FY18 had a number of contract project completions that pumped up the revenue and financial results for that year. They are lumpy and one-off to some extent.
I think FY19 and beyond will generate more of the recurring revenue as BOO (Build Own Operate) deals increase. That also increases the depreciation.
It does bug me when companies only forecast to EBITDA. Why not forecast NPAT? After all, Interest, Tax, Depreciation and Amortisation are not only very predictable, they are probably the only predictable element of the whole business.
So I am guessing that there will be a more significant hit to EBITDA because of depreciation (from FY19 BOO and also the late FY18 ones).
