It looks excellent. Not just for the half year, but...

It looks excellent. Not just for the half year, but structurally, it looks really promising now.

I was fully expecting at least 400K after management waited for the half to unfold a bit before proceeding with the dividend. I hoped for 500K. To get 579K underlying is very pleasing, and hints that we might have arrived at a consistent $1-2 million annual profit going forwards. If we can sustain $1.5 million annual profit, the dividend will double. So too will the share price.

Tessa is a little embarrassed, and is not wagging her tail quite as vigorously as she might have done at such an encouraging result, because she is mindful that she predicted that the $1-2 million milestone would be achieved on the back of international expansion. She did not foresee the tremendous strides being taken in rental, and the potential for significant further rental growth by way of what seems to be a perfectly timed expansion into NSW, just when infrastructure programs will be kicking in. Therefore, it seems that Tessa was quite wrong about exactly how the company would turn things around. Tessa does not care a great deal about that, so long as it has indeed turned!

Indeed, she takes further encouragement from the fact the once rental growth subsides in a few years time, the company should be able to turn to international for a further leg up at that time. International expansion has simply been delayed.

The future of the company for the next five years is looking increasingly assured. It seems more likely than not that profits will be steadily growing beyond $1 million, even perhaps towards $3 million in that time frame.

Perhaps Tessa is in a position to give her tail a good wag after all.