When you analyse the determinants of the result, you could easily make the case for second-half EBIT, instead of $6.04m (as reported), being 10% higher on an underlying operating performance basis [*].
Not sure the market - given its proclivity for short-term myopia - will see it that way, though.
Also, we don't know to what extent the JH2019 result, was impacted by orders that would normally have fallen in Jan 2019, but were shipped late in DH2018 (whose PBT result, recall, was a whopping 145% higher than DH2017).
[*] Adjusting for:
- $0.4m staff LTI program implementation which, presumably, will is not recurring;
- Assuming (conservatively, I think) that a full two-thirds of the $1.5m marketing and advertising expenses are permanently embedded, i.e. $0.5m of it is one-off in nature, and
- Offsetting these items, R&D expense, which was $0.27m lower in JH19 vs JH18.
SDI Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
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