Ann: Appendix 3B, page-19

My buy went through. Now I'm a holder, not a buyer.

Anyway, is there any good reason for the SP to be down?

Another question: how reliable do you think the business is? E.g. what is the probability of decreasing revenue and profit?


Something that really stands out to me is the FY14 H1 to H2 growth in revenue and NPBT.

From $4.9m NPBT in FY13 ($2.45m per half) to $3.3m in FY14H1 and $6m in FY14H2.

Was the H2 result due to seasonality? I'm guessing not. Was the H2 result due to acquisitions? I'm guessing yes, that half of the growth was from acquisitions (since they said 45% of the employee growth was organic).

I'd rather underestimate than overestimate, so let's extrapolate the H2 result to the full FY15 with no additional growth (though employees have increased 12% further since EOFY). That would be $12m NPBT, $8.4m NPAT assuming 30% tax. $0.063 EPS, 8.5 PE. For example purposes, if they declared a dividend at 50% payout ratio, it would be $0.031 PA for a yield of 5.8%.

A PE of 8.5 looks really cheap considering the growth rate. The Software & Services sector has an average PE of 20, Though the shares on issue seems to be a bit unruly lately.

The single analyst covering RXP on Commsec projects $0.073 EPS and 7.3 PE in FY15. That is 16% above my extrapolation, roughly in line with the 12% employee growth since EOFY14.