Buy expecatation, sell fact. Plus there's nothing new to get excited about, plus the results look worse than expected.
Bascially the expectation is that the EBITDA will flow straight through to the NPAT level, but two things are affecting this.
a) Depreciation last year was $772k. I had it in my head, for some stupid reason, that they'd done away will all their depreciation except teh $600k p.a. that they'd get from Delvex. So for the half year $380k is gone in depn'n.
b) Under A-IFRS they have to take a $294k hit for amortisation for the full year... so there's $150k that goes there.
So: EBITDA $1,995 Dep'n - from annual rep't ($380) - but only for 1H Amort'n - from last ann'l ($150) - but only for 1H EBIT $1,465 *** something doesn't gel here*********
EBIT $1,786 Interest ($200) - assumed NPAT $1,586 Write off ($400) Net $1,186
I'm now waiting for Steve to call to sort this out.
In the meantime the Net looks very small, hence the disappointment. By the EBITDA is cracking along nicely.
I went to a presentation by Baxter this morning and I was left with the impression that TOX's business is a much nicer one to be in - less labour and land intensive, more process driven. But it certainly made me think....hmmmmmm.....
TOX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
