EBIT less one-offs was $0.9m. And "the three months revenue to July 2011 are very similar to 2009/10 period pre the NSW issues" - which suggests revenue for FY2012 is tracking to to be better than FY2010 levels of $36.2m (with EBIT of $2.2m).
There's also been some reduction in costs - including the CEO - and earnings seem to be on a positive trend, so if all goes well it seems likely that FY12 EBIT will be $3m or more - and conceivably approach the current market cap, which is just $5m.
As a measure of how low the current company valuation is compared to its turnover, consider this: the ex-MD's golden handshake would have been more than enough to pay a 0.5c dividend!
And Konekt is cash-flow positive, debt-free, and quite diversified, so I'm backing it to do ok in the event of either a recession or a credit crisis. As Carr says: "The current market turmoil will have limited if any impact on Konekt we believe as much of our revenues are related to long term contracts"
KKT Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
