$1 on the card-no, page-65

I was reading the latest result, the Americas business is doing very poorly with the loss of some big contracts.
A 50m loss for the half associated with the sale of loss making ATC. The "underlying" profit is reported at 5m.
I think this is understating things as the cost of the defence to Crescent is not included, and ATC made a 4m loss in the half.
Taking these factors out I consider the earnings power demonstrated by the result to be at least 13m per half or 26m per annum. That leaves the company with a gearing ratio of 18%, propriertorship 55% and plenty of free cash flow/interest cover demonstrated.
700m of assets selling today for 280m means a PE of around 10m and PB of 0.4.
King Dick (Richard Wankmueller) has promised 20m of expense reduction so I will watch with interest for the next result to see if these reductions are greater than ongoing declines in fee revenue.
This would require another decline in business conditions as seen between the 1H2015 to 1H2016 so I think is pessimistic. Looks to me like another year of poor results but with a long term view this company is an excellent bargain.
I am going to buy some more.