Solid 1H2014 result from MTU, but it will be interesting to see what path the directors take the company down now.
They have ratcheted-up the debt, and I see that net debt rose by $12.5m to about $290m at the end of 1H2014. Surely this means any significant acquisition becomes somewhat riskier carrying this debt, unless they take the route of issuing equity.
The focus seems to be on integrating Dodo and Primus and finding organic growth.
Perhaps expanding Dodo's other utilities businesses; * Gas * Electricity * Insurance will become the focus??
A proven management team, so for the moment I'm prepared to maintain the trust.
Any thoughts?
MTU Price at posting:
$5.96 Sentiment: None Disclosure: Held
