Reverse Corp provided an earnings update for HY15 this week, and confirmed things were still moving in the right direction:
Revenue $4.51M (up 4%)
EBITDA $1.84M (up 16%)
NPAT $1.05M (up 56%)
So revenue nearly flat, with increased profitability thanks to more efficient operations at 1800 Reverse. OzContacts is now breakeven, so we can anticipate some earnings accretion from this in FY15.
Of note: Recievables have blown out from $658k to $900k (up 37%)
Current cash in bank sits at $6M though, meaning at a market cap of $14M, REF is generating $2M a year cash off a business valued at $8M, a P/E ratio of 4.
There is still the risk of revenues falling off a cliff, but as I said earlier, this is definitely in the cigar butt territory.
The upside is for improved profitability of OzContacts.com.au, and revenue growth from 1800-Reverse to remain flat at least, allowing REF to continue generating cash.