Although the company is meeting prospectus forecasts, what concerns me as a potential investor is the large chunk of debt (although I acknowledge it was higher under private ownership which is typically the case). I think possibly there is some nervousness around the strength of the Balance Sheet and its vulnerability especially if other regulatory changes are brought about.
There was no free cashflow generated in the 1H16 result, probably due to the listing expenses, so it is fair to say investors would like to see a statutory profit and positive operating cash flow generated in 2H2016 to feel comfortable with the amount of leverage employed.
Personally I like the company's prospects, their market positioning and manufacturing / distribution / sales structure. A long term view is needed on this type of company IMO, there will be ups and downs (VSC likewise). I'm just waiting for further confirmation on execution of their plans.
VIT Price at posting:
$1.42 Sentiment: None Disclosure: Not Held
