Apart from the profit announcement effectively being an upgrade the big thing that impresses me is that they indicate a signficant reduction in gearing...
In 1H09 presentation gearing was at a scary 79% with blowout of inventory and debtors. Now guidance is for Fy09 gearing of 70%. Thus cash flow positive and repaying debt without any capital raising.
Very encouraging signs. Survival now looks probable and will re-rate strongly over coming years as EPS increases and P/E multiple increases, compounding the upside in share price.
Nice work to all that got in at 30c with Prudental selling and took the risk ! (And those long term holders with the guts to hang in there...)
MCP Price at posting:
$1.09 Sentiment: Hold Disclosure: Held
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