The half year result was a pass, they made 0.5m result on 45m of revenue. Terrible ebit margin. The revenue is still too dominated by product sales, but it's good to see how much managed and professional services is contributing to the gross profit. It's nearly contributing the same. That's a big tick. In the commentary it's forecast that services gross profit will cover all outgoing of the company in 2020. If that's the case, then we have some strong growth in earning going to occur in the next 18months. I think this is why the share price has react the way it is. The outlook now is extremely bullish. Now the company needs to deliver
The most pleasing part of the reports and presentation is we don't have deal with % numbers anymore, because we are provided with segment results of the business. We can now clearly see what's happening within elements of the business. If only management gave us what each city revenue and gross profit made, we would have full disclosure, maybe that's for the annual report.
CNW Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held