Ann: $30m Equity Raising to Advance Sheffield Growth Strategy, page-25

Why would I use EBITDA? It excludes the major costs of depreciation/amortisation and tax, end profit is generally significantly below 50% of EBITDA figures. It is not a transparent reflection of what the business actually earns for its shareholders. If I am to use EBITDA to figure out a business' ultimate worth, I may as well start calculating dividend payments based on revenue. I have not been able to find any mention of future D&A expenses, if they have not been provided that may be suspect!

For those who are somewhat novices to accounting,

EBITDA - Earnings BEFORE Interest, Tax, Depreciation and Amortisation
NPAT - Net Profit After Tax

Those who use EBITDA to calculate their returns will ultimately be disappointed to find that it is less than expected.