Seemed pedestrian result to me despite the optimistic language.
Revenue up, but margin down and so EBITDA and NPAT unchanged.
The fall in the margin is attributed to the shift from Concept revenue to AWF revenue.
That seems likely to continue with growth mainly in AWF, so we need higher revenue to maintain profits.
It is not all bad news as cash generation meant dividend was paid with no cash rundown. So we should be able to pay a half year dividend if directors choose to do so.
Profit growth this year probably depends on the takeover going ahead, given the margin decline and as they flag head office economies are over.
Always a worry if growth depends on takeovers and a more detailed discussion of margin contraction would have been good.Can they raise margins on the existing business?
I view it as a hold until the takeover is finalised and we find out the revised price and what the problem was.
ASH Price at posting:
33.0¢ Sentiment: Hold Disclosure: Held
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