The $44m revenue for FY19 would have been amazing. $32m is...

The $44m revenue for FY19 would have been amazing. 

$32m is fantastic

With only 2 quarters to go in FY19, if the revised forecast is correct we should see some real accelerated growth. I doubt they'd want to miss a target twice, so the $32m should be conservative.

The first 2 Qs of FY19 showed $6.34 and $6.83 revenue, about $13.2m, so another $20m needed in the next 2 Qs. As footnote **1 explains, they bill monthly, receive the cash 3 weeks later, so up to a 7 weeks delay in generating the revenue to actually receiving it. The 4Cs are based on cash accounting whereas the FY19 figures will be accrual accounting ie when the revenue is generated not received. In a fast growing company the 2 figures can be vastly different, however it is the accrual figure that is important - this is what every other company is measured on.

The last 3 Qs 4Cs have all had reasonably flat revenues. Some of this would be attributed to the Qtly variances discussed on the other thread. However if we're going to make the revised $32m, we can expect some impressive growth over the next 5 months. As I said above they wont want to miss a target twice - that is very bad form, which hopefully they'll be very aware of.

**1  From asx Nov 2017 update

LPE bills its customers monthly, with all electricity retailers required to have 14 day payment terms Any bill issued after the 14th day of a month, will not be recognised as cash receipts for that month. This has a material influence on quarterly financial reporting where on a levelised volume the cash receipts could swing up to ~14% under the billed amount for the quarter .......LPE can confirm that our average accounts receivable is currently 21 days, as noted in our audited financial report