You are correct in highlighting high debt as a past downside to CCI Holdings (CHL).
However this problem was rectified with a capital raising last year which was all applied to debt reduction.
A couple of years ago the company had 16M in interest bearing debt, and some of the debt was attracting interest rates in excess of 10%, clearly this was not an ideal scenario. Now the company only has 9.2m in interest beraring debt, and an annual interest bill of around 0.9M, very comfortable when you consider the company posted EBITDA of 3.2M, and after tax profit of 1.44m for the first 6 months of 05/06, not to mention the very health 3.2M cashflow for 6months.
This company is now moderately geared with a very healthy cashflow.
Cheerful
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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