jburley - i don't want to be alarmist because I am not close enough to the math on this one.
However - from my helicopter perspective (and I'm writing this from memory - so apologies if I am wrong), the negatives are:
1. Net Debt went up in the last six months of 2012 notwithstanding the business going backwards due to a combination of continued capex and restructuring costs. I don't think there was any unwinding of the significant working capital either.
2. EBITDA can turn sharply down as utilisation rates and pricing head south in tandem in a high fixed cost business.
3. As a consequence of the above - there is a risk that the EBITDA covenant will be breached this year. I don't think this is a risk in June. . .. .but it could be by December.
BLY Price at posting:
82.5¢ Sentiment: None Disclosure: Not Held
