DDR Results, page-8

Some points of interest from the Annual Report:
* At a country level, Australia grew $105.5m (+11.1%) and New Zealand grew $3m (+3%).
* At a sector level, we ....... have added the Storage business unit which contributed +$11m (~5%) to our growth
* With regard to the planned expansion we don’t anticipate any major capital expenditure for the FY17 year for the current trading operations. We do expect however to incur planning and preliminary costs for the design and Development Application for a new warehouse facility.
* It is the intention to sell the current distribution centre. We are currently in the advanced planning stage of the project. Following the Company’s intended expansion onto this property, any excess land may be subdivided and sold
* Current borrowings comprising a receivables purchase facility with Westpac finished $15.0m lower, at $75.0m versus the prior period $90.0m
* The Debt Service Cover Ratio has improved also from 5.6x to 7.2x
* Further information on likely developments in the operations of the company and the expected results of operations has not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the company.

All in all (unless I have missed something) it is rare to find a company such as this which sets out a strategy and consistently meets or exceeds it without any unexpected surprises.

I imagine we will get a 2017 forecast in a couple of weeks (like last year) in a results presentation. Also, the dividend announcement, also due in a few days, may give us an indication on where the company sees the 2017 year-end earnings. I would suggest that there will be some analysis of the NZ market and an intent to increase growth over there.

nippa, I think you can rest easy now, this is a very solid result. Trailing p/e ratio of about 14.5 in a company which is a high dividend payer and growing revenue and profit consistently. A quick 10% re-rating would not be unwarranted.