Interesting times ahead, page-53

Hey Bloomer;

I think revenue will be pretty flat this half, but with maybe a 20% improvements second half as there are half a dozen or so PPP's moved into operational phase around Christmas. Royal Adelaide Hospital will be late H2. Actually there isnt much left in the PPP pipeline now, only Ballarat iirc.

There has been talk generally of making spotless "smarter" company, you see it with automation they are starting to use, and acquisition of Nuvo (and AE Smith), and talk of negotiation with Tesla to operate recharging stations. I expect this report will explore where we are going with that long term growth direction.

I pulled apart the last FY and half year results, and interpolated 2H numbers, i think they will be a good indicator for this 1H as issues we had in 1HFY16 are said to have been resolved.

Exception include; depreciation i expect it will be higher this half by 5 or 10m because we have more inventory now, there is an expected drop in revenue of 25m revenue from a lost contract (RIO) which has been incoming for a while now (mentioned in FY earnings call), but i think its reasonable that we have picked that up in other jobs (we have picked up extra defence contracts in that time). There wasnt any major contracts up for renewal this FY so no concerns there.

I think these are pretty safe numbers, there was a story that spotless will do an equity raising, but i dont believe it (see my reasoning in other posts), and the possible class action has spooked the market, so i think there is a lot of bad news priced into the SP at the moment, so i think its very good value, but of course only my opinion.

	Column 1	Column 2	Column 3	Column 4	Column 5
1		1H FY17	FY16	2H FY16	1H FY16
2	Revenue	1570.10	3176.10	1570.10	1606.00
3	Direct Employee Expenses	-568.30	-1147.60	-568.30	-579.30
4	Subcontractor Expenses	-495.30	-961.50	-495.30	-466.20
5	Cost of goods used	-222.10	-511.90	-222.10	-289.80
6	Occupancy Costs	-10.90	-22.70	-10.90	-11.80
7	Catering Rights	-23.70	-53.50	-23.70	-29.80
8	Other Expenses	-83.65	-167.30	-75.50	-91.80
9	EBITDA	166.15	311.60	174.30	137.30
10	Depreciations	-50.00	-87.90	-47.25	-40.65
11	Ammortisation	-8.00	-15.90	-7.95	-7.95
12	Depreciation+Ammortisation	-58.00	-103.80	-55.20	-48.60
13	EBIT	108.15	207.80	119.10	88.70
14	Finance Costs	-20.40	-40.40	-20.40	-20.00
15	Finance Income	0.30	0.50	0.30	0.20
16	Profit before tax exenses	88.05	167.90	99.00	68.90
17	Income tax expenses	-26.42	-45.70	-24.90	-20.80
18	Profit for the year after tax	61.63	122.20	74.10	48.10