amichi, page-3

Hi Kawartha,

the NPAT is unlikely to be 6million this year.
It will probably be more like: $4.4million.

The 3.2mill half year profit, included a one off 2.1 million tax credit (previous tax losses which were finally realised as an asset on the balance sheet).

What happened is this:

$1.7m Profit before tax
- normally you'd pay 600K tax on this, but they used up part of the 2.1mill tax credit to pay for it.
$1.5m income tax benefit - this is a one off using up the rest of the 2.1mill.
-----
$3.2m total

Next half you can expect:

$1.7m Profit before tax
= $1.2 Profit after tax

Total for full year 08:
3.2 + 1.2 = 4.4mill.

In future years (assuming no growth, and Depreciation/Amortisation remaining around 2m mark):

$1.2m NPAT per half year
= $2.4m NPAT full year.

This puts the company on a forward PE of about 12.

If you believe in the growth prospects, you'd want to know what kind of profit Amici would generate.


Joel