Recent Insider Transactions • Dec 11
Founder recently sold AU$9.4m worth of stock On the 9th of December, Stephen Smith sold around 6m shares on-market at roughly AU$1.59 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Stephen's only on-market trade for the last 12 months. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 2 highly experienced directors. 1 independent director (3 non-independent directors). Independent Non-Executive Director Andrew Peter Kemp was the last independent director to join the board, commencing their role in 2006. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Recent Insider Transactions • Sep 02
Independent Non-Executive Director recently sold AU$198k worth of stock On the 30th of August, Andrew Peter Kemp sold around 127k shares on-market at roughly AU$1.56 per share. This transaction amounted to 8.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Reported Earnings • Aug 27
Full year 2022 earnings released: EPS: AU$0.11 (vs AU$0.10 in FY 2021) Full year 2022 results: EPS: AU$0.11 (up from AU$0.10 in FY 2021). Revenue: AU$125.5m (up 47% from FY 2021). Net income: AU$13.7m (up 6.8% from FY 2021). Profit margin: 11% (down from 15% in FY 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 2.9%, compared to a 23% growth forecast for the Aerospace & Defense industry in Australia. Over the last 3 years on average, earnings per share has increased by 34% per year whereas the company’s share price has increased by 30% per year. Valuation Update With 7 Day Price Move • Aug 20
Investor sentiment improved over the past week After last week's 36% share price gain to AU$1.57, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 22x in the Aerospace & Defense industry globally. Total returns to shareholders of 165% over the past three years. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. 2 independent directors (3 non-independent directors). Independent Non-Executive Director Russell Cole was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Feb 26
First half 2022 earnings: EPS in line with expectations, revenues disappoint First half 2022 results: EPS: AU$0.048 (down from AU$0.057 in 1H 2021). Revenue: AU$55.6m (up 44% from 1H 2021). Net income: AU$6.07m (down 16% from 1H 2021). Profit margin: 11% (down from 19% in 1H 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 4.4%. Over the next year, revenue is forecast to grow 14%, compared to a 4.4% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has increased by 26% per year whereas the company’s share price has increased by 22% per year. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improved over the past week After last week's 17% share price gain to AU$1.19, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 22x in the Aerospace & Defense industry globally. Total returns to shareholders of 181% over the past three years. Upcoming Dividend • Sep 23
Upcoming dividend of AU$0.05 per share Eligible shareholders must have bought the stock before 30 September 2021. Payment date: 29 October 2021. Trailing yield: 5.1%. Lower than top quartile of Australian dividend payers (5.4%). Higher than average of industry peers (1.7%). Recent Insider Transactions • Sep 02
Non-Executive Chairman recently sold AU$127k worth of stock On the 1st of September, Craig Baker sold around 150k shares on-market at roughly AU$0.84 per share. This was the largest sale by an insider in the last 3 months. Craig has been a seller over the last 12 months, reducing personal holdings by AU$93k. Reported Earnings • Aug 29
Full year 2021 earnings released: EPS AU$0.10 (vs AU$0.043 in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: AU$85.2m (up 9.1% from FY 2020). Net income: AU$12.8m (up 219% from FY 2020). Profit margin: 15% (up from 5.1% in FY 2020). Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 23
First half 2021 earnings released: EPS AU$0.057 (vs AU$0.02 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: AU$38.6m (up 48% from 1H 2020). Net income: AU$7.26m (up 390% from 1H 2020). Profit margin: 19% (up from 5.7% in 1H 2020). Is New 90 Day High Low • Nov 26
New 90-day low: AU$0.67 The company is down 11% from its price of AU$0.74 on 28 August 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Aerospace & Defense industry, which is down 5.0% over the same period. Upcoming Dividend • Sep 25
Upcoming Dividend of AU$0.025 Per Share Will be paid on the 30th of October to those who are registered shareholders by the 2nd of October. The trailing yield of 6.7% is in the top quartile of Australian dividend payers (5.7%), and it is higher than industry peers (2.1%). 
