Ann: Half Yearly Report and Accounts , page-5

Good summary Pickem.

I would give the overall result a 6.5 out of 10 if i had to score it.

I think you have flagged the key issue that impacted the result being the lower revenue through the Contracting services pod due to less work via Foxtel.

If you allow for Allstaffs full year contribution to Building services(I estimate around $57m Revenue) there was some low digit growth in this segment, perhaps a little over 3%.

As mentioned above this was overshadowed by the 9% fall in Contracting Services revenue.

The pleasing part of the result was some excellant control on the main P&L driver. Consumables & Materials were at the bottom end of the last 7 DH's.

Consumables & Materials as % Revenue

DH04 78.7%
DH05 78.8%
DH06 74.5%
DH07 78.0%
DH08 77.0%
DH09 80.7%
DH10 75.0%

However the other key P&L Driver remains at a historical high(no doubt contributed again by the lower Foxtel contribution), as well as some overhang from the Allstaff integration that hasn't yet born out maximum efficiency

Employee Expense as % Revenue

DH04 11.5%
DH05 11.8%
DH06 10.9%
DH07 9.2%
DH08 10.1%
DH09 9.7%
DH10 13.0%

Overall EBITDA margin was 4.6% (4.5% DH09, 6.8% DH08)

Cashflow Conversion was excellant at 104%. WC to sales at 4% was an alltime DH low.

Generally i feel management is working the business well, with the proviso that there is room for some more cost synergies etc.