Ann: Strategic Acquisition & 1HFY18 Results Presentation, page-4

This acquisition, if not part of their knitting, is based on the commonality of the same inputs and I think it is a logical fit. At 5.6x EBIT, they have paid plenty for it when compared to their other acquisitions of around 3x..but it does give them a good toehold into NSW infrastructure valued at $18bn over the next few years.

As always it will depend on how good they are in bedding down the acquisitions. The 1HFY18 figures reflect their EBITDA margin has dropped slightly when compared to 2HFY18 but they say they will rectify this in 2H.

Because of the very high acquisition spend, the huge D&A writeoffs, and the 1H loss of $1.67m, they will do well in breaking even in FY18...plus when the Elton business is taking in, shares outstanding will be a tad under 350m at June 2018.

I think 1.5c eps in FY19 is a possibility and on a PE of 15 that's 22.5c. I'm not sure why the huge interest. I bought a few just to leverage into the infrastructure spend, but no great conviction.