Originally Posted by
simla
Sorry to disagree, nay-sayers ... but a very satisfying report indeed.
Good cash position happily.
Good sales. America back where it was before the difficulties, but Europe already outstripping them. Asia continues to drag it's feet though.
Also, one of the clearest and well presented reports for a while, which I appreciate. I thought the key points at the front were pretty fair comment myself.
I'm not going to give my detailed view on it as I have in the past, but the following point strikes me as interesting.
(a) Take the expected sales increase this coming year (p3) and multiply it by their profit margin (revenue/cost of goods sold, p25) for the expected increase in gross profit from increased sales.
(b) Calculate their loss second half only (full year loss less the loss reported in September) rather than the full year loss which includes lower sales level in the first half.
(c) Remove non-cash items (depreciation, amorisation (p25)
.. then could they be cash-positive on sales before the year is out? Just a possibility, and still overheads to cover. Do your own maths, and future obviously unknown anyway.
Well, yes or no on that, clearly their position just takes on more and more strength. I'm with Gr8day on this. Historical events seem unlikely to repeat now in my mind.