Hi @DrPete - I saw your note and was curious. I've had a quick look at the hy reports - its confusing - I reckon ring the CFO. But best I can make out, prior to the HBT acquisition there was trading between Stealth and HBT. Looks like HBT was buying from Stealth and Stealth was recording that as a "gross" sale. Post acquistion, it becomes a sale which is internal to the group and HBT is only passing it through to its members for an "agency commission/fee". As a result, gross sales looks like it has fallen (or is flat), but the actual amount of goods sold is the same (if not up a bit). I think what they've done is reclassify some revenue from agency sales to gross sales this year, to make it comparable and give more information - basically a "pro forma" sales number. I have to admit it hasn't been explained well in either document - but p 20 in the HY investor preso was the best explanation I saw throughout.

Maybe take this note to the CFO and say is this right, and if not what is the treatment you've put in place for 1st HY26?

@DrPete I believe the $10m gap between ‘sales’ and revenue is actually explained in the 4D, but it’s buried in the wording.

Sales is a non‑IFRS number where they add back customer rebates and treat the Stealth Buying Group activity as principal rather than agent. Revenue is the statutory figure after those adjustments.

The HBT acquisition then muddies it further. Pre‑acquisition, any trading between Stealth and HBT was external and showed up as gross sales. Post‑acquisition, those flows become internal and only the agency component is recognised.

So the gap isn’t mysterious — it’s just a messy mix of rebates, agency vs principal treatment, and the change in relationship with HBT. The issue is that none of this has been explained cleanly in the HY report or the investor deck, which is why everyone is guessing.

Thanks @rh8178 and @Foxlowe.

Basically it's some combination of rebates and counting some portion of "agent" sales as revenue.

p20 of their 1H presentation says they counted $2.7m of agent revenue as sales. They give the cryptic (to me at least) explanation of: "Post HBT acquisition, certain previously recorded revenue is reclassified from gross (principal) to net sales (agent basis), now reflecting margin recognition only (1H26 ~$2.7m recognised as sales)." Clear as mud for me at this point. How'd they get $2.7m given HBT facilitates $600m+ in sales? Is it $600m pro rata for 2 months post acquisition x some thumbsuck of margin?

And that still leaves >$7m unexplained. That's too high for 2 months of HBT rebates (would annualise to more than $40m). Unless rebates are only paid in Nov/Dec, and so can't annualise it? Or perhaps some of that $7m is Stealth's own agent sales separate to those from HBT?

I'm at the point of accepting Stealth won't provide the level of detail needed for me to understand it. And maybe I don't need it. I'll just have to ride out the uncertainty from their changed metrics and perhaps the overall pattern gets clearer after another couple of halves. In the meantime I'll focus more intently on their progress with profitability.

@DrPete I have concluded the same. Focus on revenue not sales. Sales can be influenced by non-economic management action (that said, revenue can be too, but to a lesser degree).

I also agree that over time (several years?) there will be trends in how the relationship of sales to other measures (revenue, inventory turns/CCC, margins) unfold, to give insights into how the business is being run and how it is performing.

I have chalked up management's sloppiness in being clear on communicating these measure to their lack of experience in running a listed company where these are all obvious questions any investor would reasonably ask. I don't necessarily judge them badly for this, it simply is what it is. Although easier to say from the sidelines.

Disc: Not held

WAM continue to buy SGI aggressively, increasing their holding from 10.7% to 12.4% +2.5m shares of which 2.0m were purchased on or after the release of H1 results (I they were in over half the trades over that period). My take is that we are seeing a changing of the guard as small early investors lighten or exit cashing in large gains and WAM is taking the opportunity to build for the next phase with the subsequent liquidity provided:

pdf

I expect the share price to do a random walk until we get a substantial business update (full year FY26 probably), no idea what the range will be, but would be surprised if it spent much if any time under $1.00 or over $1.50… but I would be surprised if I was surprised!

Disc: I own RL+SM

Nice to see a larger investor thinking long-term and building a stake post-results. Obviously comfortable with where the company is headed.

Great time in the cycle to plant some seeds, and grow some money trees.

Mike also dipping in: https://announcements.asx.com.au/asxpdf/20260303/pdf/06x00j6q4yhsdl.pdf

Small $21k, but from his own pocket, not just shares given to him by the company.

I know the volume is low today, but he's going to have to reach a bit further into his pockets to stop it's latest slide....lol

oh well, the vibe is "sea of red" for my portfolio at the moment,

my personal goal is to just check in on strawman, and not look at my trading account for the moment...lol