I like DGM very much as a business but for the life of me cannot see how they will make £2m pretax when they made an operating loss of £1.5m at half time.Admittedly there were some restructuring costs,share based payments,depreciation charges etc but even allowing for them the underlying business would appear to be breaking even at best.Do bear in mind those one off costs will still be there in the year end report even though they may not recur in H2.What am I missing?
I also note there are two brokers covering the stock. Panmure Gordon are going for £2m but Canaccord Adams have some loss pencilled for the full year.There are no estimates from the house brokers who I believe are Evolution ..unless they have changed them recently.