Once again worse than expected, I thought they might do around $4.5m for the first half and around %8.0 - $8.5m for the full year. Full year is now looking like NPAT of $6 - $7m.
The worst part is that there is just no end in sight to the deterioration, if the current trend continues, they won't have any earnings left to retain. Look at the trend in half year NPAT:
In fact the deterioration in earnings has accelerated, 1H10 profit will be more than 50% lower than last year, an incredible deterioration. There are obviously much more systemic problems with this business than just a poor economic environment but if you ask management they can;t even tell you why they are losing business.
REF Price at posting:
45.0¢ Sentiment: None Disclosure: Held
