Ann: MTO 2018 Full Year Results Presentation, page-3

Hi Ben, I'm reaching a similar view. the Cassons acquisition rescued the result. If you back out its contribution the core (existing) business was weak. like-for -like revs down 6.8%, leading to very significant decline in profits from the dealerships. The dealerships contributed less than 25% of the total MTO NPAT!

There was a really good slide in the interim presso showing the operating leverage ... no counterpart to that slide in the full year presso, but you can see the impact of that operating leverage in the final result. When we start seeing LFL revenue growth from the dealerships, profits should climb very significantly. That's part of the reason why I will continue to hold.

(PS. I think Cassons profit declined YoY too. been trying to reverse enngineer its full year NPAT from the various announcements - I get NPAT for it of $9.5m, down $1.9m YoY despite some really good revenue growth for that business. No explanation from mgmt re: trend in Cassons profit that I saw.)

Outlook statement seemed appropriate IMHO. Consolidate, improve systems, manage costs, all very sensible. Still looking for more dealerships to add. I still really like the roll-up story. GLAH