Hilly, Do agree with your comments. In reading the bits in the...

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23/08/18

21:40

Post #: 35140661
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Hilly,

Do agree with your comments.

In reading the bits in the presentation and 4e, I think you may be right. If I get this amortisation bit correctly, think the increase to 48% will cost 1 cps or more? Meaning profits would be even higher without change? Long term plan to get on track? Eps would be 20.2 - 20.5 without amortisation increase.

Canberra events put a cloud on the market today. Any analyst updates?

Originally posted by hilly_sandman ↑

Rivas seems to under promise and over deliver... I liked the following statements - all three sit in the under promise over deliver theme...

"The outlook for PDL purchasing remains attractive and we expect to meet or beat our performance in FY18."

"A number of expanded client contracts, including our newly developed IDCP and Business Services offerings, made maiden contributions in 2H18, but establishment costs incurred in 1H18 offset most of the benefits in FY18. We expect a more meaningful contribution in FY19."

"Operating expense fell 7% lifting Operating cashflow by 38% to $85.9m."

Reading between the lines - staff costs fell due to a number of initiatives including IDCP, the $/hr collection from call staff has again increased by 42%, PDL purchasing will be in line or more than last year, and similar levels of PEP ----- this has we are going to exceed guidance written all over it IMO...

Also keep in mind revenue still feeling the effects of low PDL purchasing in FY16 and FY17... Increase in PDL revenue this year was 15% from $65k to $75k, from the segment earnings...

Dividend has been held back because all PDL revenue is being driven into purchasing new PDL's (this is how the team over achieved on PDL acquisition)... So this will lead to one of two possibilities;
1 - PDL are priced to high and CLH retain some cash or increase dividend
2 - Continue to plough PDL revenue into new purchases and exceed guidence

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CLH Price at posting: $1.49 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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