The strange situation of the number of shares being the same for both years was caused by the fact that they issued something of the order of 9 new shares for every existing one and then turned around and had a 1:10 restructure. Just to show this in a simple example if you start off with 20 shares and issue nine new ones for every existing share you get 200 shares and then have a 1:10 restructure you end up with 20 shares again. That is pretty much what CAA did during that twelve month period. Many of the new shares were issued to GPG exchanging debt for equity and many more were placed with so called sophisticated investors. The original small shareholders (and I was one of them) got decimated.
You have a big investment in these. I must confess I do too. I have bought quite a lot since that restructure but I also took an enormous bashing with the shares I held prior to the capital raisings.
In regard to the debt, that debt figure of $6.5m you quoted is net debt (total debt minus cash holdings) and is very low for a company with annual revenues around $400m and total assets of $264m.
Capral's annual year finishes on December 31st so the figures you are referring too are from the interim report not the annual.
This latest half is not going to be easy for Capral with a soaring dollar and lacklustre house building. All our manufacturers, not predominantly supplying the mining industry are struggling. Hopefully the government will do something to help them get through this period. In the meantime Capral is well placed to survive with such a strong balance sheet and an entrenched position in the industry.
GPASAS
CAA Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
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