Fy19 was an impressive year for KOV but FY20 might not be so rosy (particularly 1H20 results). Two reasons & they may be related:

(1) 2HFY19 was frenetic as the coy completed infrastructure projects. 1HFY20 will be more sedate

(2) The announcement of a very likely bad debt of $1m as announced on 22/8/19  will negatively impact $0.7m on 1HFY20 results - hopefully this is not a systemic weakness in account/customer selection. 

My estimates for FY20 are as follows:

Revenue $58m - just less than FY19 - EBIT at 6% of REV rather than 6.7% given the bad debt impact so FY20 EBIT of $3.5m and NPAT of $2.5m or eps of 22c. I am conservative in valuations so my IV is around $3.00 to $3.20. I have seen IV's as high as $5.

Long term, if the much used graph of Australian infrastructure projects is to play out then FY21 through FY24 should be better years.

But I have a MAJOR CAVEAT: If analysis suggests that KOV has a future and it is trading under or around its IV, why haven't the directors and management dived in? Their holdings are miniscule to laughable.