Creditable result it seems. Half-year earnings of 8 cps not bad for a 20 cent stock.
Free cash flow of 21.5 cps ($41.3M)although this has been boosted by hedging gains (I suspect) of about 6 cps. Of this $41.3M they used $15M to pay down debt and spent $17M on property/plant etc refurbishing old stores and adding 39 new stores and closing 7. Given their stores are trading at about $45000 each on the ASX (Market cap/845 stores) I think they'd find it a lot cheaper to stop opening new stores and buy back the old ones via an on market buy back.
Seems to me the decision to stop the dividend is due to their 3 year facility coming up for review in September. They owe $30M and have $12M in cash on hand leaving $18M to find. The decision to hang on to their cash should leave them with little trouble rolling the facility over.
Stock seems outrageously cheap, am I missing something?
Creditable result it seems. Half-year earnings of 8 cps not bad...
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