NEA has reported their operating cash flow for H1 as -3.3M. I estimate H2 revenue should be around $5.3M higher in the second half, for a group revenue figure of $30M. If H2 operating cash expenditure has gone up by less than $2M (half to half), NEA should turn cash flow positive for H2.
Given NEA's half year statement that: "H1FY18 capture cost is at ongoing level of spend" there should not be much of an increase in capture costs this half. The other major component of operating spend is employee benefit expense, which I think could be around the $2M mark half to half (i.e. from $14.7M to $16.7M) based on previous growth rates in this item. If so, they should not be far from cash flow neutral for the second half. We will know for sure very shortly.
As I have said previously, I do not focus on statutory NPAT, mainly because of the complexity of tax accounting. EBIT and cash flow are far better indicators of performance.
One thing I agree with you on is your comment: "If that trajectory continues, (and I expect it to) FY19 looks good".
