Debt reduced c$167m down to c$130m - largely on sale of Loxton Winery.
Dividend of 2.6c announced - 5.8% yield at 44.5c.
Interest costs down year on year, I am looking for this to fall a bit further (by 1m-2m over the next year) if they can keep debt at this level.
RBA has cut interest rates over the past year - base rate down from 4.75% to 3.50% over the year.
Assuming the rest of the business stays even, reduced interest cost provides a kicker of between +14-30% NPAT growth. Any weakening in the AUD will also be a bonus.
Possible downsides - Gross margin down 28.4% to 27.3% - lower margin sales mix. - Interest cost still high in H2 - I would have expected lower H2 interest costs due to reduction in H1. Put this down to peaks in the cash advance facility during the period not captured at end of period.
AVG Price at posting:
43.7¢ Sentiment: Hold Disclosure: Held
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