Ann: Surveying Operational Update, page-4

Mmm - so did any of the sellers know this prior? Quite a fall in the days before the announcement.

This is a disappointing announcement. However, I just did some quick calcs ...

- Revenue is up strongly on an FY18 pro-rata basis, but this is mostly due to Elton being bought start Q4 FY18.
- After accounting for Elton timing, I calc organic revenue growth of ~6-7%
- But ... EBITDA margin down from ~13% in FY18 to ~7% FY19 YTD (and even further below their FY19 target of "15 - 17%"
- At this rate, EBITDA tracking ~$2Mpa below pro-rata FY18, but with lower deprec/amortisation and much lower restructure and acquisition costs ... I'd assume that VRS is now generating a positive NPAT.

With such a strong infrastructure market, I would have thought they'd have room to increase or at least maintain margins. Will give them the rest of the year to see if they can do what they say they will re: margins. Would be nice to see some directors buying at these depressed prices.