Ann: Half Yearly Report and Accounts, page-2

Well, there's the sticker shock (although it might be muted by the commentary about strong organic growth in the core business):




In my mind's eye, I was envisaging a nice round stretch target of $1.0bn of EBIT (ex-Covid free kicks, which I expect will have all but disappeared in FY2014).   

Everyone can do the math, using their own GP Margin assumptions, on the contribution of that ~$380m of Covid Revenue, and strip that out from the $575m EBIT number for the half.

A 50% GP Margin on those Covid Revenues (that Covid stuff is juicy business) implies EBIT of around $400m for the core business, so they would need to do a bit of hard peddling to get to my $1.0bn target (which would represent very good fundamental value in my mind given it is a stretch target, remember).

Based on this result, and the commentary around the momentum in the business, and recognising that Dec halves are seasonally weaker periods, it looks to me like they just might get there.

The bottom is in, I believe.

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