When covenant ratios are at like 98%, there is a high risk of a raising (as has been proven by the company). Instos would be considering this risk.
Bringing the ratios down to say 92% is a positive.
+$17m for the HY can change the ratios by 1.5%. 92% to 90.5% for example.
Or as an example, if the company decided to pay dividends (unlikely right now), $17m would be like a 25% dividend for the half year.
I guess the HY did not mention cash profit (NPAT would be more influenced by accounting rules for provisions). Wait 1 month for the annual report for that. But I'm thinking change in net assets will be somewhat reflective of cash profit.
And the change in Net Assets this half was a step up from prior halves. If that is reflective of cash profit, then it's on a strong positive trajectory.
MME Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
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