Quick review of half yearly report shows:Total liabilities...

Quick review of half yearly report shows:

Total liabilities (short and long) of $23.5m.

Total current assets (short only) of $17.6m.

Ignore the non-current assets - mostly 'intangibles'.

Net liabilities (all libabilities - current assets) of about $4m.

Announcement suggests sale price for testing business of $15m. Unclear whether this will be a profit or loss (didn't look for a purchase price).

Doubling the half yearly figures for Testing, we can see about $6.4m in full year revenue, and $1.6m NPBT (estimate NPAT of $1.1m).

Doubling the half year financing costs give $0.96m for the year.

The estimated NPAT for the year in the Ann (including the testing business) is $4.3m.

After removing the testing business, get the following implications for FY12.
1) Cash positive position if testing business sells for $15m). Will be in position to pay dividdends.
2) NPAT of $3.2m for the continuing business if it stays in a steady state in FY12 ($4.3 NPAT - 1.1 for testing). Add $0.6m NPAT if the results of sale are used to pay off debt.

Sale or no sale, company looks in decent position (PE of about 4). Share price unlikely to rebound till dividends recommence.