Landaus and landminesGood to see the revenue rising with no loss of gross margin. With NI rising as well, it indicates they seem to have found their legs in making business move. I don't know if the profits come from new customers or old ones doing more business, but it's nice to see.
However, I don't see the details clearly, but I'm sure the increase in prime has hurt interest costs. Some of the loans are fixed term at fixed interest rates, but some are floating based on prime - one at 3.5% above poime. That's gotta hurt. The 3 months of interest in this past quarter was worth $1.3M to them - that's over $5M annualized, and no sign of rates falling yet. Compare that to the $3M paid in FY2021. That alone pretty much brings the repayment scheme to a halt.
Full disclosure - I don't have any stake in DCM now. I see some hurt ahead in the next quarter - higher rates, slower business, lower margins, all might combine to create a favourable entry point early in spring. If people get impatient (here's looking at some of you), it could go as low as a buck, which would be a nice entry point for the next year for a 100% gain in 18 months.