RE: Broker note13 Nov 2019 20:17
You're absolutely spot on with your sentiment although I think your figures are a bit light. We know labskin has an 80% profit margin and Rhinocloud services even more so I think you can confirm £3m GP on £4m T/O is still conservative. I think the main difference will be the T/O will be much greater. The £4m estimate is based on only a 30% success rate of potential orders in the pipeline and this pipeline will continue to grow rapidly month on month. Gerard isn't the sort to set false expectations. Also, maybe for such a dynamic expanding company, a PE ratio of 25 is more appropriate. My guestimate is a T/O of approx £7M with a Net profit of £4M - £5M. Even with a PE of 20, then you're looking at c£80M....7/8p....this is all imo and if it doesn't happen next year, then it will in 2021. The company is going global...I'll be here until £30M plus turnover when we get taken out...I don't think I'm the only one either..I've been in shares that have have taken 4 years to go to the dogs...this will not happen here...buy and hold is all you need to do. GLA