I agree that it looks cheap relative to your FY20 and FY21 FCF forecasts.
Looking at FY19, though (and taking the mid points of guidance, like you’ve done): Net Debt is expected to increase by ~10m$, despite total Capex being only ~15m$; that implies ~5m$ in OCF, which looks a bit thin vis-a-vis an EBITDA guidance of 38.5m$, don’t you think?
If, as I understand, the cost of the new press is included in the Capex guidance, can the whole difference be attributed to “resulting rationalisation costs in second half of FY19”? Are there any other significant items that didn’t get mentioned in today’s announcement?
PMP Price at posting:
19.5¢ Sentiment: None Disclosure: Not Held
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