Hi ashleywd, I think it may be wise to re-base your P/E based on...

Hi ashleywd, I think it may be wise to re-base your P/E based on the information released to market today with provision accounted for. I would suggest that provisions are not taken up for no reason - and the tax-man will certainly make sure of this too. Normalised EPS of 0.92 cents for period to 31 Dec 2015. Forecast EBITDA of 25.8m. I assume that we will see an EPS for FY16 of closer to ~9.5 cents. With this figure in mind, rather than applying the current ttm EPS, we see a P/E of 7.57. Applying the x12 ratio mentioned above, the "fair value" SP is closer to $1.14. This somewhat agrees with the valuation provided by accaeric. Perhaps at this stage there is an element of risk priced in with net debt ratio now at 18.3% - not massive by any means, but need the cash-flow to balance this. My thoughts only, welcome a good discussion.