@14.5c - Market Cap of $20.8M once you adjust for the Holmes shares... Would only cost Shrimpton family substantially less than $10M to acquire all residual shares... Compared to the ~$40M they took out of the business at IPO.
I get the uncertainties in the sector, but I think this company has a good shot at earning $10M EBITDA for FY17 without any material improvement from current position. Based on 2% Labor hire margin and accounting for recent wins / losses, EBITDA should be about enough to meet corporate costs - so net break even. On the training side, the business made +$0.8M for 2H16. Once you add back Qld restructure ($1M), balance sheet provisioning and historical adjustments ($3.5M), the underlying performance of the group is running at $5M per half or $10M p.a. This is trading on a 2x EBITDA multiple, which seems a little crazy.... Unless something materially shocks. This also doesn't factor any value on the net debtors position...
The uncertainty and liquidity (or lack thereof) in the stock is killing the share price. Would be very helpful for the company to at least confirm that the business is trading at a steady state at the AGM.
ASH Price at posting:
14.5¢ Sentiment: Hold Disclosure: Held
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