Low quality company with stagnant growth (year on year)
Won't dwelve much into the company but here are some company/FY22 result factoids:
- IT services company
- Market cap of $28m at 3c
- Share price has been stuck around 3c for about 2 years
- Revenue of $104m, slightly down from FY21 ($108m)
- Horribly low margins so the company is barely profitable and barely operating/free cash flow positive
- NPAT flat at just above $400k
- OCF positive $3m with cash receipts of $122m
- Strong second of FY22 with revenue of $60m
- Management is a little bit bullish about FY23 but no 'real' guidance given
If the company can continue the momentum seen in 2nd half of FY22 into the next few years AND achieve some scale this could be an interesting value play.
Sort of like Dicker Data from 2011.
