"However it does appear that DTL results are becoming more skewed to the second half, although that could just be a bit of an optical illusion at this stage resulting from the acceleration in earnings off the 2nd half 2013 low."
Yes, measured at the Pre-Tax Profit line (to avoid distortions from the tax rate) this second-half result is 2.2x higher than the first-half result [*].
But that's not because the DH15 result was particularly weak; it wasn't. DH15 Pre-Tax Profit was a full 17% higher than the DH14 result (and the DH14 number, itself, wasn't particularly soft... it, in turn, was 40% higher than DH13)
No, the reason the JH16 result was 2.2x higher than the DH15 result is because...well... it's simply nothing other than an absolute cracker of a result.
For context, JH16 Pre-Tax Profit is 41% higher than JH15, and JH15, in turn, was 33% higher than JH14 so this latest result is cycling a big base.
The fact that that company has been compounding growth over the past 12 months off already-high levels is testimony to a business that is simply humming.
This is a business that has achieved Revenue growth that has averaged 15%pa [2] on a CAGR basis for the past 15 years (with only one year where top-line growth was negative), and the only reason that profitability has ever eased back (2013/4) is because of the management's far-sighted strategic vision that requires consistent investment in the business.
And the results of that sort far-sighted strategic vision are the successive record results that were generated in the years following 2014, including this latest out-of-the-park result (where EBIT came in at $13.5m, compared to my forecast of around $11.0m, but I strongly suspect that is as much a reflection of my modelling limitations, as much as it is a case of a very strong result).
It's a company that is a proven generator of wealth for its owners.
[1] Historically, (prior to the transition years of 2013 and 2014) the ratio of Pre-Tax Profit in June half-years has been around 1.5x that of December halves
[2] This 15%pa CARG in long-term Revenue has been achieved without any recourse whatsoever to shareholders for capital.... Issued Share Capital @ 30 June 2004 was $8.19m; that figure @ 30 June 2016 was $8.28m
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