A lot of things are moving in the right direction : . return to revenue growth (+ 15 %), . EBITDA margin continues to increase (3.1 % vs 2.9 %, with flat GM), confirming the margin recovery of FY 24, . NPAT : + 26 %, . dividend : 10 c + 26 %. Payout of 90 %.
The main element is probably the large cash flow during H1 25 : 32 m$ vs 17.6 m$ during H1 24. It explains why the net cash position increased by 20 m$ since 30/6/24 (significant for a company with an EV of 131 m$). However, this cash flow is far from EBITDA (14.8 m$). Showing that a large part of the cash flow is due to their working capital : logical given that they have a negative working capital* model which benefits from the large increase of their revenue.
Even if we correct the cash flow from the working capital impact, the company still has a large free cash flow which corresponds to a free cash flow yield of 11.3 % annualised (at 2.99 $).
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