Ann: Guidance for FY15 Trading Result, page-2

What a fantastic update from the company! It shows that the Board and the new CEO is fulfilling its commitment from last year AGM and they are coming forward towards its shareholders. It also confirms my predictions that it would seem odd for FRM to break even or record loss in H2 after all the improvements in the financial performance over last 2 years. It just did not stack up. Farm Pride has rebalanced its facilities operations and cage-barn-free range production is now meeting market demand without high stock write-offs.

I reckon it leads to at least $12mil EBITDA and probably $6-7 mil debt level, a great reduction from $14 mil over 1 year. Also operating cash flow should be around $8 mil with net profit of $4mil. I believe simultaneously they would also reduce payables to be in pair with receivables. All in my opinion and hopefully there is no impairment surprise.

20 mil capitalisation is now having a lot of margin of safety factored into it. Baring unforeseen circumstances, the company has solid financial foundations to maintain this performance over the coming years. IMO the company is worth $0.500 per share and I hope that market will finally notice it. Looking forward to the full year report.