I was also bemused about the outlook statement, particularly considering the solid trading experienced in 1H2016. So I asked the company exactly what they were referring to when they stated that EPS in FY2016 is expected to remain at the FY2015 level. They confirmed what I suspected, they are referring to Operating Profit After Tax (in calculating EPS).
If you review the FY2015 result you will note a $1.9m additional amortisation charge (before tax), being an impairment loss on the carrying value of intellectual property. If this is removed from the Statutory NPAT, the Operating NPAT is about $7.2m for FY2015. If this is the level of earnings is again achieved in FY2016, we should see 2H2016 NPAT of $2.5m.
Let's hope so!
BYI Price at posting:
$1.01 Sentiment: None Disclosure: Held
