Ann: Half Year Accounts, page-11

Fantastic result.
Unfortunately I couldn't make the earnings call, however here's my take on the results announcement (I'll start negative and work my way up):

- I can't understand why fixed charge cover was 1.33x at the half and has declined meaningfully year on year. I don't know how this covenant is defined in their bank docs, but I can't understand what has weakened versus last year given rent and interest are basically in line. I am however comforted by the fact they point to 1.38x FCC expected for the FY based on their conservative guidance;
- While I am cautious on retailer earnings in any given period (given their ability to use provisions etc to boost earnings), this looks like a genuinely solid result (and there is little incentive for them to post a result in excess of guidance if they are just massaging the numbers). This result is even better once you consider that Q1 was weak;
- I agree with other posters that the FY guidance looks conservative. I suspect the market will start to factor in $19m-$20m for the FY in the coming days/weeks, given the start to H2 and the improved cost position;
- The cash balance is also remarkable and while some may be timing issues and therefore temporary, there is still a healthy underlying balance for capital returns, buy out of bad leases, additional investment etc;
- I'll stick with my view that we will be back to double figures for TRS in the next 12-18 months. Never underestimate the impact of Mr Market changing his view from basket case to growth stock.
- Its also worth noting that a large number of micro cap funds that have been raising money lately. They will be looking for a home and TRS must be on their radar after this result.

Overall, I think the 10% jump today is going to be seen as conservative in the coming days. After all, those that are falling over themselves trying to buy today are not doing so because they thing the price is going to stay at $6.50. Didak - maybe instead of buying grange we should buy some more TRS ;-)