a whole new ball game!

alright,

everyone would be used to people talking up different announcements for different companies on sites like this, but the one this morning definitely deserves some analysis.

Webfirm has essentially been turned around by the new board and management team in the last 12 months. Rebranded, name change, new premises, etc. This mornings announcement gives us some guidance on where they are heading.

They forecast revenue for Searchworld in June of $1mil, then forecast GREATER THAN 10% growth each month after that. In the example below I have predicted growth (based on 10% growth only) for next financial year (remember, this is only for Searchworld!).

July $1,100,000
August $1,210,000
Sept $1,331,000
Oct $1,464,100
Nov $1,610,510
Dec $1,771,561
Jan $1,948,717
Feb $2,143,589
March $2,357,948
April $2,593,742
May $2,853,117
June $3,138,428
$23,522,712

So, let’s say they reach $24 mil revenue for Searchworld, before looking at any other area of the business, if they make 20% profit in Searchworld, seems to me that $5mil profit from searchworld is achievable with a market cap of around $9mil.

Obviously we know the other areas of the business continue to grow also, should be a strong finish to this financial year, before next year is cracker!