Ann: Preliminary Final Report, page-3

I think some were expected a positive EPS? Anyway, I took advantage and topped up at 19.5c ... didn’t get enough tho!

I think it’s a bargain but some may find it hard to value given so many moving parts, high amortisation, new revenues coming on during the year, others growing strongly. Cash is king and that’s how I’m looking at it.

My simple model ...

- $11.2 EBITDA FY18
- plus, extra $4.4M EBITDA to account for full year Elton earnings (stated $1.1M was only 20% of running rate)
- plus extra 10% for growth (conservative IMO given infrastructure outlook and success to date)
- $20M net borrowing/cash
- $70M capitalisation at 20c per share

That gives FY19 EBITDA of $17.2M on a capital base (market cap + borrowings) of $90M ... for an enterprise unencumbered EBITDA ratio of only 5.2. Great value IMO.