As at the latest quarter CST was cash flow NEGATIVE.
Let's assume sales for 06/07 of approx $10 million increase to $20million (roughly 1 million tests) for 07/08. So for 07/08 let's assume a continuation of the gross profit percentage of about 50% that then gives a rough gross (trading) profit figure of around $10 million, maybe even a bit more. Unfortunately for shareholders that is not the end of the math, from that $10 million (+?) gross profit we then have to deduct those unfortunate niggly little operating expenses such as salaries, marketing, etc, etc. which appear to be running at $8 to $10 million p.a. Net result probably would be break even or a bit better for 07/08 at that level of sales.
CST Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held