Framery’s results are nothing to cheer about. It was presumably known that the high purchase volumes from the largest customer couldn’t continue forever, so the detail that sales to other customers are still growing is a positive sign. Otherwise, I would be even more worried about the situation. Sales are coming in and cash is flowing into the coffers. At this growth rate, it will be a long wait (years) before a 10-euro share price is justified.
At least this isn’t a completely questionable listing like Modulight’s. Modulight included research projects in its revenue and accounts receivable that customers didn’t even intend to pay for when the desired results weren’t achieved. Or the probability of payment was low. Once the IPO had been pushed through and the money collected from investors, it was announced that the majority of the projects in the receivables had failed, and customers weren’t asked for payment. Without this window dressing of the prospectus, the offering surely wouldn’t have gone through. They were moving in a very gray area, but this too was apparently legal, as no other actions seem to have been taken afterwards, at least publicly, aside from the grumbling on the discussion boards. The profitable growth company turned out to be a loss-making laggard once management’s discretionary, overly positive future outlooks were left out of the guidance. Try analyzing the financial statements of listing companies as an outsider in a situation like this.