Great 6 months, but one swallow does not make a summer, page-7

Definitely possible. For me this is not going to come off the back of the full year results (as the guidance given at the time of the capital raising earlier in the year was pretty dire in my opinion as mentioned below), but more whether they have got their house in order, and in a place to benefit from the up-tick during 2018.

In terms of FY results, at half year Revenue was 28m, EBITDA 0.77m, EBIT 0.37m, NPBT (0.42m) and NPAT (0.5m). This included finance costs of around 0.4m.

The full year guidance given was revenue of 50-52m (22-24m for 2H representing decrease of around 6m)EBITDA of 0.7-1m (indicating 2H pretty much flat). While no guidance given for EBIT / NPBT, these numbers indicate the loss will widen (although would expect to see a decrease in finance costs due to debt reduction, but not enough to offset the wider loss).

Note this guidance was given mid-May, which at that point management should be pretty clear on FY expectations.

Realistically, given the capital raising only completed at the start of June - I don't expect any improvement to flow through to FY17. However, would hope post this they have started to win more tenders, see an overall increase in the BOW, and if they can give confidence heading into FY18 - would hope they can not only return to profitability, but on revenue of around 50-60m generate NPAT of at least 1m which would put it on a PE of around 9 at current prices.

There will be a significant drag on SP increase back to 4-5 in short term due to dilution earlier in year (shares on issues went from 240m to 678m). To support SP of 5c at a PE of 12 (reasonable for industry), EVZ would need to be generating NPAT of around 2.8m - which isn't unreasonable (back in 08/09 they had net profit of between 5-6m), but needs a huge turn-around.