Ann: 2024 Half Year Results Presentation, page-8

I think in summary this report gives a glimmer of hope for those that remember the old Ramsey. The topline growth is significant enough that if the cost base can be reduced even a few % the bottom line would look significantly better. That's probably the sole reason for the slight exuberance today in the SP

Employee Benefit and contractor costs used to be around 53.5% of Revenue and now are 58% in this current half down from 59.5% in the pcp. Whether these can be lowered more is a key decision that needs to be made for the investment case. With 8 billion in Revenue another 2 or 3% reduction starts making the bottom line a bit more respectable.

Finance cost is another issue running at close to 4% of Revenue with a average cost of debt now at 4.88%. This is obviously a stock that would also benefit from a fall in interest rates. Failing that I would expect the finance cost to creep higher still as maturities roll over.

I don't like the European business as all. Its been a fantastic waste of shareholder value. I am not sure what will ever change to make it look like a wise strategy to have pursued. Compare the maintenance capex on the European business with what its actually generating in operating cash flow.

Remember KKR offered $88 a share not too long ago. To do this they probably thought they saw $115+ in value.

I imagine they would be receiving all kinds of approaches on how they can unlock shareholder value.

I can't say i am hugely excited by this business but I like some Healthcare holding for portfolio balance and I am not seeing other ASX Healthcare stocks that excite me hugely either at current valuations.