eyeguy and all7 Oct 2016 15:37
i dont think you will be far off with a possible operating profit of around £1M.
looking back over the past 3 years of trading;
-sales costs have stayed roughly the same at £2.5M,
-operating costs have been between £2.4M-3M (say avg of 2.5M again for easy calculating)
-for the past 3 years revenue has stayed the same around £5 (down slightly last year due to delays but still at £4.6M)
so have been a loss making company over the past 3 years but nothing drastic.
if we look at this years revenue we would hope normal revenue would be £4-5M again. but thats without the new contracts from QM systems
before the end of 2015 year QM systems received an order for £650K from hadley industries and was due to be delivered end of 2015 so some of this money would of been held back until completion/ testing so some of this money would fall into 2016 results.
now lets look at the contracts in this year;
22/12/15 Dana Holding Corporation- £500,000
02/02/16 Dana Holding Corporation- £400,000
11/05/16 Mann and Hummel (UK) Ltd- £400,000
190/5/16 Primafruit Ltd £400,000 (due for delivery in September 2016, so maybe not receive all the money in this year)
total of an extra £1.7M possible so hopefully get 2016 revenue sitting around £6-6.5M and if costs stay the same around £5M then should be looking good for a profit say £800KM-£1 (before loan repayments tax etc)
thats not including the other 2 contracts which fell outside of the year with UK-NSI and the 2nd phase contract for hadley (which we should receive another contract for the 3rd phase after this one is complete) an additional £1.4M
i think we will get another contract before results is published in dec
all for a company with a MCAP under £2M????
value is there.
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