The results not as good as I was expecting - I had an estimate...

The results not as good as I was expecting - I had an estimate in mind of around $60 - 70m npat. Not terrible however, and the balance sheet continues to become less risky giving them staying power. I'm glad they did not pay a dividend, if/when (they are not there yet) they get to a point of having surplus funds at this price I would prefer they commence with a buyback, with dividends to commence when higher sustainable profits occur and the share price is higher.

We should assume the cash balance will decline by around $100m - $130m for the full year accounts as they reduce the payables balance, unless it is a stronger than expected half. Still leaves them in a net cash position, so they have a reasonable liquidity position for at least 12 months.

I underestimated (and shouldn't have) the impact of the cbd stores reduced traffic, as they are normally the biggest earners. It will probably take a full 12 - 18 months before the cbd stores are back to where they were, although they will improve on the year just gone in the meantime. The online store sales were a bit stronger than I expected, which will be in part due to lockdowns, but it is a positive that more people are using the online store. I did expect rental concessions to be better than reported, however I think we may see a little more benefit over the next few months which will be welcome if thats the case. Lease liabilities down by around $100m over 12 months. One of the big kickers in my mind will be that reduction in GLA by around 10% of their portfolio over the next few years, and it will be the least profitable (or more likely unprofitable) areas that will be reduced which will increase their average margins and potentially reduce the administrative and logistical requirements managing a smaller portfolio. The other potential upside I see is that many retailers have gone under over the last few years, a little less competition may also help somewhat.

While a little disappointed with the results, it is still a buy for me at this price, I bought a little more today.