ERD
ERD
Financials
Pinned straw:
FY23 Results are out.
While it looks okay at a glance, I have a few issues with it.
- 6-9% revenue guidance for FY24 is too slow. Has been a distinct shift from the 10-30% growth talk from just a couple of years back
- Cashflow neutral in FY25 and then positive in FY26. That's pretty far off for a company that burned $11m in 2H ($36m for the year) with about $27m of combined debt and cash headroom.
- 3G is being shutdown in NZ and Aus, and the company needs to replace 80k units in a bit over a year (or revert to 2G). Awful headwind.
I'm glass half empty on this one.
Agreed. Stiff headwinds for a business that is already precariously positioned financially. What a disappointing end to a promising thesis.
It's hard to take guidance on face value when the recent track record of delivering against initial expectations has been poor too.
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Excellent points @mushroompanda
The ultra low liquidity with shares makes things a bit harder too. That alone doesn't usually put me off (sadly, I'm not working with million here), but you at least want some tailwinds for the business when that's true.
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