The only positive of this results are that they have taken their medicine at Bremner ($6m straight off the bottom line) and they have trimmed the sails for tougher trading conditions going forward.
Perhaps the fall of revenue and volume of 10% isn't too bad when compared to the projected 25% drop off in housing starts as stated in the preso. I'm somewhat more enthusiastic about 2HCY19 and believe they can turn in a $3m NPBT if there are no more write-offs and they continue to save on costs. The finance cost of $2.6m for the half year sure is baffling. It must be tied up with the Trade Finance facilities (letters of credit) of some $24m.
If we are in for tougher times then perhaps CAA can gain market share as competitors struggle - let's go after the 74% of the market we don't presently own. I will hold and wait for 2hcy19 results.
CAA Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
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