Results are obviously in line with recent guidance.Highlights...

Results are obviously in line with recent guidance.

Highlights include the solid revenue growth, operating cash growth and strong balance sheet position underpinned by a cash balance of $23.7M, up from $8.9M, Cash build was boosted by the sale of the PQGY rental fleet. Free cah flow has been strong over the last number of periods and is trending up (see chart)



The cash position easily supports the increased dividend and in the absence of major investments should be able to be maintained or increased in future periods. It is good to see some commentary on the recognition of tax losses this year. As expected, margins have moderated, perhaps to more sustainable levels , so revenue growth remains the important profit driver.

Perhaps in this business cycle now is not really the best time to make acquisitions, organic growth seems to be the prefered option. However, I can't help being a little bit keen to see some sort of an acquisition, but management seems to be able to resist "the institutional imperative". That's actually sort of comforting. It's also i the back of my mind that should the share price drift for any period of time Elph might try and scoop up the 35% or so it missed out on last time.