half year results presentation is out..., page-9

Enlightening to hear the views of everyone here, thanks to all.

IMO the result was reasonable in light of the well publicized shock FBT changes announced last year. I applaud the company for maintaining their workforce, showing loyalty to staff who have helped them grow so strongly in recent times.

I have owned MMS for many years and have done very well from the investment, and today decided to sell out. I do believe the company is well run by Michael Kay and has a bright future, expanding into the UK. But for me, the risks are rising just a little too high for my tolerance levels!

In particular it concerns me how much debt has risen in recent years. MMS traditionally financed its own growth from retained earnings and had a healthy cash position. Now the company continually borrows more to invest in its fleet of vehicles, and I see they have a banking facility of over $300m. Interest cover has fallen markedly, in part of course due to disruption of the business in this last half.

The company also notes that in both of their business segments they are facing intensifying competition.

It's been a good ride, best of luck to all holders into the future.