Ann: FY19 Performance Summary, page-6

First 6 Last

Share
Profile

Follow
Just_a_guy

5,426 Posts.

298

02/09/19

11:54

Post #: 40275221
Share

Originally posted by SimonGr: ↑

No worries.

Re CAPEX (and depreciation of spend) there’s quite a few moving parts.
- The R&D work for HALO etc appears to be largely finished.
- Depreciation/amortisation schedules were steepened last year (good conservative accounting as per @1_Day_Man ‘s observation)
- New “annuity” contracts need CAPEX ... so if it increases quickly, it’d be a good thing (the result of winning a lot of annuity work). Eg. The large CAPEX spend in FY18 due to winning large contract in NSW.
- With the steeper depreciation rates, rollover annuity contracts should be more profitable (as CAPEX fully depreciated and asset retirement charges should be pushed out). That’ll depend on the rollover of course as the rollover may involve an upgrade of equipment.

So ... that’s a bunch of excuses for me to avoid answering your question (because it’s hard). But with the biggest chunks coming from new annuity type contracts, I’m thinking about it as more of a COGS type spending. And cash/debt position is pretty healthy so they have head room for this expansion IMO.

Does that help at all? Or am I muddying the waters more?

Expand

no, that is very helpful and along the lines of my thinking in terms of capex/cogs. It just distorts your ebitda valuation multiples. If you had to guess, how much of the capex (7mil cash spend last year) could be moved to cogs? This would then give us a fairer ev/ebitda multiple.

RDF Price at posting: 35.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

'Not possible' to port renewable gas: ACCC takes AGN to court

BOE

Boss extends June win streak with boosted Alta Mesa extraction rates

ASX Market Open: IPO hype, Wall Street ATHs push Aussies into green hope | June 27

ASX Market Close: Index creeps lower as half-year mark approaches | June 26

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

OCC

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

PAR

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

SRL

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

First 6 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

Ann: FY19 Performance Summary, page-6

Top Stories

Australia’s gas crisis is here – and dying coal plants aren’t helping

'Not possible' to port renewable gas: ACCC takes AGN to court

Boss extends June win streak with boosted Alta Mesa extraction rates

ASX Market Open: IPO hype, Wall Street ATHs push Aussies into green hope | June 27

ASX Market Close: Index creeps lower as half-year mark approaches | June 26

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

Orthocell sees 4% jump as Remplir used in first US surgery. But is that low?

Paradigm Biopharmaceuticals makes key acquisition moving into FY26

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

Sunrise pops on top scandium hits NSW explorer will now use for 'multi-decade' plan

Featured News