Follow up on TRS HY results

I did some more digging on the H1 results:

- H1 fixed charge cover of 1.33x was low because its a rolling 12 month covenant which includes the weak H2 FY2017 result. Accordingly, it should automatically strengthen to ~1.4x at the FY (assuming they meet guidance);
- In terms of H2 guidance, there will be about $1m of costs associated with the Hong Kong direct sourcing office in H2 for which no benefit will flow until FY2019. However, this expenditure should provide significant future upside if well executed (consider what it did for Kmart).
- Apparently the company is working with consultants to improve the group's cost position in the second half. Any benefits from this should be upside to guidance;
- Its also worth noting that although H2 guidance looks conservative, it will mean a c$7m improvement in H2 EBIT, which isn't bad given the additional costs mentioned above. (although I still think its conservative).

I agree with Didak that the first half was a 10/10 for mgt, and am convinced there's a huge amount of s/p upside from here - just need to sit tight.