Does anyone have any confidence in this management to achieve revenue and profit forecasts they give? It doesn't matter how many long term contracts they sign if they do not make any money on them. Of particular interest in the 2006 financial report is: page 24, the revenue figure of 50,874 vs cost of sales of 53,084. This is before the G&A, finance expenses etc. Despite overseeing a Net loss of $42 Million Dr Hari Nair received a pay rise from 587,264 to 976,924, and the top 17 directors and executives total pay is 4,611,974.
The current reduced 2006-07 forecast is 18-24M EBITDA, however in my opinion I think they will be lucky to reach 10M EBITDA (and I expect a net loss).
I believe this company is still a good long term proposition, however management still has much work to do.
Do your own research!
LFE
life therapeutics limited
