No real surprises there. I am happy with the 3c dividend. I am also happy with the likely far better first half 2014/15, which I suspect will lead to a better interim dividend...perhaps another 3c, which is around $9.5m out of cashflow.
I suspect revenues will be > $700m in 2014/15, and ebitda (which they are saying will mirror cashflow) well above $40m. Just my take on things, given better first half very likely, increasing annuity income and backlog of work. $32m ebitda for 2013/14, so $40m should be easy. At $50m this is very cheap, but we will have to wait a few months to see how things are travelling on that score.
With around 320m shares on issue, my simple maths suggest cashflow at over 12c a share, and I always think of value as about 10 times cashflow, functional upon % growth likelihood.
Interesting they are talking about North American acquisitions...my bet they have some on the table right now. A good acquisition could also spark interest in this one.
I am holding for the medium term. I think we are going to get far higher revenues, more reliable revenues (annuity style) and growth through strategic acquisition plus higher margins which is a clear exit 2016 goal.
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