Trying to make sense of these results. Most of the profit comes from a tax credit which I assume is not sustainable so I'll subtract that and apply 30% tax. But I'm going to add back the $2.1m impairment charge first.
Revenue is down and cash flow is up. These are all related - less work means less capital expenditure and more land sales so high positive cash is not a great sign for the future.
Possibly the $3M loss on a road contract is a one-off - not sure whether this is the kind of mistake that happens all the time. If they made an extra $3M over expected on a different contract, would they mention that as an extraordinary item? Probably not. If the market is getting tight, this could reflect the reduced margins expected across the board in future periods so probably expect this kind of thing to recur.
BYL Price at posting:
21.0¢ Sentiment: None Disclosure: Not Held
