onwards and upwards?, page-17

Some clear, immediate points:
* Improved transparency (good).
* Break out in classification /distinction between revenue and movements in WIP - counted in as revenue) (good).
* Increased cash at 30/6/215 to $97m (good).
* Increased current payables from $179m to $597m (bad).
* Increased receivables from $183m to $616m (???).
* Net debt is $623m but this is after taking cash into account (understandably so). Gross debt is $720m (short and long term), vs $126m previously. (challenging).

* Operating cash flow is down $14m YOY (not good).
* Receipts from customers vs payments to suppliers and employees is down (F14 = $67.5m; F15 = $56m). Bad.
* Tax paid - F15 $8m vs F15 $6m. Down.
* New borrowings (net of repayment of borrowings) - F15 = +$81m; F15 = +$528m. Not good.
* Dramatic fall in NTA backing. F14 = $1.50. F15 = $0.63. Bad.
* EPS fell YOY - F14 = 38.1c. F15 = 35.1c (34.8c diluted). Poor.
* UK now larger than Australia. Interesting. In f16, likely to be 70%+ UK.
* AU revenue +$69m. UK revenue +$72m.
* AU NPAT - $37.1m (F15) or 12.16% (in F14 was 14.3% or $33.65m.) Not good.
* UK NPAT - $49.9m (F15) or 17.8% (in F14 was 21.4% or $44.345m). Rapidly slowing.
* Dividend franking is 40%. Will further reduce in F16.
* QLD PI litigation = poor.
* Conveyancing is poor in its stronghold of QLD (where Conveyancing Works originated).
* Management teams restructured - AU, UK, Group. (good).
* Debtor days increased -to 166 (92). Not good.
* WIP days have really blown out to 462 (was 441). Up >85 days on F12 final results. Not good.
* Net bank debt /equity - was 23.9%. Now 43% (>40%). Not good.
* Return on equity. Was 15.2%. Now 12.3%. Not good.
* Interest cover. Was 17x. Now 12.2x. Not good.

Overall, a very mixed result. Some good. Some bad. And very much, a work in progress.