Its also worth noting that with the class action resolved, the market can now focus on the strength of the groups balance sheet. With an EBITDA of $8m+, net cash of $6m (despite negative outflow of $3-4m from accelerated expenses for tax purposes), and continuing strong cashflow generation, ASH should have circa $20m of available/surplus capital and still keep debt to EBiTDa below 2x. This is more than 50% of total market cap. (Ive assumed here that the class action settlement is less than $3m due to counter claims and insurance). These numbers give ASH a lot of flexibility for M&A or a privatisation by the MD. I also think a merger with PPE is worth consodering if the price is right, although it would probably depend on how big ASH believes the education growth potential will be. GLTAH
ASH Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
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