RE: Clear as mud8 May 2024 12:19
Davey - I agree with you to some extent and I am an ACA. Cost of Sales of only $200k on $5m revenue is very suspect ... does this specialised equipment really cost them next to nothing to make ? The huge increases in Trade Receivables and Payables are also ridiculous in proportion to the Revenue ... but I do think this can be explained by some bizarre accounting.
In the notes they refer to the "agreement with SLB was expanded in December 2023 for a cash consideration payable to Plexus of US$5.2m to enable SLB to use certain POS-GRIP technology on a worldwide basis" My gut tells me they have included this $5.2m as both trade receivable and payable ... remove this figure from both sides of the Balance Sheet and you have a more sensible picture ... of a growing and profitable small company !!! I joined in six months ago at 20p so am underwater, but feel there is a positive story to tell and continued contract wins are the key