Ann: Trading Update, page-2

Allow me to paraphrase this announcement....

"As foreshadowed, things become quite dire in the company's key markets, but we took swift and decisive action to ensure the company's long term viability. There are now some signs that our key markets are recovering. Oh and we anticipate a profit before tax of between $300k and $500k for the year."

Analysis: Taking the mid-point of the Board's forecast profit range ($400k) and applying the median tax rate of the last few years (23%) gives a profit after tax of around $310k. With Saferoads' market capitalisation currently at $5.5m (at 15c), that would put the company on a PE ratio of around 18 and an earnings yield of 5.6%.

This would be an outstanding result given the circumstances. It bears out the quality of the company's management as well as the company's excellent foundations for growth. Saferoads is considerably undervalued at current prices imho.