Ann: 1H FY22 Results Presentation, page-2

I found this result disappointing due to the drop in the EBITDA margin from 8.6% to 6.9%. This is explained (page 6 of the presentation) as due to lower margin procurement related sales. That was not made clear in the quarterly release which highlighted record sales, without flagging that margins had dropped.

The result is diluted earnings per share of only 0.65 cps. Even assuming continued growth in the second half (say earning an EBITDA margin of 8.6% on similar revenue to the first half) that suggests full year earnings of perhaps 1.5cps to 2cps. The shares then seem fully priced to me. On the plus side they have enough debt funding to finance further growth without raising equity.