Ann: Half Yearly Report and Accounts, page-140

In the original announcement for this acquisition, FY17 PBT (or EBIT) was $457k. So revenue is the same byt they revised down claimed profitability in this document. That or they overstated profits initially as part of pumping up the deal at the time (help out the mates they gave cheap stock). Despite selling proprietary products and with the costs of CFDA and such being picked up by JAT (as per the GM documents, use of proceeds from the raise), margins were going backwards and being revised lower. The same proprietary/in-house products that are meant to be driving margin expansion and profits.



As I stated before yet got called out for not quoting facts and being "misleading", GF and Sunnya combined were claimed by JAT in their respective acquisition announcements to have EBIT margins of almost 10%. With most the revenues and COGS associated with these two acquired businesses, JAT's reported only gross margins of 6% in the HY report. This is a huge disconnect in stated and realised profitability which includes the growing contribution from "high margin" in-house products from Sunnya.

Poor governance and questionable DD by JAT who are buying low quality businesses to chase a hot theme.