So VMX was just break even on profit after tax, but EBITDA of...

So VMX was just break even on profit after tax, but EBITDA of $1.1 million and cash inflow of $2.55 million, so net cash on the books. That was on half year revenue of $30 million and they expect over $40 million in second half so it should earn a reasonable profit for the full year, given overheads were $3.2 million in first half, excluding finance costs and depreciation. That seems to imply a pre-tax profit margin of 11% excluding overheads. So if overheads unchanged and margin holds they should earn about $1.2 million pre-tax for the year, or post tax around 1 cps and a PE of 11 at the current share price. Seems reasonable until they deliver.

If they can do $80 million the following year they start to look cheap, with $2.2 million pre tax and $1.54 million post tax depending on the tax rate. That gives closer to 2 cps earnings and a PE of only 5.5, with the possibility of a franked dividend (sat 1 cps giving a yield of 9%). We need more evidence they can deliver and signs the order book for next year is strong, but it at least seems they have turned the corner into profits.