Assuming no further profit downgrades before it announces its 1H earnings on thursday, (lol) then first half earnings should be 6m. 2H earnings are expected to be further hit by a reduction in new ledger acquisitions and other costs of 5m - largely for a strategic review. On this basis profit could be as low as 1m plus whatever can be achieved in the 2H (say 2m).
With 44m shares listed, a NPAT of 1-3m gives an EPS of 2.27cps to 6.8cps.
Given that CCP has flagged subdued growth ahead, at least until it sorts out where it is going (such a broad ranging strategic review and the cutting of its forward flow agreement 6 months after claiming it would drive 2/3 of EBIT growth doesn't bode well for profit growth), it seems reasonable to price CCP on a reduced PE.
On a PE of 12, CCP would valued at up to 80c.
CCP Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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