I am not a holder and have not done deep research on the Environmental Group. It was on my to-do list, and so when this trading result popped up, I just wanted to take a bit of a deeper look.
Unfortunately, I think this is putting lipstick on the pig before market day. The top-line seems good with revenue and EBITDA growth, but with the share dilution and performance rights, EPS could be anemic. The share count has grown ~23% (so around 7% growth is left per shareholder). Moreover, the performance rights are going to smack shareholders this year. By my calculations, there will be around 8.8m performance rights issued on that result worth around $1.5m to the bottom line. This is double the level of performance rights for last year's performance, which was already high.
DYOR.
EGL Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
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