In my view, management in RRA have done a wonderful job for once again posting a profit that exceeded market expectations.
RRA is currently trading on a P/E of 7x FY'09 and a dividend yield of 7.1% Fully Franked. Gearing is almost negligible at around 8% Debt/Equity.
Strong annuity stream model and organic growth. Cashflow was a surprise and it seems that Big Brown Box and Cash First will be able to break even in FY'10.
This stock has constantly outperformed market expectations since listing and has continued to do so in tough times. This is probably one stock that can actually perform well in a tough environment.
There was not one negative element within their result. Well done John Hughes & team. Keep up the splendid work.
If you are thinking of investing within the retail space, have a look at this company.
Happy investing.
RRA
rr australia limited
