Result looks OK to me. It was a bit weaker than I had forecast, but really just incremental differences at each business/cost unit rather than anything fundamental. The commentary regarding the outlook for both businesses was generally positive (I also note that the EBITDA from the training business may be more weighted to the Dec and March quarters than I had forecast due to the seasonal nature of training demand).
Importantly also, ASH pointed out that they are continuing to work with CCL on the proposed acquisition. The AGM would have been the perfect opportunity to announce that it was dead in the water, but the fact that they are continuing to travel interstate to discuss the transaction, and are indicating that it should be resolved in November, sounds like there is still a reasonable prospect that a deal will be done. Furthermore, the issues raised should mean that they pay less for the transaction if it proceeds, and hopefully the delay is simply due to cyclical weakness in the business (in line with Concept Engineering's performance).
Cashflows were positive, but this just looks like an unwind of a tax driven working capital investment in prepaid super expenses from a prior period.
Overall, I'll stick with a buy, with the CCL acquisition a potential near term catalyst (or at worst a company with a spare $6-7m cash on hand).
ASH Price at posting:
31.5¢ Sentiment: Buy Disclosure: Held
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