EBIT will be lower than there stated 10 - 12m, page-53

TTN are serial downgraders, which highlights the lack of control that Management has over major parts of the business, and industry contraction.

This was the THIRD downgrade in 2014

Feb 2014: Confirmed FY14 forecast EBIT of $21m to $23m
May 2014: Revised forecast FY14 EBIT to $19.5m to $21m (first 2014 downgrade)
July 2014: Confirmed actual FY14 EBIT of $18.5m (second 2014 downgrade)
Aug 2014: Confirmed FY15 forecast EBIT of greater than $21m
Oct 2014: Revised forecast FY15 EBIT to $10m to $12m (third 2014 downgrade)

Plenty of warning signs there over the past few months, that Management are struggling to get the business to perform to expectations.....

The other thing is that I find people always underestimate the balance sheet impacts of a downgrade. There is lower OCF to support all the fixed maintenance/capex expenditure, the one off costs of redundancies, contract terminations, relocation costs etc, which are likely to have a material impact on cash/net debt position.

Cheap on current metrics, but definitely not investment grade.