Ann: TGA 2013 Results Presentation , page-4

I am pleased with the results.

A superficial read of the financials shows profitability has gone nowhere. Upon closer inspection however, one can see that cashflows and borrowing increases have gone towards increasing future cashflows. Judging by the increases in dividends, Directors are confident of increases in future cashflows.

Note the increases in acquisitions of rental assets and Thorn Equipment finance settlements. This leads to a corresponding increase in current cost of sales for which the cashflows will be realised in the future. As such, the cost of sales is only a temporary hit to this year's profitability. As Pioupiou has stated many times before, current cashflows are used to "buy" even greater future cashflows which masks the underlying strength of the business model.

TGA will most definately continue to hold a majority spot in my portfolio for at least the next year.