There are a number of aspects which concerned me in this report:...

There are a number of aspects which concerned me in this report:

1. Underlying NPBT for the first 4 months was $5.4m, for the full half it was $5.2m, meaning they were trading at a loss for the last 2 months of the year.

2. Net Debt was $77.1m
Payments are due this half and until 15 Aug of $10m USD, approx $13.8m AUD. This will bring net debt to around $90m.
The loan covenants includes Net Debt to EBITDA of no more than 4x through to December 2016.
Underlying EBITDA was $10.9m for the half. EBITDA of $22m for the full year would place them at the limit of the loan covenant.
Given the uncertainties in the industry, this appears to be a very risky position to be in.

3. The commentary does not recognise any need to reduce debt, the possible unsecured bond issue and "continuing growth objectives" leads me to think they will be increasing debt in the future.

4. The issue of options is a disgrace!

I have sold my remaining parcel, after holding for over 3 years. I have made some good profits along the way, but it is now time to move on.