Ann: Half Year Accounts, page-30

I surmised the cashflow loss was superficial at best and came down to nothing more than an inventory timing issue which is quite common in retail.

if the company can maintain earnings in the second half and realise an NPAT of $5m for the year the valuation range should sit in the $0.14 to $0.21 range quite comfortably. Doing so would put it on a p/e of as little as sub6x.

sure there was a little cashflow drain, sure inventories were up, sure revenue was slightly off, but counter that with improved margins on, less debt, sustained NTA and cash reserves.

if folks are wanting consistent return go buy a long dated fixed rate deposit. if you're up for some volatility and prospective growth this should be on the list in my view.