Looking at the recent announcement indicates a guidance of EBITDA 2008 of $67-75 million on $1 billion turnover.Reviewing the last financial year of actual figures 2007 was $1 billion turnover EDITDA $67.2 million which then produced a loss of $10 before tax.The loss came about after all the bank interest was then taken to account.What I can read into this is that CDR still has to reduce debt via some sort of sale as even with the $1 billion turnover they will still book a loss before tax.This is due to the companies high gearing of debt.The market today was happy with the announcment that they have not lost market share revenue.The question I still have is the debts of the company which CDR will have to address as even with $1 billion revenue they still produce a loss before tax.The outcome I see is a takeover or fresh equity from a cornerstone investor.
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