Austco provided a short update on the first quarter of the year. The update was light on details, with no mention of profit or cashflow numbers.

This could be interpreted negatively, but I’m not certain that’s what this means. I think it's more likely that they are using their privilege to not have to report these. 

Whilst microcap Jesus gave them some grief on Twitter for reporting the order book in a very selective way which I agree with, it feels like the market is missing that growth with acquisitions is coming in at 90%.

If we use the same profit margin as last year, which was actually quite high at 13%, my back of the napkin math is that they may end the year on a PE of around 8-10.

If the organic growth can be maintained at 15%, then the fair PE should be somewhere around 15. This implies fair value on the stock somewhere around $0.45.

I’ve only looked at the results quickly from being tied down with work, but I make it that the TLDR on Austco’s results is that they are mixed with growth that is yet again to come ‘in the near future’. 

It’s not like they’re making this up because the continued and impressive growth of the order book supports this (up $5M to $44M total since reported at the AGM). But still, I’m a little surprised given I thought management had hinted they would start to chip away at the order book. 

Perhaps someone that’s more properly read could shed a little more light and offer their opinion. Certainly nothing worrying here with top line of 11%, but thought we might get more, especially considering recent acquisitions (although I admit I reckon they would have only just been integrated and barely had time to add).