Thanks for sharing @zeno9. The live presentation and Q&A session always gives some extra insights. A few more I picked up on (I did not take precise notes, so the following are my words, but the sentiment is correct):
The current ratio (which was a bit of a worry previously) is now in balance, representing a major strengthening of the Balance Sheet;
Capital expenditure will be about $10M less next FY, meaning more cash left over to further strengthen the Balance Sheet.
The extra $10M capital growth expenditure this FY is connected with items expected to be delivered in the last Qtr of this FY. They will then start earning at a very high rate (ROI of > 40%, more likely 50% or higher).
Although NSW might look a bit weak recently based on the data, it is heading for a doubling. Earlier figures were inflated by the highly profitable sale of equipment no longer needed. If that abnormal boost was removed, the high rate of growth would be more apparent.
December and January were way ahead of budget expectations, even with the Omicron wave. If contracted jobs get delayed, ACF just keeps earning on the hired equipment on those jobs.
All of this gives me confidence that strong growth will continue into FY23.
ACF Price at posting:
53.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)