.2%) to $3.7m in FY18B, which represents 28.6% of budgeted sales. Management has advised that the increase relates to new staff hires associated with both the Tuta and Clements (including Ardo) divisions."
And surprisingly quarterly revenue's largely unchanged at $3.22m vs $3.18m Sep-16 quarter. In my view the headline cashflow reduction looks somewhat misleading, would be in line with the view that OEM revenue is on the decrease and significant gains in Ardo/Clements are continuing to offset as the sales team's experience and output gathers steam.
Solid 3.2m bid @ 8.4c still there.
all IMO, DYOR etc...
MLA Price at posting:
8.4¢ Sentiment: Buy Disclosure: Held
