Gross margin of 12.2% is very ordinary! ($3.4m margin over...

Gross margin of 12.2% is very ordinary! ($3.4m margin over $27.9m sales)

With the increased in cost savings to come (lets say another $750k over 6 mths). Over the next few years revenue to get up to $80-$100m (lets say $90m)

So in a couple of years we're looking at $45m half year revenue which equates to gross profit of $6.23m (Grossed $3.4 up by 1.61 (45m / 27.9m ) and added on $750k for savings. Throw in volume/scale efficiencies and we might be looking at $8m GP.

With increased resource (people) required to fund increase in JSF components (good thing is the capacity is there) we might be looking at san EBITDA of $3m. R&D spend expected to continue to slow so might be looking at net profit approx $1.5m in a couple of years.

We really need a new project at a decent margin.

The cost cutting exercise was an obvious one. The revenue pipeline was already in place. QHL should be able to get to profitability without having to strategically do too much, so its a bit rich for Mark to crow that's what he'll be judged on.

They need to prove they have a cutting edge product that market participants want.

If they can do this, the business can obtain net profit of $5-10m by 2020 which value the business between $100-$150m