Not all turnarounds do; this one is certainly doing so in...

Not all turnarounds do; this one is certainly doing so in spades.

For context, here's what the second-half PBT number looks like compared to history:



The boom times are back, evidently.

Of course, as always, the devil will be in the accounting detail and what I think will be most interested in is the working capital demands of the business at the moment, and the outworking this will have had on cash flows during the past half  - working capital rose from $14.8m @ 30 June 2020, to $16.2m at 31 December 2020...I suspect a further $2m-odd WC investment will have been made in the past 6 months.

But despite this, the company will still be sitting on meaningful surplus capital.

So the question that then remains is, what does management do with that embarrassment of riches?

There are no bad guys (commercial lenders) who have any claims on the business, so I'm looking forward to the excess being given back to the good guys (shareholders).

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