Hi Edved In my view the NTA gap is simply reflective of the...

Hi Edved

In my view the NTA gap is simply reflective of the historic inability to be able to get a good return of equity /investment. The market had priced them on this metric first and foremost . The new team have worked hard across the business to increase the return they get on each and every asset not only be increasing rates and contract terms to pass on costs , and offloading under-utilised assets but also working to gain efficiencies in their biggest cost centre labour . It was put to me at the AGM , that even a 15 min gain in labour efficiency per staff would have a huge impact on the financials.

Thereore I use NTA as a safety net , but it’s not the anchor to valuation, indeed if they continue to improve operational metrics there is no reason it won’t trade and well over its NTA . Like MMA which traded at 30c in the dollar of NTA and now is being taken over at multiples of NTA.

I really do think over the medium term BOL could trade at 35c plus . It will take a few more quarters or increase profitability but I think we will see higher and higher SP as performance clearly becomes entrenched