PBT margin for the half year was the lowest its been since 2022 at 4.22%. Its a reminder that CAA is a very low margin business that doesn't have much room for any margin compression. The lower margins is directly caused by higher labour costs with employee benefits to sales of 17.57%.
This is a common theme I have seen this reporting season with lots of results showing higher wage costs.
Cashflow is again a highlight.
In the last two full years the business has produced $95.46m in adjusted OCF (allowing for lease liabilities). This has been utilised by investing $17.65m in maintenance capex (including streamlining processes in the plants), repaying $24.08m in loans, paying $18.58m in dividends, buying back $9.36m in shares and purchasing businesses (trade centres) for $6.8m.
CAA Price at posting:
$10.00 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)