First glance, the numbers may appear a little underwhelming but the FY12 numbers should improve in 2H as many of the recent deals are reflected in results and hopefully furhter contract wins flow. EL&C Baillieu were working on a 40/60 1H v 2H Revenue split and a FY12 figure of $471m.
With $210m revenue 1H this would equate to a $315m 2nd half (following 40/60 basis) and total $515m or revenue 9% above Baillieu estimates. EL& C Baillieu forecast $30.5m profit after tax for FY12. A 1H result of $13m and again using the 40/60 split would imply a FY12 number of $32.5m or 6.5% ahead of forecast.
The maiden interim dividend of 2.5c fully franked is also encouraging.
DCG Price at posting:
$2.61 Sentiment: Buy Disclosure: Held
