Solid. Results hit all guidance metrics. Forecast looks huge,...

Solid. Results hit all guidance metrics. Forecast looks huge, >40% revenue growth, and increase in EBIT margin, 16% for year, but 19% for the last half.

So my targets for 2014 are:

Revenue: $40 - 50m
EBIT: $8 - 10m
NPAT: $5.6 - 7m

EPS target:
5c-7c

I am not sure what share issue # they used to calculate current EPS of 5.4c. They have basically doubled the number of shares on issue in the past 12 months. Can they increase the EPS this year then? Well I think so.

They have $11m of cash to play with, which basically provides the blue sky, and why I think they will smash those targets in the next 12months. The last couple of acquisitions look to have been bought on Price/EBIT multiples of 6.

So if they could leverage that cash for a couple more similar sized acquisitions ($6m each) and add another $2m EBIT plus accounting for the momentum of the second half to continue this year for current business, then its not hard to imagine EBIT numbers coming in at >10m, and EPS>7c. It feels like these businesses are low capex, so potentially high dividend pay out ratios moving forward.

At sub 70c RXP is sounding mega cheap to me. I want $1.00+ post AGM and confirmation of targets or ex next acquisition (which has been flagged as a potential this quarter). If this gets sold on these results or response is muted I will be buying with my ears pinned back.