so much more potential??

AZV is essence now only comprises of the Austco business (plus the recent acquisition of Sedco assets). So I looked through AZV’s ASX announcements going back to 2006 (then trading as TSH) and specifically the announcement when they acquired the Austco business for $15mil plus further $1.5mil subject to earn-out. In this announcement Austco’s actual figures for year-ending 30 June 2006 were given as $17.9mil revenue and $3.26mil EBIT (18.2% of revenue!). No NPAT was given but assuming full 30% tax (with interest being offset by then R&D tax concessions) NPAT was probably around the $2.2mil mark.

OK, so this was pre GFC and without the costs of a publicly listed company, but does it not show potential post-GFC results for Austco in the future?

For example, currently (half-year to 31 Dec. 2012) EBIT is only 6.5% of revenue of $11.31mil. The 2006 EBIT was 18.2% of revenue! So even if EBIT returns to only 15% of revenue (after group & listed co. expenses) and annual revenues increase to $22mil (double current 1st half-year), EBIT could potentially be back up at 3.3mil and NPAT around $2.2mil!

If this happens market cap could be back up to between $13mil to $15mil.

Of course this is potential only and my opinion of it….. as they say past performance is no guarantee of future results.

JazzMan