It is worth detailing the previous contract wins as well, as these add to $2.6 million on an annual basis, though less in 2017-18:
1/8 takeover of State Security annual revenue $1.8 million, though payment is made by monthly instalments from cashflow. Said at time little addition to overheads.
14/9 covert retail annual revenue $600000
18/10 schools/local government annual revenue $200000.
If this stadium contract is $3 million in this half year that suggests revenue could rise from $18 million last year to perhaps $23 million this year, assuming $2 million from the other new contracts.
At 20% gross margin (22% last year) this generates $4.6 million gross profit.
Some rise in overheads and payments to State Security could leave $1 million profit less tax.
At a multiple of 10 (consistent with share price and last year's profit) that suggests a share price of 3.7 cps.
There is a lot of speculation in the above so we need clarification in the quarterly/half yearly.
MSG Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held